Wednesday, December 3, 2008

Why keep on talking about Dow and not KL Composite Index



To find the entry point in stock investment , I always make sure the Dow has bottomed or is about to have a substantial rebound. Why Dow ? Because the whole world is following Dow in general. When Dow plunged, European market, Tokyo, Hong Kong, Singapore...... all followed. When Dow runs, the world may or may not follow depending on individual economy and political situation, but at least no danger. So, make sure Dow is right first, then only make sure CI is right, then only see which sector is right and which counter to buy. To sell is easier, when Dow is not right irrespective of our market's direction, sell. But for small fish, no hurry, a few lots only, enjoy the last ride before we get out. I love this photo from toursaver.com. I will try to fish for my pot of GOLD.

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