EOD Update (15 May 2006)

After continuous losses on US and global markets, Bursa finally broke in late afternoon trading today. For a while it seemed as if the bulls were trying to hang on, but when regional markets continued sliding, including the ASX, selling pressure on the Bursa finally overwhelmed whatever little buyers there were. Oilcorp took a big hit after first reaching 2.00, followed by massive churning with a slow drift down to 1.80, a sure warning sign of trouble ahead ... For anyone gung-ho enough to be thinking of buying this on dips, I would say it's strongly inadvisable, better to be safe than sorry.

As I'm typing this, the DJIA seems to be making a somewhat strong recovery, but for now I think the US markets have peaked already. There are just too many negatives in the form of persistently high inflation, depreciating currency, huge deficit, high commodity costs, rising fuel costs, high consumer debt spent on non-productive assets, etc. I'm no expert, but I'm thinking the global smart money will already be getting out of US equities/assets, but with the world awash with liquidity where else would they go? Perhaps this partially explains the huge run-up in gold, commodities and crude prices and the recent strong appreciation of Asian currencies.

I think mid-term Asia is still ok for now and the current sell-off in the Bursa will be short-lived, provided oil prices do not spike much higher and there is no conflict in Iran. At the moment, it's probably safer to wait a bit and see how the next few days pan out before trying to bargain hunt, but I have my sights set on IJM-WB and GHLSYS at the moment.

Latest purchase:

IJM-WB: +2,000 (1.15) ... Total 17,000


Latest disposals:

OILCORP: -10,000 (1.95), -5,000 (2.00) ... Balance 0

PRTASCO: -5,000 (0.98) ... Balance 10,000

SAPCRES: -15,000 (0.96) ... Balance 0


/ichithekiller