A State of Early Shock!

What an eventful day! I was watching in horror the performance of Kuala Lumpur Stock Exchange this morning and wow!! our index fell by 100 points within minutes of the opening bell! This is a whopping 8% off from yesterday's close, taking the cue from regional markets and the overnight sell-off on Wall Street! For the matter, Dow Jone fell more than 3% overnight and is the worse fall in the aftermath of Sept11 attack!

Just few days ago, Malaysia stockmarket was buzzing with excitement as the index had reached all time high. Retail investors, analyst and journalist were all so excited with the market potential that many of them have predicted the index to surpass Malaysia's historic new high (ie., 1332) to happen this year! The entire prediction has now turned upside down in a matter of days if not hours! No thanks to China's Shanghai stockmarket which plummeted more than 8% yesterday and created a worldwide typhoon! I can't help it but old painful memories reminiscent of the 1997 Thailand's market crash came into my mind! Is this another "tom-yam" effect that is going to blow away worldwide stockmarkets like a storm?? My analysis of the current situation is next. Stay tune.