Market Outlook as at April 28, 2015

Market Outlook as at April 28, 2015

 A few days ago, I wrote about the strengthening of our Ringgit vis-a-vis the USD, which we can clearly see from the chart below.


Chart 1: USD-MYR daily chart as at April 27, 2015 (Source: XE.com)

I failed to follow through and to call a TAKE PROFIT on many stocks that had benefited from the strengthening of USD-MYR in the past 8-9 months. In a mere few days, we saw sharp drop in the prices of exporters, such as E&E players or furniture makers. This correction has now spread out to second & third liners stocks in general. Since many of these stocks had run up substantially over the past 3-4 months, their correction will be very severe.

Be careful!


Chart 2: FBMFLG's daily chart as at April 28, 2015_3.40pm (Source: ShareInvestor.com)


Chart 3: FBMACE's daily chart as at April 28, 2015_3.40pm (Source: ShareInvestor.com)


Chart 4: FBMEMAS's daily chart as at April 28, 2015_3.40pm (Source: ShareInvestor.com)


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