Bear is exhausted

After a week of falling last week, bears finally take a rest.

To me, it is more like a technical rebound. This means the falling trend will continue if there are more bad news.

After a week of bear action, no news means good news. Those who are fearful already sold their positions. Any emergence of new buyer will send the stock price higher.

The biggest threat to the upside now should the potential interest rate hike throughout the world. If rate hike happens in Malaysia increasing the current rate of 2.0% to 2.5%, banks are supposed to pay 25% more interest to their customers. The Malaysian bank's profit will take a 25% fall at least from the saving accounts department. Avoid banking stocks at all costs until the interest rate hike is announced in Malaysia. As for Public Bank Berhand (PBB), the best entry point is RM8.80 if it falls to that level. Since PBB has a lots of die hard fans around, it is quite hard to fall until RM9.00 I think. Anyway, it is also good to take a rest from the falling indices around the world. Whew!