Current Holding and Decision Time

 Yesterday was a panic selling day that everyone is still talking about.

I made decision to increase my holding of stock instead of unloading stocks:

Added 5000 share of MELEWAR at 0.645
Added 2000 share of XINQUAN at 1.12
The total position so far is:

15000 shares of MELEWAR averaged at RM0.682  (ignoring transaction fee)
7000 share of XINQUAN averaged at RM1.177 (ignoring transaction fee)

40% Cash and 60% Stocks.


The decision now is to reduce the positions or to hold. Increasing stock position is not recommended at this moment.

If the stock market is unfavorable, reducing position is a better option. We will see the direction of the wind in the next few days.

I also planned to buy some ETI TECH in the coming days. It is good for long term.



Global economic view:
The US President's Obama's State of the Union presentation is quite successful as he is trying to please everyone which helps boost the confidence of all individuals in the states.

US Fed Chairman Bernanke's reappointment today can be another boost to the possible rally in the next few days. If Bernanke has failed to be "rethroned" today, tomorrow can be a very ugly day but for just a short period of time as changing the captain in a battle is always not recommended. The battle over financial crisis is considered a big deal. It is unwise to change the leader half way of the battle.

China's asset bubble is believed to be controlled well under careful Chinese government.

US coming unemployment problem may post another threat to the US consumer confidence. George Soros has spoken that US is going to have another recession very soon. He also predicted the last recession. Dr. Doom is also giving another warning at CNBC interview on 27th of January 2010:

Roubini: Asset Bubble Is Beginning Now

Link: http://www.cnbc.com/id/35078010