What is causing these wild swings? Simply put, there are a combination of factors playing out at the same time, which include panic, fear, hope, greed and of course, the technical levels, driven by algorithmic trading and which could lead to more momentum for the market, either on the way up or on the way down.
THE past five trading days saw the FBM KLCI bouncing off from a low of 1,208 points on March 16 to reach as high as 1,353 points on Friday before closing at 1,343 points.
From the low a week ago, the index alone has rebounded as much as 143 points or about 11.8% and some investors are asking whether we have seen the worse and the market should continue its long uphill climb or was this a typical “dead cat bounce” that we see time and again during a market downturn?
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