22/6/2011

SET 1023.86 (-3.86)

WOOOOO!!!! MALEE closed at 15.00 (+13.43, +855.41%). Oh smack! I change my mind. I don't wanna short you no more. It's unbelievable. Brand new millionaires were born today. I'm very impressed. At one point, I thought they were gonna go super epic, +1000%. hahaha. Too bad they didn't. It would have been ridiculous (in a good way).
Is the price justified? Actually, maybe... Before, its price was 1.57, with a P/E of 1.13 (from SET website 30/9/2010 data). If you expect the fair value to be around P/E of 10, then it's 15.70. Is this the correct way? Hmmm. You would need to study up to find that out.

As for the SET Index, it closed at the day's low. Imagine that! Good news from Europe and most of Asia is sluggish. Europe is in the red zone too, but not by much. The news says that Greek bonds rose so stocks and futures are down. It's an ugly time for the market as a whole right now. Its behavior is erratic at best. Closing at the day's high one day, and then closing at the low the next day. To be fair, the index did try to test the morning session's high in the afternoon, but it didn't make it, leading to a sell-off in the end. Nevertheless, it's a freakin rollercoaster ride. All the super risk aversed people who haven't gotten out of the market are defecating on themselves. Even though we're only in this 1010 to 1030 area, it's highly volatile due to the lack of direction and how fast it changes. We're going to have to let it ride out for a while longer to see what pattern SET is going to form, if it does form one at all. All you MAIs and ICTs are loving it though. All the other sectors are (-_-)'

So tonight the Fed are probably gonna announce that they're gonna keep interest rates at the same level and that they're not thinking about QE3 right now. The interest rate is basically zero, so not much they can do there! People are pissed at Bernanke. After the past two QEs, it seems clear that the US economy needs life support and raises a lot of doubts on whether there have been any real progress here.