Tuesday, June 1, 2010

Another Two-week Shopping Window?

Malaysia will be having its two-week school holiday starting this Saturday (5th of June).

My earlier post indicated that stocks price may drop during school holiday but it is not consistent all the time.

But two things I noticed since the last observation:

1) One week before the school holiday, stock volume will be soft.
2) There is always a short rally after the school holiday almost 100% of the time.

But this time may not be the same as the World Cup 2010 will last until mid July. The rally will be significantly softened.

With all the negativity surrouding the stock market, it is safe to stay away from stock market until October. Here are the reasons:

1) School holiday from 5th - 19th. Rich dads will sell all stocks this week and only be back on the 20th.
2) World Cup will begin on the 11th of June.
3) Europe problems may last for a while.
4) A lots of Dr. Dooms from the US and Malaysian investment firms are making doomsday call on global stock market.
5) China's economy is shrinking but the inflation is hiking.
6) Malaysia will raise its sugar and petrol prices.
7) Malaysia ruling party's defeat in recent by-election in Sibu could have negative ripple effect.
8) RPGT of Malaysia started in 2010 may start to see the impact.
9) Downgrade of Spain
10) Strong Malaysian currency is still hurting exports and prevent foreign investments. Everyone is looking for cheap money these days. Not a good sign.
11) Recent potential fraud cases of Kenmark and Sime Darby may tarnish the image of Bursa.


It is very hard to find a bull factor to buy stocks for now. Even Warren Buffet is getting away from stock market. The Daredevil of stock is fleeing? It's odd. Maybe it is time say when Warren Buffet is fearful, be greedy. Just kidding.