FBM KLCI >>> BULLS IN FULL SWING

The FBM KLCI bull as well as global equities are now in full swing. The bulls are rallying so furiously that our targeted level of 1,165 would be reached before even 1 week has passed since our 1,165 call. With only 25 points to go, it is safe to say that our target will be reached within the week.
Expecting a pull-back? Not yet.
While many traders would be fearing a pull-back as a result of the high octane rally in the last few days, we opine that there would not be a significant pull back, at least not yet.
Firstly, the buying volume in our market is not near relative peak levels yet, indicating that many people are in fact still on the sidelines. Secondly, though RSI is high (80%) and in overbought territory, considering the strength of this current bull, we actually expect the market to be further overbought and RSI to trend higher near record levels of above 90%. Hence, to sell now would be to risk the opportunity cost of more gains in the near term.
No pull-back for second liners
The rally in our local market can be largely attributed to blue chip financials which have rallied 8.6% since last Monday. In comparison the broader industrial index has only rallied 3.3% during the same span of time. We reassure retailers that it is still safe to add more second liner positions and to hold on to those positions and ride the bull further in the near term.

Property and construction stocks remain our top picks such as DNP, E&O, FAJAR and FAJAR-WA.

http://zlbursatheme.blogspot.com/2009/07/7047-fajar-stability-093-sen-noted.html