Thursday, January 7, 2010

Pre-Chinese New Year Rally

Just for fun, I computed 15 years of KLCI movement around CNY period (40 days before and after CNY) since so many people have been talking about pre-CNY rally. How true is it? Enjoy the graph below!

Surprisingly, my findings showed that on average KLCI performance rose 5% during the 40 days before CNY and spiked up to 8% after CNY (Base count from 40 days before CNY). Though this rally is not fundamentally driven, perspective of the investors anticipating a pre-CNY rally does make an impact on the market movement. Though there were some years where KLCI performed badly during CNY, this year is different, backed by improving market sentiment, economic recovery etc etc. In the meantime, let's just ride on the rising tide yah!!

Happy trading!!

PS: Mudajaya and Supermax flight was just exhilarating. Both breached more than RM5.00 (Though Mudajaya fell back to RM4.90 level currently). Anyway, will wait for RM6.00 to sell.

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