ZLBT Chats

Friday, September 18, 2009

A Challenge of Conviction >>> Only Bottomish Never Bearish

The greatest challenge that a trader or investor faces is not the ability to make calls, but to have conviction in their views and calls. The past six months was probably one of the most challenging times in recent trading memory. Many strategists were fa(r)ked out of the market when the Hang Seng market formed a bearish head and shoulders formation in end-June and mid-July (remember the pilot that parachuted out from the falling wedge?).

The FLYING WEDGE mid-June 09 >>> http://zlbursatheme.blogspot.com/2009/06/klci-charts-dow-kagi.html

Many more were faked out by Shanghai’s huge 22% correction in August. Fortunately, we dug our nails deep into the bulls and never let up or changed our bullish views till today. We were rewarded with increasingly new highs in the Dow Jones and our local FBM-KLCI and
succeeded in milking every gains of this bullish equity wave which has helped us to make substantial returns stock calls in the last 6 months.

Since March when the KLCI was below the 900 pts level, we have been optimistic to the equities bull and have never changed our bullish stance. Since then, we have been rewarded with the FBM-KLCI steadily above the psychological 1200 mark today.

BT have also been consistently bullish (since March) on key global index >>> The Dow Jones Industrial Average - the mother of all indices. Specifically speaking, we have been highlighting the recovery of the US financial stocks as the gist to lift the Dow Jones to a new phase of rally and we are seeing this materialize in the last few days. DJIA will hit the 10,000 mark better sooner than later. This 10K had been BT's target since June upon the V-shape trend recovery formation firstly noted "green shoot" with using the DOW KAGI Chart as shown below :-

The beginning of the DJIA V-Shape recovery March 09 ...........
Dow Kagi Green Shoots >>>

Our views about the global markets have helped us make more accurate calls on our local FBM-KLCI market which is highly correlated to key global markets. Zooming into stocks, many of our featured stock picks generated average investment returns to our faithful followers. Surely there are losers but these BT visitors who generally invested under their own steam are greatly overshadowed by our disciplined regular investors.

From mid-March till now, BT had made numerous trading stock picks. Based on 16th September closing prices, those stock picks made a time weighted average gain of 30%+ in a time span of 6 months give and take. That is considerably prudent if you care to ask any Fund Managers worth their salt.
More importantly, if we were to annualize our calls, each of our recommended stocks would have made annualized conservative average returns of 50% per annum, no less, based on 18th September closing prices. Some even doubled that percentage gains since mid-March 2009.

BT's recent money spinner >>> 5304 PROTON

The most significant BT articles are as per below :-
When everyone was saying RESORTS (GenM) would skid to RM1.50 >>> BT hit the nail on the head with our RM 1.84 precise REBOUND with these 2 articles superbly charted & contributed by BT regular Rocky. It CANNOT get any better than this ... or can it?

BT's War Cry >>> ONLY BOTTOMISH NEVER BEARISH!!!


"Selamat Hari Raya Aidil Fitri"
MAAF ZAHIR & BATIN

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