Ugly bounces i.e. with weak support (volume) - kcb, bbk, arm. I like coop & mpesa. No excitement from this bounce. Agri stocks, Mr market continues to favour them.
Since NSE has decided to join in the euphoria global stocks rally, the bounce target level is 3500 - 3700. Why I call it a bounce is coz this is hopium based. Fundamentally nothing has changed in KE. Why hasn't nssf injected its massive funds... Look at NSE's volume trend... I can also see the latest TBill 91 day result shows undersubscribed @15%. A rate spike is coming & 18% maybe surpassed
Money market needs to cool off & that rate goes down below 10% to force funds back to NSE. A nasty surprise for the NSE bounce would be if MPC on Tuesday hikes the CBR again.
Globally, euroland has complicated the math badly by hiding the can instead of kicking it down the road where we can all see - meaning PIIGS could all crash at the same time one day instead of just Greece! The current global stocks kneejerk rallies reminds me of Nov 2008... By Feb 2009, it was a complete carnage... Caution.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!