dear all,
based on my experience,market should be correction very soon.
as you can see,in order to attract retailers to catch at higher price,various penny stock with weak fundamental is aggressively release positive news,like m3,mtouche,xox,etc.
but as usual,syndicate immediately push up share second day morning,and then quickly sell their share to speculators.as an result,i saw quite a numbers of "open high close low" cases in past 2 day.
yes,syndicates are throwing their shares into market,their are ready to retreat.
so,i suggest you to stop buying penny stock,especially do not chase any rally,before a major penny stock correction that should come very soon.
quite a number of penny stock aldy rise by 80%-200% within last 3 month,but sorry to said,the rally was purely supported by hot money(syndicate),not fundamental,it had to be ended at certain point.
in three more week,listed company should started to release their 1st Q financial result,and no doubt,most of the penny stock wont be able to perform well.
reasonably speaking,if i were one of the syndicate,i will definitly don want to wait until then,otherwise i might get stuck with millions of lousy share.
so,the best way to do is spread good news to market,like aggrement signing,business collaboration,create rumors,or posting mis-leading blog(which is also quite a lot recently if you did follow i3 closely),stimulus buying interest,then sell as much as possible.
unfortunately,this is already happening.
other than that,i also notice USD starting to depreciate recently,from RM4.53 to RM4.40,i do not know will dollar continue to depreciate under trump's policy influence or not,but i think it is safe to believe dollar's rally had ended,so we should see stronger Ringgit going forward,especially before 14th General election.
when Ringgit rebound,export denominated company should generally downgrade by market,due to expectation on future earning erosion.
by the time Ringgit rebound to RM4.00-4.20,we shall see 10-20% of share price retracement of export companys.
so,just avoid export companys and penny stocks,if you dont want to get burn and lose your hard earned money.
just for sharing:)
http://klse.i3investor.com/blogs/sherlock/120640.jsp
