|As warned by our Master Algorithm earlier, the local market went into|
|a sharp correction and the US market also sold off yesterday.|
|The selldown could be just the beginning (at least for the US market)|
|and the local market could be only in the middle of its correction.|
|Conservative traders should stay out of the market while aggressive|
|traders may pick up stocks on rebound with tight stop loss soon.|
Upside however is limited with a clear hit-and-run approach only.
|On hindsight for one stock, Telekom, we should have stop out at RM3.18 but|
|decided to wait until SS RM3.00, which was broken yesterday and|
|showed that its always unwise not to keep to the Algorithm stop loss.|
|We remain cash rich overall however thanks to warning from the Algorithm scanning and we prefer to stay on the sidelines first while awaiting cheaper prices to buy back in.