Robert Kiyosaki - Network Marketing MLM

Crowds and Me

Most people do not follow their own trading plans because they let the crowd influence their feelings, thoughts and actions. The crowd is keep moving or swinging from hope to fear, fear to hope, optimism to pessimism. We are betting on the future mood of the crowd. Bulls and bears are all totaly strangers and it means our value of investment is also depend on these strangers action. What we can control is only the enter or exit trades.

Evaluate from myself, I alwasy feel tense when I am in the market. My judgement was then influence by the price movement after I put in the position. The crowd emotion shown on the price and it make me deviate from my trading plan and lose money.

Expert said, people change when they join crowds. They become more impulsive, looking for leader and act emotion more to interllectual. When you join the crowds, your thinking is become less capable to thinking for yourself. Do you think so?

When I join the group, I act like a child following a parent. Market do not care about all this. Successful traders are independent thinkers!

KNM, SAPCRES

7164 KNM KNM GROUP BHD
PROPOSED ACQUISITION

KNM GROUP BERHAD (KNM OR COMPANY) - PROPOSED ACQUISITION OF THE ENTIRE BUSINESS

AND UNDERTAKINGS OF THE COMPANY (PROPOSED ACQUISITION)

Further to the Companys announcements dated 4 February 2010 and 22 March 2010
in relation to the above, the Board of Directors of KNM wishes to announce that
after due deliberation, the Company and BlueFire Capital Group Ltd (BlueFire), including its partners GS Capital Partners VI Fund L.P and Mettiz Capital Limited, are unable to reach an agreement on the pricing of the Proposed Acquisition. Hence, the parties have mutually agreed that the proposal made by BlueFire on 4 February 2010 has lapsed.This announcement is dated 14 April 2010.
14/04/2010 05:30 PM

KNM is trading at its lowest since May last year. Of the seven research houses covering KNM, three have a Sell call (target prices range from 59 sen to 68 sen), two Hold (target prices 60 sen and 72 sen), one underperform (75 sen) and one fully valued (65 sen).
 
Expect Friday to continue sell down the stock, the panic seller will make the price lower and lower. Observe the strength of the bear for today and is time to accumulate at discounted price. Sooner or later, believe that another acquisition will come. Will buy some if the price at 60 cent today.
 
Sapcres (8575) - Down another 2.13% on Thursday, closed at 2.30, with RSI at 39 now. Accu/ Dist going lower. If the price cross the 2.26 level the bearish will continue, support line.

US Market Up!

Dow +103.69pts to 11,123.11.
A jump in retail sales, and further evidence, if it were needed, that U.S. inflation is not a problem, also helped.
Stronger-than-expected corporate results and March retail sales pushed the S&P 500 past 1,200 for the first time in 18 months.
Forecasts that the U.S. economy might experience a double-dip recession have mostly gone from investors radar screens, to be replaced by fresh happy-talk that a V-shaped recovery can now be expected

Let's see the New Zealand/Australia Morning Call-Global markets movement to reflect the above and align with US gain. Believe KLSE will follow up this morning as well.

TCHONG (4405) - Wow! What happen to this stock? Flying high again today. Our buyers are bit irrational to push up the price up. Lots of buyers want to catch up the boat after seeing the price moving up thought can get some handsome profit here. Beware of profit taking to come.

Rubber Stocks - Almost all in red. Lot of selling for profit taking happening I think. Ready to grab some stock at cheaper price. Let choose which one you like the most. Supermx, Harta, topglove or etc... 

Dow already cross 11,000points, the Greece concern is ease already. Over the weekend, European leaders agreed to make loans available to Greece to help the country ease its debt burden. Investors looking for signs of domestic growth will get plenty of data to sort through this week, including the start of earnings season.

AIRASIA, AXIATA, MAMEE

AirAsia (5099) - Dropped sharply for the past 3 trading days from RM1.44 (7th Apr) high to RM 1.32 (9th Apr) close, approx. 8% declined. Looking to buy some at RM 1.27 when there is a sign of reversal/ rebound. Basically, I like the stock that have volumn volatility and the roller coaster price chart up & down swing. Look back at it 17th Mar till 6th Apr from RM 1.30 to RM 1.44, 10% gained, bit slow but can consider a good upward. Moreover, the company is aggressively expanding & diversify fast.

a. Flatbed premium seat - service enhancement
b. VietJet Air and AirAsia have forged a strategic partnership agreement with the launching a Vietnam-based low-cost airline. AirAsia had earlier acquired a 30% equity stake in VietJet Air. Offering low fares to grow travel and tourism in Vietnam and in the rest of the ASEAN region
c. Direct daily flight from Kota Kinabalu to Hong Kong, further expanding its international connectivity from East Malaysia.
d. Venture into healthcare business? Low cost hospital? Recently CEO Tony Fernandes went into the education sector by taking a 30 per cent stake in Kuala Lumpur Education City (KLEC)

Axiata (6888) - Consolidated from 3rd Mar till 9th Apr yo yo at RM 3.8 - 3.9. The longest the flat price the strongest explosion if the trend start either downtrend or uptrend. Wait for the movement & excitement to come yet with the signal.

Mamee (5282) - Steady uptrend from last year till now, every now & then reach a higher high. Food industry is a stable and low risk stock to hold I presume. Some retracement lately, cross the bollinger mid band shown still bearish at the moment. Buy at lower price should be a good strategy now.

Dubai Market

Bloomberg 11th Apr 2010 - Dubai’s benchmark stock index rallied by the most in more than two weeks. DFM General Index rose 3.4 percent, the most since March 25, to close at 1,824.97 in Dubai

Arabtec Holding Co., the United Arab Emirates’ biggest construction company rallied 6.3 percent
Emaar, the developer of the world’s tallest tower in Dubai rose 6.8 percent.

Emmar chairman: "The company doesn’t need Dubai government help as its India unit planned a share sale. The situation of the developer is healthy and that it hasn’t pulled out of a tourism project in Indonesia. property prices in Dubai are stable and that Emaar will not need assistance from the sheikhdom’s government."

Mashreqbank PSC fund manager: "There is value in the region as a whole and definitely in the U.A.E. Saudi was pretty strong yesterday, so that’s positive from a sentiment perspective. The first few earnings that have come out in the region have been interesting.”

First Quarter Earnings -
1.Saudi Arabian Fertilizer Co., a unit of Saudi Basic Industries Corp., yesterday said quarterly profit rose 33 percent to 698 million riyals ($186 million)
2.Riyad Bank, Saudi Arabia’s third-largest lender by market value, today said first-quarter profit rose 55 percent to 684 million riyals from a year earlier.
3. Saudi Hotels & Resorts Areas Co., an operator of hotels and housing compounds in the kingdom, said profit in the quarter gained 10 percent to 31.1 million riyals on income from a new project.

MRCB

Let's examine the 5 gains above on MRCB chart since Oct 08 - May 09. Do you see the common entry signal here? If you can capture the same pattern in the future chart, you will make fortune. Believe it or not?

Emotional In Market

You will feel joy when you buy a stock and it explode to upward and you may feel sad and fear when it go downtrend.

The more the price go up, you feel the tense on the gain that accumulate on paper, you fear that the profit will varnish if you do not take profit now, on another hand you still greedy to gain more profit by on-hold the selling. Eventually the price drop and you start to regret that you didn't make right decision to lock profit at high price. Portion of the gain already return to the market. You feel sad, regret, frustration & all the negative emotion deep inside yourself. You start to convice yourself, as long as not losing money already can consider as a good trade. 

The more the price go down, you feel sad on the position that you hold on. You think to sell at lost, but another hand feel that may have probability of regain the price, tomorrow or next week the price will go up again. Instead of cut loss, you fear of loss and on-hold the selling. Eventually, the price day by day keeping go down bit by bit. It eat your capital bit by bit as well. If you sell now, the loss is already too big for you to recover and some people just hold it till the company fall to PN16 or equivalent. You said to yourself that next time to cut loss, you do it right after the next trade. But the price go up after you sold the stock, you feel angry, frustrated and piss on the decision made.

The above may sound familiar to you. Emotioanal roller coaster up & down, peak & valley in the trading game.

These feelings have nothing to do with the market, they exist only inside you. The market do not know you exist and you cannot do anything to influence the market anyway. The only thing you can do is to control your behaviour.

We need to use our head and stay calm. Only amature become exited or depressed because of their trades. Emotion reaction is too dangerous that we cannot afford in stock trading. Let's use our intellect to trade instead of emotion to trade.    

I will always love you!

Up Trend & Down Trend

When someone ask me why prices went up for that stock? I usually will answer – more buyers than sellers. I think the answer is not true. The number of trading is always equal. If you want to buy 5 lots of share A, someone must willing to sell the 5 lots of share A to you & vice versa.
I came to a conclusion that prices move up or down is because of changes of the intensity of greed & fear amongst the buyers & sellers.

When the trend is up, the bulls don’t mind to pay a little bit more to get the share. The bulls feel optimistic on the share will rise even higher. The bear think that it is a time to take profit with higher price and get tense in the uptrend; bears that are more fearful & defensive start to sell. The stock prices rally. As long as the bulls have strong feeling & enthusiastic on the stock, the price will keep going up.

When the trend is down, the bear think the stock not going to hold the price, they throw the position on hand with lower prices as long as get out fast to sideline. The bull are fearful and will only agree to buy when the price only at certain discount from the market price. As long as the bears think that the selling out at lower price is the wise move. The downtrend will continue.

Do you agree with me fear is stronger emotion compared to greed?

Successful traders need to obey the below: -


1. Analyze the balance power between bulls and bears as crowd psychology.
2. Practice good money management.
3. Personal discipline to follow trading plan avoid emotional bond with the market high/ low.

DJIA 30 Companies

1. Alcoa
2. Allied Signal
3. American Express
4. Boeing
5. Caterpillar
6. Chevron
7. DuPont
8. Disney
9. Kodak
10. General Electric
11. General Motors
12. Goodyear
13. Hewlett-Packard
14. IBM
15. International Paper Co.
16. J.P. Morgan
17. Johnson & Johnson
18. Coca Cola
19. McDonalds
20. 3M
21. Philip Morris
22. Merck
23. Procter and Gamble
24. Sears
25. AT&T
26. Travlers
27. Union Carbide
28. United Technologies
29. Exxon
30. WalMart

HAI-O: Buy, target price RM5.04 - OSK Research

Business Times 9th April 2010

OSK Research upgraded Hai-O Enterprise Bhd (7668)to a "buy" saying it has decent upside potential, but kept its target price at RM5.04.

Hai-O is involved in wholesaling, retailing, multi-level marketing and pharmaceuticals, as well as Chinese medicinal clinics.
OSK believes the firm is on track to achieve a profit forecast of RM72.6 million for the current year ending April 30.
This would be driven mainly by better multi-level marketing sales on the back of a higher membership base and better retail sales.
It expects sales during the Chinese New Year period, which arrived later this year, to be captured in its fourth quarter.
"Management revealed that there are some developments in the technology division and that all is progressing as planned, although there are no further details," it noted in a report yesterday
The shares last closed at RM4.40.

Today closed at RM 4.58. (Up of 18 cent in single day with volumn increase) - Bullish signal

Robert Kiyosaki

Morning Deal

Brought in HAIO at RM 4.53 and KENCANA at RM 1.61 this morning.
Sold SCOMI at RM 0.54 in later half day.

I See You!

I see you! Theme of Avatar.
Check out the IJM and Kencana tomorrow on it potential. Need to see how the US market perform tonight first, thinking to buy some.

SCOMI - 20% Gain per day

Did you catch the uptrend boat? From yesterday close 0.445cent to 0.54cent. ~21% with volumn 0.14B.

Retail sales fall for a 2nd straight month in April

 

DJIA 7th Apr 2010

US Stock Futures Highlight:-
Stocks have retreated in recent days after the Dow Jones industrial average flirted with 11,000 for the first time in 18 months. Single day drop 72.47pts.

1. There are concerns that debt problems in Greece and other European nations could upend a global economic recovery and damage the euro. Greece's borrowing costs continue to surge. Investors are demanding more interest now to hold Greece's debt because of concerns about a possible default. The spread between Greek and German two-year bonds swelled by a staggering 1.2 percentage points Thursday.The higher rates will make it more expensive for Greece to issue new debt or roll over outstanding debt, which could trigger a default.

2. A disappointing report on initial jobless claims is also sending U.S. futures lower. High unemployment is considered a major stumbling block to a strong, sustained economic rebound.

3. New sales reports from retailers showed consumers are beginning to return to stores, though the data hasn't been good enough to offset the Greece debt concerns or the disappointing jobs report.

4. Consumer spending is a primary driver of economic growth, so a jump in spending would show consumers are gaining more confidence in their finances and the economy.

5. Losses accelerated late in the day after the Federal Reserve said consumer borrowing fell unexpectedly in February, dropping by $11.5 billion. Economists had expected borrowing to rise by $500 million. Weakness in credit cards and auto loans gave investors pause about whether consumer spending will remain stagnant and slow a recovery.

KLSE Profit Taking Days on Thursday 8th Apr 2010

Will the first quarter earning support today's earning & make the US DJIA rebound & so do KLSE?

SCOMI

I personally like to use moving avearge of 100days to set as yardstick for uptrend or downtrend. SCOMI is moving the direction to break the 100d MA line with 3 consecutive days of significant high volume set in. As long as it able to move above RM 0.445 level. I think it is worthwhile to accumulate.

Moving average just a many many photo put together to see the trend, it combines prices for several days to represent the hugh crowds direction of mass movement. When the crowd is more bullish than before, prices raise above the moving average whereas when the crowd is more bearish than before, prices fall below the moving average.

SCOMI News

1. CIMB Research: SCOMI a buy at 40cent - The Edge 5th Apr 2010 (MONDAY)

"Scomi is still gyrating in a descending wedge pattern. Although prices have been making lower lows formation over the past few months, it seems that the correction is probably at its tail end.

"A breakout above its 50-day SMA (at RM0.415) would likely indicate that a stronger rebound is underway," it said on Monday, April 5.
Traders with greater risk appetite may get in now in anticipation of a breakout run.
Scomi Group sells drilling mud and chemical products, provides drilling fluids materials, equipment, and services, manufactures and fabricates road transport equipment and material handling equipment, operates marketing agent for road transport equipment, and provides leasing on motor vehicles.

To The Moon & Back - Savage Garden

She's taking time making up the reasons
To justify all the hurt inside
Guess she knows from the smiles and the look in their eyes
Everyone's got a theory about the bitter one
They're saying, "Mama never loved her much"
And, "Daddy never keeps in touch"
That's why she shies away from human affection"
But somewhere in a private place
She packs her bags for outer space
And now she's waiting for the right kind of pilot to come
And she'll say to him
She's sayin

Chorus

I would fly to the moon and back if you be...
If you be my baby
I've got a ticket for a world where we, we belong
So would you be my baby?

She can't remember a time when she felt needed
If love was red then she was color blind
All her friends, well they've been trialed for treason
And crimes that were never defined
She's saying, "Love is like a barren place,
And reaching out for human faith
It's like a journey I just don't have a map for"
So baby's gonna take a dive and
Push the shift to overdrive
Send a signal that she's hanging
All her hopes on the stars
What a pleasant dream
She's saying

Chorus

I would fly to the moon and back if you be...
If you be my baby
I've got a ticket for a world where we,we belong
So would you be my baby?

Hold on, hold on ...
Mama never loved her much
And, Daddy never keeps in touch
That's why she shies away from human affection
But somewhere in a private place
She packs her bags for outer space
And now she's waiting for the right kind of pilot to come
And she'll say to him
She's saying

Chorus(2x)

I would fly to the moon and back if you be...
If you be my baby
I've got a ticket for a world where we,we belong
So would you be my baby?
I would fly to the moon and back if you be...
If you be my baby
I've got a ticket for a world where we,we belong
So would you be my baby?
yeaaaah ..

GAMUDA

Did you manage to ride the bull on the rise recently set in on Gamuda?

Let’s examine from the volume-based indicator, OBV On-Balance Volume. Normally, traders use the OBV as leading indicator. We must put into understanding that the volume represents the emotion of the market participants. I am talking about the emotion & financial commitment on the involvement in the stock. The OBV achieved a new high from the previous high of 57.9M to today higher high 69.7M approximately 20% gain. What the indicator trying to tell us that the bulls are powerful, price is likely to rise even higher & the trend is confirm, it give a buy signal. The price is moving the same direction with the OBV curve. Now, the question is how long the uptrend can sustain since it broke the 100daysMA of 25 of March?

SAAG

On 6th Apr 2010, SAAG was one of the actively traded stock in the market. It achieved volumn of 49.7million share exchange vs. 40 days VMA of 10.5million fetch almost 5-fold increase in single day. The sudden dramatic volumn increase is essential to trigger a thinker. We are dealing with market prediction here, what is going to happen next when you normally see the above phenomenan? Follow with explosive price movement upward due to high demand of buyers come in to play, think so? 

Look carefully, the increase of volumn is not match by price increase. The bid buying & selling price is perfectly match. The buyer & seller willing to buy/ sell the share with the current market price, buyer not willing to pay higher to get the share and same to seller not willing to sell in lower price. It hold the ground firm at least at this moment. 

SAAG have entered the downtrend from somewhere Mid June 2009 till now, almost hopeless to regain ground. Cheap stock with few participant and low volumn, sad to mention. Is the worst over?

Latest News: - SAAG sees turnaround this year  (The Star 9th March 2010)

The day rates for India’s state-owned Oil And Natural Gas Corp Ltd contract work out to about US$32,000-US33,000 per day. The cashflow of SAAG group is expected to be alleviated once this revenue is generated.

“The company had perception issues. The poor results did not help, hence investors threw their shares,” said a dealer.

The company has about RM550mil worth of contracts in its order book, which will keep the company busy up to 2012. The company had in December 2007 announced its requirement to raise additional capital through rights and exchangeable bonds (EB) issues to meet its various capital requirements

For FY09, SAAG’s revenue fell to RM160.44mil from RM361.86mil previously. The company recorded a net loss of RM8.79mil from a net profit of RM30.5mil before.