Equity Market analysis
The FBM KLCI had broken above the previous 1,524.69 all time 2008 high to create another new peak at 1,531.99 on 10 November 2010.
A big price reversal on the FBM KLCI occured in early November 2010 cause the technical indicators (DMI, Oscillator and MACD) turn into negative with potential correction phase emerged. It's proven with the correction low had been formed at 1474.02 on 29 November 2010.
Global market trends may become volatile recently but the market may shows turning a corner at the 1474 low as market focus is on the more positive USA economic figures reported last week rather than eurozone's debt woes.
With the global equity market tone improving in the beginning of December, FBM KLCI may move upwards towards the resistance level 1,531 due to its CCI and stochastic showing a 'buy signal'.
The firm support arreas are at 1,479 and 1,503 level which might lead to a mild profit taking.
Impact of Unit Trust Fund performance
Price direction of local equity fund mostly directly impact by FBM KLCI market movement. Therefore swithing into Money Market fund during market correction (2nd half of November) is to lock profit or cut loss have been made to all my clients.
Given that latest analysis of fundamental & technical is going to reverse the market into bullish trend, I have switch my clients from money market fund into equity fund again.
It's might be a best time again to invest in equity fund in Public Mutual unit trust to enjoy the bullish pattern before next correction. Recently, public mutual have launch 2 new funds and for details please click below address.