CHART OF THE DAY(TUESDAY)30-NOV-10

STOCK MARKET OUTLOOK (For Nov 30, 2010): KLCI REBOUND WELCOMED BUT MANY STOCKS STILL WEAK. ONLY SELECTIVE STOCKS CAN RALLY. BE SELECTIVE.

On Monday’s close the KLCI was up by 3.90 points or 0.26% at 1495.95 on slightly lower volume of 1.04billion shares traded. Decliners led advancers by 463 to 293 with 274 stocks unchanged.

1. U.S. stocks headed to a lower open Monday as concerns about the European debt crisis took the edge off a strong weekend of holiday sales. The National Retail Federation, a trade group, estimated that 212 million shoppers visited stores and websites during the first weekend of the holiday season, up from 195 million last year. Online spending also rose more than 14 percent from Thanksgiving Day through Saturday, according to IBM's Coremetrics. A fuller picture on spending will come Thursday when retailers report their November revenue.

2. Investors have been hoping that consumers, who have generally been spending cautiously since the recession, would feel more comfortable about shopping during the holidays. Many economists believe that consumers will have to spend more freely for the economy to put together a stronger recovery. Traders seemed pleased with the results initially, but it's too soon to tell if sales will remain strong through Christmas.

3. Ahead of the opening bell, Dow Jones industrial average futures are down 4, or 0.04 percent, at 11,026. Standard & Poor's 500 index futures are down 1, or 0.1 percent, at 1,182. Nasdaq 100 index futures are down 2, or 0.1 percent, at 2,144. (Source: Yahoo Finance).

4. Many Malaysian stocks closed on a weak note on Monday despite a rebound on the KLCI. But the bounce on the KLCI was nonetheless impressive because it opened on a weak note, came down 18.03 points to 1474.02 before a strong rally in the afternoon lifted the index back up to neutralize its losses to close up 3.90 points, at 1495.95. This is a pretty impressive turnaround of over 20 points!

5. As a result of this turnaround, the stock index futures contract is now trading at a premium of 2.5 points over cash. This premium suggests that stock players are bullish on stocks.

6. Be that as it may, we see only selective buying on the local bourse yesterday (but we were right on calling a buy on KNM and TWS yesterday!) Only some index stocks and selective lower liners are bullish. The majority are still lacking buying support. Hence buy signals coming from our technical studies remain isolated and few.

7. The ones we see capable of further buying today are: KEURO, TWS, KNM, KBUNAI, AIRASIA,

AIRASIA-CF, IJM-WC.

8. New stock to watch is KSTAR.

9. Moving averages are still positive on the KLCI and many lower liners but are reaching a marginal point where further falls would tip the moving averages into negative territory, till the market towards a bearish phase. Note an important trendline support is 1470 (see chart in excel attached).

10. The ringgit improved marginally to 3.1500 from 3.1525. We are ready to take profit on the ringgit by buying dollars and selling ringgits given the turnaround of the U.S. dollar.

CONCLUSION: The KLCI made a U-turn yesterday, and formed a “hammer” pattern. A hammer seen

after a market dip, is a signal of a possible market bottom. Look for further rebound today.

Upside Targets: 1534(nearly hit)/1681 (Revised targets on 08/11/10)

Immediate downside targets: 1480 (hit)/1445/1342/ (Revised on 16/11/10)

Ichimoku chart: Span A SUPPORT: 1416 (Revised on 16/11/10)

KNM: H/FURTHER BUY/INVERTED HEAD & SHOULDERS BOTTOM

KEURO: BUY/WEDGE BREAKOUT/TARGET 1.50

CHART OF THE DAY(Tuesday) 02- Nov.-2010

STOCK MARKET OUTLOOK (For Nov 02, 2010): WHILE RIDING THIS BULL WE MUST BEWARE OF THE BEAR!

On Monday’s close the KLCI was up by 4.00 points or 0.27% at 1509.66 on higher volume of 1.27 billion shares traded. Decliners led advancers by 440 to 344 with 316 stocks unchanged.

1. U.S. stocks rose sharply Monday after reports showed growth in manufacturing activity accelerated in both the U.S. and China last month. The market was also getting a lift ahead of midterm elections and the Federal Reserve's meeting this week where the central bank is expected to announce a new economic stimulus program. The Dow Jones industrial average rose about 50 points in late morning trading. (Source: Yahoo Finance).
2. With expectations that the Dow can rebound to close at its year’s high last night, our KLCI should see further rebounds today.
3. As at yesterday’s close, the KLCI is edging closer to test its highest close of 1516.22 registered on 11/1/2008.
4. But what is not a welcome sign is that there were more decliners than gainers in yesterday’s activity. This is called “negative market breadth” and should deserve some caution as you try to make some money from the stock market!
5. When a market has negative market breadth, its rally is not running on two legs but one leg, hence it could be unsustainable. As such we should be cautious and sell on any sharp decline. While riding this bull we need to beware of the bear.
6. Still, we expect the KLCI to test its 2.618 times wave 1 target of 1534 before correcting.
7. At this level, the KLCI is at its second highest close EVER. The highest close was at 1516.22
clocked on 11/1/2008. The highest high registered by our KLCI was at 1524.69 on
14/1/2008.
8. We have never been so high (in terms of the main KLCI index) in our nation’s history. Not in 1994, not in 1997, not in 2000 nor in 2004. It was only in 2008 that saw our KLCI closed at 1516.22 – its highest close ever and yesterday we are just a hair’s breathe away from this record high!
9. At yesterday’s close of 1509.66, we are clocking at its second highest close ever. But we are cautious because the strong volume was clocked with more losers than gainers suggesting selling volume.
10. We need to see positive market breadth today accompanied by a rise in the index if this
market is to remain technically strong.
11. Not all stocks are being played up. Mostly it is the index linked and selective stocks from the finance, property, oil and gas and GLCs are being played up.
12. This weakness is very obvious as can be seen from the higher number of losers than gainers.
13. Stock picking is therefore the key to making money in this stock market bull run!
14. Our stocks to watch that are likely to run today are: DNP, GAB, GUANCHG, AFFIN*, AFG, AMMB, OSK*, RHBCAP*, APM, DRBHCOM, HWGB, GUOCO*, IJMLAND, INCHKEN, L&G*, SUNRISE,TEBRAU, DAYA, AFFIN-CA, AIRASIA-CF, IJMLAND-WA.
15. New stock is KFC.
16. GUOCO – take profit at target 1.48.
17. We like L&G, TEBRAU, AFFIN, RHBCAP, OSK, GUOCO.
18. Please check out our stock charts in Excel format before you invest.
19. The Ichimoku charts of the Dow as well as the rest of the world are up. Even Tokyo, which is amongst the world’s weakness bourse, is turning around with the close ABOVE clouds or “kumo”. As such we expect the Dow to be up.
20. We expect Dow to rebound to test 12500 (amended based on Wolfe wave). We are still long on Dow CFD or S & P 500 index futures.
21. The ringgit was slightly strengthened to 3.0900 from 3.1100. We are still long ringgit/short USD.
22. CONCLUSION: The KLCI is now at its second highest level in its history!!! Expect higher
highs! Buy. Look for test of 1534. Index linked stocks still can rally. Buy and take profit on
rally.
Upside Targets: 1534 (Revised targets on 02/09/10)
Immediate downside targets: 1224/1154/1094/1033 (Revised on 5/07/10)
Ichimoku chart: Span A SUPPORT: 1292 (Revised on 5/7/10)

KLCI: H/SELECTIVE BUY/EXPECT FURTHER RALLY

CHART OF THE THE DAY(August 16, 2010)

STOCK MARKET OUTLOOK (For Aug 16, 2010): DOW COULD REVERSE ITS WEAKNESS WHICH CAN MEAN A TEST OF ITS WOLFE WAVE TARGET OF 11300 AFTER ALL. A REBOUND ON KLSE STOCKS IS IN THE CARDS. BUY.

On Friday’s close the KLCI was up by 10.82 points or 0.80% at 1360.15 on higher volume of 996 million shares traded. Advancers led decliners by 502 to 228 with 269 stocks unchanged.
1. The Dow fell by a whopping 265 points on Thursday but that did not shake Asian equity markets.
2. All Asian bourses were higher except for Hong Kong, Manila and Thailand.
3. This is a good instance of a decoupling of the Dow from Asian markets when it comes to the downside of the Dow and this augers well for the Asian markets.
4. Yesterday’s rebound on the KLCI was not unexpected as we had highlighted the possibility of the 1349 resistance turned support line holding the market up, and it sure did.
5. This unusually strong rebound on the KLCI of 10.82 points is indeed a breath of fresh air after experiencing the very often half hearted bounces from local stocks.
6. There was an up-gap yesterday on the KLCI and it seems quite apparent that a “morning doji star” has unfolded. This seen at a low price area where stochastic hooked up from the oversold zone is indeed foretelling of more rallies to come in the coming week.
7. Here are the stocks-to-watch for Monday: ZELAN, JERNEH*, LANDMARK, LIONIND, SCOMI, GENP, INCHKEN, SAPCRES, AXIATA*, DAYANG*, GENTING*.
8. New stocks to watch are: TWSCORP, JERNEH-WA.
9. In summary I am very pleased with the rebound yesterday and it is indeed a very important rebound because any further falls would mean a fall below its 1349 support. The strong volume clocked yesterday is also a strong indication of buying power.
10. As such we expect an uptrend from now.
11. Our view about the Dow is that it is still bullish and we see it hitting the Wolfe wave target of 11300. Here are the reasons: The Dow is AT the “clouds” at 10,420 suggesting it is still bullish, the Chikou span is above price, and last but not least the Dow is AT its 200-day SMA. But it is getting more bearish by the day and continuing weakness would put the Dow is jeopardy of a recovery. Be cautious.
12. We are still optimistic Dow can rebound to test 11400 (amended) and our KLCI hitting new 2.6 year highs of 1387 and 1408.
13. The ringgit strengthend to 3.1660 from 3.1825. We are now long ringgit/short USD.
14. CONCLUSION: The KLCI is still very much above the Ichimoku clouds and this means a buy signal on selective stocks. The DAX, Singapore index, Hang Seng index, Korea index are also above clouds while Dow is AT the clouds and Footsie, CAX, Australia are in the clouds. So it looks like the world’s markets are still bullish. If Wolfe wave target is right, then expect Dow to climb further to test 11300. But look
for stability yon the Dow and a rebound on Thursday because any further falls could change our view about the bullishness of the world’s markets!

CHART OF THE THE DAY(August 06, 2010)

STOCK MARKET OUTLOOK (For Aug 06, 2010): OUR VIEW OF THE DOW HAS NOT CHANGED. WE SEE IT HITTING WOLFE WAVE TARGET OF 11300.

On Thursday’s close the KLCI was down by 0.66 points or 0.05% at 1364.82 on relatively lower volume of 993 million shares traded. Advancers led decliners by 362 to 349 with 276 stocks unchanged.
1. We had forecast “some strong rallies on selected stocks” in or newsletter yesterday.
2. True to form, TCHONG ranks as the 9th largest gaining stocks, up 0.14 to RM5.13. Can this go some more? We believe so. So is TCHONG-CA which rose by 0.045.
3. AIRASIA was another of our picks, which ranked 6th with a gain of 0.15 to RM1.65.
4. GENP ranked 4th highest gainer yesterday, up 0.20, at RM7.39 while BTEAD was the
5th largest gainer, up 0.15 to RM4.01.
5. TIMECOM, a stock which we had called a buy at 0.285, yesterday closed at 0.71 triggering our take profit target of 0.67. If TIMECOM today rise above 0.72, it’s a Re-enter BUY as the next target is expected at 0.82.
6. Much as the KLCI did not rally yesterday, lower liners were well supported and volume was not sacrificed.
7. The high volume suggests that big players are still in the market. They have not abandoned it yet.
8. Today we are expecting TIME to feature. It did not rise yesterday but is expected to do so today with a “flag breakout” pattern. Look at TIME – we call a “strong buy”.
9. HSL and TCHONG are also strong buys, especially HSL. The symmetrical triangle breakout patterns on HSL and TCHONG are significant.
10. CSCSTEEL is also a strong buy from a similar symmetrical triangle breakout pattern like HSL and TCHONG.
11. The overall stocks-to-watch for today are: HSL*, TCHONG*, CSCSTEEL, BTEAD, GENP, GENTING, MAS, SALCON, TIME*, TCHONG-CA.
12. So, much as the KLCI did not move, lower liners are steady. The KLCI is expected to rally soon.
13. Our view about the Dow is that it is bullish and we see it hitting the Wolfe wave target of 11300. Here are the reasons: The Dow has closed above the “clouds” suggesting long term bullishness, the Chikou span is above price, and last but not least the Dow closed above its 200-day SMA.
14. By now you should already be long on FKLI and Dow 30 CFD.
15. We see Dow 30 going up to a possible 11200-300 and our KLCI hitting new 2.6 year highs of
1387 and 1408.
16. The ringgit strengthened to 3.1560 from 3.1690. We are now long ringgit/short USD.
CONCLUSION: The KLCI is above the Ichimoku clouds and this means a buy signal on selective stocks. The DAX, Singapore index, Hang Seng index, Korea index are also above clouds while Dow, Footsie, CAX are in the clouds. So it looks like the world’s markets are recovering from their lows. If Wolfe wave target is right, then expect Dow to climb further to test 11300. Those that are still bearish on Dow please change your view or you will miss the U.S., Europe and Asian stock rally!

DJIA ICHOMOKU CHART: DOW COULD REBOUND TO TEST 11300/BUY DOW30 CFD



KLOFFE: MAINTAIN LONG/SELL STOP @ 1353 OL/TGT 1389/1452




CPO: BULLISH/WE EXPECT RALLIES TO TEST 2727/2799/2850

CHART OF THE THE DAY(July 21, 2010)

STOCK MARKET OUTLOOK (For Jul 21, 2010): EXPECT KLCI AND SMALL CAP STOCKS TO RALLY FURTHER.

On Tuesday’s close the KLCI was up by 4.32 points or 0.32% at 1337.67 on higher volume of 1.12 billion
shares traded. Advancers led decliners by 466 to 278 with 250 stocks unchanged.
1. The local KLCI rose on strong volume.
2. This is technically a strong signal of a bullish market.
3. We expect both the KLCI and small cap stocks to feature in today’s rally as there is a “flag breakout” on strong volume no the KLCI.
4. Our stocks-to-watch are: IJM, KEURO*, MRCB, MUDAJYA, ZELAN, KKB, PELIKAN, PBBANK, RHBCAP, COASTAL, EVERGRN, SUPERMX, UEMLAND, GENTING*, KPJ, MEASAT*.
5. Watch out for KEURO, KKB which have a “wedge breakout” pattern and Genting has an “upgap” which indicate strength. The others have symmetrical triangle breakouts, which are
also strong continuation patterns.
6. I strongly suggest investors to re-enter our market.
7. Do not short KLCI stock index futures yet nor the Dow 30 CFD or futures. I don’t see it ready to fall yet.
8. Look for our KLCI to a hit new year high of 1352 and 1387.
9. I am still looking at the Dow pulling itself up to test a Wolfe wave target of 11135.
10. These lower targets of 1233-20/1154/1031 will just have to wait.
11. We are looking at 1352 and 1387.
12. The ringgit strengthened to 3.2100 from 3.2230.

CONCLUSION:The KLCI is still above the Ichimoku clouds and this means a buy signal on selective stocks even though our market fell yesterday. The DAX, Singapore index, are also above clouds and Hang Seng index
is AT the clouds. So it looks like the world’s markets are recovering from their lows. Watch out for the Dow to lead Asian markets this week. The fact that Asian stocks, especially Malaysian stocks did not fall in the face of
a 261 points drop in the Dow is a positive sign of de-coupling between Dow and Asian indices – at least for now!

Upside Targets: 1365/1418 (Revised targets on 21/06/10)
Immediate downside targets: 1224/1154/1094/1033 (Revised on 5/07/10)
Ichimoku chart: Span A SUPPORT: 1292 (Revised on 5/7/10)



DOW JONES CAN RALLY TO TEST 11135/ H & S FAILURE?

STOCK MARKET OUTLOOK (For Jul 13, 2010): KLCI TESTED 1331 BUT FAILED TO EXCEED 1331 BUT THERE ARE BUYING ON LOWER LINERS

AS RETAIL INVESTORS SEEN ENTERING MARKET.

On Monday’s close the KLCI was up by 2.43 points or 0.18% at 1326.74 on lower volume of 610 million shares traded. Advancers led decliners by 371 to 265 with 277 stocks unchanged.
1. The KLCI went up to 1331 to test our resistance but closed below it, at 1326.74.
2. Let us see if it can re-test and exceed this resistance. If so, this market of ours is truly a unique one as it would be seen as having bucked the world’s trend – which is down.
3. Now with the Dow rally, all the more, investors, especially retail ones are embolden to take up positions.
4. We come to this conclusion that retail investors are nibbling because of the “steadiness” of lower liners. They seem to be garnering some support and refuse to drop further. For instance, TITAN, LIONIND, MEDIA, UNISEM, GTRONIC, GAMUDA, SUPERMX, TOPLGOV, PLS. TIMECOM.
5. There are even lower liners like XINQUAN that breakout of a consolidation to rally.
6. Unless the Dow makes a top and starts to U-turn down (which we are of the opinion), then it is possible that our KLCI and stocks can remain steady to higher.
7. But note that the 1331 resistance has to be exceeded.
8. Selective stocks can rally and our choice today is: 3A, AXIATA, AXIATA-CC.
9. These lower targets of 1233-20/1154/1031 can still be achieved in the near future.
10. The ringgit weakened to 3.2020 from 3.1980.
11. The KLCI’s down targets are 1224/1154/1033.
12. Up targets are 1335 and 1349.


CONCLUSION: Only the KLCI is above the Ichimoku clouds! The whole world’s (almost) indices like the DJIA, DAX, CAC, Singapore, Hang Seng Shanghai, Nikkei 225, Australia All Ords index are below Ichimoku charts. The world stock markets are weak indeed. With such pressure bearing down on Malaysia, we are doubtful if the KLCI can keep its level without succumbing to the world’s market crashing. It is a matter of time before our market corrects and sharply too. Observe the Dow closely. Any plunge below the neckline is a “short” for all indices.
Upside Targets: 1365/1418 (Revised targets on 21/06/10)
Immediate downside targets: 1224/1154/1094/1033 (Revised on 5/07/10)
Ichimoku chart: Span A SUPPORT: 1292 (Revised on 5/7/10)

CHART OF THE THE DAY(June 15, 2010)

STOCK MARKET OUTLOOK: Look for 62% Fibonacci resistance at 1308

for KLCI but overall, world equity markets still viewed as technically weak.

On Monday’s close the KLCI was up by 2.49 points or 0.19% at 1297.16 on lower volume of 502 millionshares traded. Advancers led decliners by 302 to 242 with 269 stocks unchanged.
1. Stocks rose for a fifth day, U.S. index futures gained and commodities rallied on speculation government reports this week will show the global economic rebound is continuing. The yen weakened and bonds fell, according to Bloomberg.
2. The Dow was up 38 points to 10,211 last Friday and this rubbed off onto Asian stocks.
3. Yesterday all Asian equity market rose except for Australia.
4. With this continuous rally over the past six sessions, investors are now hopeful of a recovery of the U.S., Europe and Asian stocks in line with speculation of a global economic rebound.
5. Malaysian investors reacted positively to the Dow’s and Asian rally and situational stocks like FABER, KPJ, UNISEM, GENP, SPSETIA, GENP, MBSB faired pretty well and were amongst the top gainers for the day.
6. However, the volume did not reflect that buyers were aplenty. At best, I would say our gainers were propped up by some institutional funds whilst the lower liners are still struggling to stay afloat due to a lack of buyers.
7. Those of you who want to be participating in this short term rebound should be careful not to be overly bullish.
8. Our picks for today are: FABER and KPJ.
9. There are also BOUSTEAD, MBSB, MEDAINC and MTD but we are not picking them as the overall climate is still bearish as price is still below the Ichimoku clouds.
10. If you are short stock index futures, look to cut loss at 1310 OH as the 62% resistance is 1306.
11. The ringgit strengthened from 3.2500 from 3.2810.

CONCLUSION: The Dow, Hang Seng, Singapore and KLCI Ichimoku charts remain below the clouds suggesting that these markets are still in a bear phase. In spite of the rebound we saw yesterday, the indices are ALL below the clouds. My conclusion is, therefore, I am bearish and it is sell market since the 50%-62% rebound level was hit but be careful if you short index futures as buy-stop is at 1310 OH.

Upside Targets: 1283(hit), 1297 (hit)/1308 (Revised targets on 3/06/10)
Immediate downside targets: 1224-00/1154/1033 (Revised on 20/05/10)
Ichimoku chart: Span A resistance: 1288/92 (Revised on 2/03/10)

KLCI: STAY ASIDE: POSSIBLE CORRECTION/NO BUY SIGNAL

CHART OF THE THE DAY(June 07, 2010)

STOCK MARKET OUTLOOK: : KLCI to gap down on what could be the second leg of the down trend. Market crashing. Do not touch Kenmark.

On Friday’s close the KLCI was down by 0.05 points or 0.00% at 1294.39 on lower volume of 674 million shares traded. Advancers led decliners by 313 to 275 with 277 stocks unchanged.
1. Ok there were more advancers than decliners on Friday trading. But we observed that volume was low which suggest that buyers were not strong.
2. Most importantly price remained stagnant on a small range day. A ‘doji’ candle was formed, suggesting “uncertainty”.
3. As well the KLCI stopped at the 50% resistance level of 1297 without closing above it. It closed at 1294.39.
4. All this suggests that the local market especially the KLCI, has hit a major resistance of 50% at 1297.
5. A “bear flag” can be drawn from recent activity. A bear flag spells of potential weakness. Any break and close below 1281 is a confirmed sell signal for the KLCI and stocks in general.
6. KEURO may succumb to the overall weakness of the market, hence we are raising stop loss to 0.80 or lower to exit. It may not hit 0.98 sen.
7. Last week, a little known stock called KENMARK made headlines with its sudden and sharp price plunge from 0.83 on 25/5 to 0.035 sen by 1/6 accompanied by huge selling volume that even exceeded its share capital of 181.7 million shares!
8. Then at about the lowest level of around 0.04 sen, One Datuk Ishak Ismail and company came in to mop up at least 32% of the shares between June 1 and 2 at firesale prices of between 0.035 and 0.06 sen!
9. To those of you who have studied the Wyckoff Method, this is a text book case of the Composite Man using the news media, and insider conniving strategies to cause public panic triggering all and sunder (including brokerages and banks who were holding Kenmark shares as collateral) to “dump” Kenmark shares at or near to its lowest point from 0.035 – 0.06.
10. And at about the lowest point, guess who came in to mop up the shares? The Composite Man! This Composite Man must be investigated by the Securities Commission, Bursa Malaysia and they must bring those responsible for this classical manipulation move used by the likes of Jesse Livermore since the 1900s to book. This is a long forgotten classical technique taught by Richard D. Wyckoff and it is now taught in a technical analysis course offered by the Open University Malaysia-IPD.
11. The authorities should have suspended this counter when it went limit down to 0.33 on 27/5/10 although on small volume of 1.5m shares. It should be suspended because 27/5/10 was a very bullish day when most counters went up. The KLCI was up 21 points to 1269. Why is Kenmark plunging on a bullish day? But Kenmark was not suspended till 31/5/10 but by that time it closed at 0.105 and 71.9 million shares changed hands. Obviously involved banks and brokerages houses were cutting losses as they read the headline news of Kenmark closing shop. That is another of the Composite Man’s fingerprint!
12. The authorities’ suspension on 31/5 was late but nevertheless was a correct decision.
13. But why did they lift the suspension so soon I am baffled. They lifted the suspension on 1/6/10 and allowed Kenmark to resume trading. By doing that it allowed the Composite Man to mop up more shares at firesale prices. Remember the buy on panic strategy?14. By June 1, 191m shares changed hands and price closed at 0.06 sen. By 2/6 it closed at 0.115 with 138m shares changing hands and by 4/6, Kenmark gapped up 0.09 sen to close at 0.26 sen with 101m shares changing hands. This means that the Composite Man would have made a cool floating or realized profit of at least RM11 million!
15. In my opinion, the authorities should NOT have lifted Kenmark’s suspension of 31/5/10 pending further investigations. Richard D. Wyckoff’s Composite Man Theory was at work then and still is at work if only people knew it.
16. My view is that the authorities should re-suspend this counter from Monday June 7 and do not allow the Composite Man to further their campaign till further investigations have been conducted to confirm there is no foul play, which I doubt. (For chart of Kenmark and the sequence of events, please see Excel spreadsheet). Otherwise a lot of investors are going to get hurt. Sad to say it is the banks and brokerages who are the ones who were hurt the most by this Composite Man!
17. Other than my view on the authorities handling of Kenmark’s price decline, there are no stocks to watch this Monday.
18. Instead I expect stocks to decline especially with the 300+ drop on the Dow on Friday.
19. The Ichimoku charts of the CAC, DAX, FTSE UK, DJIA, S&P 500, Nasdaq, Hang Seng, Australia, Shanghai, Singapore, KLCI charts continue to remain below the clouds, even with the recent rebounds, suggesting the markets are already in bearish mode. There may be a temporary rebound in the near term but soon or late a downtrend should resume. Be ready to short index futures.
20. The ringgit strengthened to 3.2630 from 3.2950.

CONCLUSION: The Dow, Hang Seng, Singapore and KLCI Ichimoku charts remain below the clouds suggesting that these markets are still in a bear phase. In spite of the rebound we saw yesterday, the indices are ALL below the clouds. My conclusion is, therefore, I am bearish and it is sell market since the 50%-62% rebound level was hit yesterday and short index futures.
Upside Targets: 1283(hit), 1297 (hit)/1308 (Revised targets on 3/06/10)
Immediate downside targets: 1224-00/1154/1033 (Revised on 20/05/10)
Ichimoku chart: Span A resistance: 1288/92 (Revised on 2/03/10)

KENMARK 15 MINUTE CHART: FROM 25/5/10 - 4/6/10
THE INVISIBLE HAND OF THE COMPOSITE MAN IN KENMARK!

CHART OF THE THE DAY(MAY 27, 2010)

STOCK MARKET OUTLOOK: Expect a technical rebound today possibly to 1270/1285 but sell on rally as market has not bottomed yet.

On Wednesday’s close the KLCI was down by 1.19 points or 0.10% at 1248.94 on higher volume of 929 million shares traded. Advancers led decliners by 426 to 320 with 265 stocks unchanged.
1. Stocks rebounded, after yesterday’s slide drove the MSCI World Index to a nine-month low, and commodities rallied as gains in U.S. durable-goods orders and home sales added to evidence economic growth is improving, reported Bloomberg.
2. Asian markets rebounded yesterday also because of a recovery in the Dow, which closed lower by a mere 22 points to 10066 after an intra-day plunge of 292 points to test 9774 at one stage of the day. That rebound from 9774 to close back above the 10000 level triggered a gap-up in our KLCI by 6 points and 15 points for the futures market! We had expected the Hang Seng index’s drop of 682 points to cast a bearish tone on the Dow but the Dow recovered.
3. Following Dow’s rebound, Hong Kong was up 1.11%, Singapore up by 1.71%, Taiwan up 1.14%, Korea up 1.36%, Australia up 1.03%. It is only Malaysia that is down by 0.10%.
4. Our market traded within a tight range yesterday for both the cash market and futures, closing with a“bullish harami cross” for the KLCI futures and a slightly lower low for the KLCI.
5. As world stock markets are now oversold, I expect a technical rebound coming from the Dow, through to European indices to Asian indices. Even though the indices are below Ichimoku charts, they have fallen too much, and are due for technical rebounds.
6. Traders can do two things.
7. Aggressive traders can call for a “speculative buy” and “sell on rally” as prices rebound. Our KLCI may rebound back up to 1285 (38% Fib resistance) or 1309 (62% Fib resistance) But the 50% rebound resistance of 1297 may also be possible if 2008 repeats itself. Note from the KLCI 2008 chart (see excel spreadsheet) that we may be in a similar scenario as 2008, dropping sharply and then rebounding.
8. Many stocks are now considered technically oversold (where stochastic is below 20, RSI below 30 and CCI below -100).
9. Aggressive traders may like to pick up some stocks for a technical rebound that may last till 1285-1297-1309?
10. The stocks are: ZELAN, KKB, BURSA, CIMB, OSK, COASTAL, HIAPTEK, KINSTEL, AIRASIA*, KENCANA.
11. Conservative investors on the other hand MAY NOT WANT TO BUY YET.
12. This rebound of yesterday could well be short lived, and we see another fall today.
13. Any fall below 1247.35 on the KLCI and below 1240.5 in the May futures would mean further bearishness and re-entry of “shorts”.
14. The Ichimoku charts of the CAC, DAX, FTSE UK, DJIA, S&P 500, Nasdaq, Hang Seng, Australia, Shanghai, Singapore, KLCI charts continue to remain below the clouds, suggesting the markets are already in bearish mode. But a temporary rebound happen in the near term.
15. In short, we expect the Asian, Europe and U.S. markets to remain weak and we are sidelined as a result for now. We will not re-enter until the Malaysian stocks trigger buy signals based on our CBO 20-10 system.
16. The ringgit strengthened to 3.3170 from 3.3620.

CONCLUSION: The Asian markets rebounded after the Dow unfolded a long legged “doji” pattern the day before yesterday. Asian markets rebounded in line with the Dow. Asian markets are still taking the cue from Dow. Therefore traders will need to look at Dow’s close to get an indication of the Asian markets’ direction. Hong Kong’s index is also a good cue for Malaysian stocks and futures. It is important that Dow must not fall
below 9774 last night. If so, we can expect our market to fall further, and all the above analysis will be premature.!!! For our KLCI to rebound, Dow must stage a positive close on Wednesday.
Upside Targets: 1360/1436/1463/1524 (Revised targets on 5/3/10)
Immediate downside targets: 1224-00/1154/1033 (Revised on 20/05/10)
Ichimoku chart: Span A resistance: 1288/92 (Revised on 2/03/10)

THIS IS A 2008 CHART OF KLCI
ARE WE REPEATING 2008 REBOUND OF 50% (TO 1443) BEFORE ANOTHER FALL?

THIS IS A CURRENT CHART OF KLCI (2010)
WILL WE SEE A SIMILAR REBOUND LIKE 2008? OF SO, LOOK FOR 1297 AREA TO STOP ADVANCE

CHART OF THE DAY (MONDAY=17/05/2010)

STock Market Outlook: Good for May 17,2010

STOCK MARKET OUTLOOK: KLCI beginning to show signs of jitters.
Possible weakness if Asian markets react to weak Dow on Friday.

On Friday’s close the KLCI was down by 7.62 points or 0.57% at 1339.30 on slightly lower volume of 682 million shares traded. Decliners led advancers by 371 to 293 with 260 stocks unchanged.

1. The Dow Went down 162 points on Friday to close at 10,620, while the UK Footsie index, French CAC and German DAX lost even more, between 3 to 4 %. 2. The reason behind this weakness is because of renewed concerns that Greece’s sovereign debt crisis will trigger a breakup of the European currency. 3. With the world’s equity indices all falling one after another, how long can our Malaysian index stand? 4. So far, our index has been very impressive. But like I said, no country is an island. 5. For now, our finance stocks like CIMB, PBBANK, MAYBANK, HLBANK, RHBCAP, and even AFFIN still managed to stay firm. 6. So are stocks like KKB, AXIATA, TM, TNB, etc. 7. So as long as their stops are not hit, these stocks remain a “hold”. 8. But lower liners and others that have “S.A.’ or “Stay Aside” in our “REC” column means that these stocks are not to be touched. 9. In short we are not calling a “buy” on Monday. 10. The lower KLCI even suggests that this could be the start of weakness for our KLCI. 11. But I must admit that our Malaysian KLCI is currently one of the strongest “bourse” in the world” as you can see that it is still above the “clouds”. 12. The Ichimoku charts of the CAC, DAX, FTSe UK and DJIA charts in the excel spreadsheet continue to remain below the clouds, suggesting the markets are already in bearish mode. 13. So in short, we expect the Asian, Europe and U.S. markets to remain weak and we are sidelined as a result for now. We will not re-enter until the Malaysian stocks trigger buy signals based on our CBO 20-10 system. 14. The ringgit strengthened to 3.1920 from 3.1980.
Ichimoku chart: Span A resistance: 1288/92 (Revised on 2/03/10)

KLCI: STAY ASIDE/GOING TO GET BEARISH/BUY @ 1350 OR HIGHER

DOW ICHIMOKU CHART: WEDGE BREAK DOWN / WEAK

HANG SENG INDEX ICHIMOKU CHART: BELOW CLOUDS/L/T WEAK

CHART OF THE DAY(TUESDAY APRIL 6, 2010)

STOCK MARKET OUTLOOK: GOOD FOR APRIL 6, 2010

KLCI stocks stage powerful rally. Expect further rallies but take profiton rally and buy on dips as price get volatile.
On Monday’s close the KLCI was up by 5.81 points or 0.43% at 1341.75 on higher volume of 1.05 billion shares traded. Advancers led decliners by 403 to 322 with 289 stocks unchanged.
1. Syndicates are actively pushing stocks. Yes, banking stocks especially, and many GLC linked
companies, motor stocks, infrastructure stocks, and selective industrial stocks.
2. This is the bull run that is going to make you the money.
3. You should be feeling it already.
4. Notice your stocks are rising without much resistance.
5. This is one of the hallmarks of a bullish market. There just isn’t much sellers to trap you.
6. One stock is breaking out of a consolidation after another, only to fall back into a short consolidation and breaking out again. These short consolidations are known as “flags” or “pennants”. Some are “Triangles” but unmistakably they are continuation patterns that would lead to higher prices.
7. It is clear that this market is getting to move higher.
8. We have many stocks-to-watch today. They are: GAMUDA, JAKS, KKB*, PROTON, TCHONG*, AFFIN*, CIMB*, ECM, HLBANK*, OSK*, PBBANK*, RHBCAP*, TIMECOM, LMCEMENT, LIONIND*, SCOMI, WASEONG*, SUNCITY*, BJCORP, DAYANG*, FABER, PROTON-CB, TCHONG-CA, HLFG.
9. But of they stage a strong breakout, do take some profits, and buy back on dips (if they dip!).
10. Try not to buy in the early morning because they tend to correct back down by 10.30am. Buy either around 10.30anm or 3.30pm.
11. I don’t see much strong correction until they have moved to test 1397.
12. Expect more good rallies. This is the stretch to make money. You should be in the market by now. But remember to take profits.
13. The Ichimoku chart continues to stay bullish suggesting this market is going to go up.
14. The ringgit is strengthening against the dollar, which is why our stocks should be holding.
CONCLUSION: The KLCI is back up above 1300. There is a chance that KLCI can rally further. We are back in business as the KLCI is above 1308. Note the Ichimoku chart is still bullish.
Upside Targets: 1360/1436/1463/1524 (Revised targets on 5/3/10)
Immediate downside targets: 1300/1208/1136/1030 (Revised on 5/02/10)
Ichimoku chart: Span A resistance: 1288/92 (Revised on 2/03/10

KLCI: HOLD/FURTHER BUY/NEW HIGH SINCE 29/2/2008

GAMUDA: H/FURTHER BY/SYMMETRICAL TRIANGLE B.O.

HLBANK: H/STRONG BUY/ASCENDING TRIANGLE B.O./TGT 9.40/10.40

TIMECOM: ACCUMULATE: SYMMETRICAL TRIANGLE B.O./TGT 0.68/0.80

LIONIND: STRONG BUY/SYMMETRICAL TRIANGLE B.O./UP-GAP/TGT 2.19/2.65

CHART FOR THE DAY (March 8, 2010)

PI DAILY COMMENTS FOR MONDAY, MARCH 08, 2010: KLCI has turned bullish with close above Ichimoku cloud of 1293. Turn long on KLCI and selective lower liners.

NEW STOCKS-TO-WATCH: D&O.
STOCKS WITH SELL SIGNALS: NIL.
STOCKS WITH TAKE PROFIT SIGNALS: NIL.
EXISTING STOCKS-TO-WATCH (Buy): MUDAJAYA, PROTON, MAYBANK, PBBANK*, RHBCAP, LIONIND, PARKSON, GENP, LBS, PJDEV, FABER.
HOW TO TRADE ON MONDAY (MAR 08 2010):
Aggressive trader Buy: D&O, MUDAJAYA, PROTON, MAYBANK, PBBANK*, RHBCAP, LIONIND, PARKSON, GENP, LBS, PJDEV, FABER.
Conservative trader: NIL.
LONG TERM INVESTOR: S.A./HOLD IF STOP LOSS NOT HIT/SELL IF STOP HIT!
STOCK MARKET OUTLOOK: KLCI has turned bullish with close above Ichimoku cloud of 1293. Turn long on KLCI and selective lower liners.

On Friday’s close the KLCI was up by 15.69 points or 1.22% at 1299.78 on higher volume of 941.6 million shares traded. Advancers led decliners by 547 to 194 with 236 stocks unchanged.

1. Our view is now changed to BULLISH for KLCI linked stocks and selected lower liners.
2. This is due to the change in the Ichimoku charts to predominantly bullish both for the short and the long term.
3. The longer term “chikou span” is now neutral but the shorter term tenkan-span is now greater than the “kijun-span”, which suggests short term bullishness. As well price is above the “kumo” or clouds.
4. Banking AND PROPERTY and selective Lion group stocks are strong.
5. They are MUDAJAYA, PROTON, MAYBANK, PBBANK*, RHBCAP, LIONIND, PARKSON, GENP, LBS, PJDEV, FABER.
6. New stock is D&O.
7. Moving average crossover (10-50 SMA) which is a reliable trend following indicator, has now triggered a buy signal. Turtles system has also triggered a buy, and the Ichimoku chart is BULLLISH.
8. Most if not all indicators are now pointing to a bull market.
9. As such Right now I am bullish about our market
10. The U.S dollar is strengthening and that is probably one of the reasons for the sell-off in stocks. Dollar is not expected to weaken as such be wary about stocks, commodities, etc all of which would react adversely to a rise in the dollar.

CONCLUSION: The KLCI is now LONG. Our market has reversed back to being BULLISH. Go long.

PROTON: H/FURTHER BUY/SYMMETRICAL TRIANGLE

MAYBNK: H/FURTHER BUY/TGT 8.00/9.45

CHART FOR THE DAY (26-01-2010)

KLCI: HOLD/EXPECT REBOUND

PJDEV: AVERAGE BUY/ RESISTANCE TURNED SUPPORT

TALAM: H/FURTHER BUY.TGT 0.22/0.33

CHART FOR THE DAY(07-01-2010

KLSE STOCK MARKET OUTLOOK FOR JANUARY-FEBRUARY

2010 based on a popular 3-year cycle.

We may be reliving a 3-year cycle. In Jan-Feb 2007, we saw a rally of 14.8%. We may see same these two months!

Written on 6-1-2010 (Valid for Jan-Feb 2010):

On Tuesday close (5/1/10) the KLCI was higher by 12.49 points or 0.98% at 1288.24 on relatively high volume of 1.86 billion shares traded. Advancers led decliners by 658 to 184 with 180 stocks unchanged.
1. If the first trading day of this decade started with a “bang”, then yesterday’s performance was the best we have seen since 2007.
2. This reminds me of the stock market’s 3-year cycle theory. What we saw yesterday, with “so many” buy signals (99 stocks to be precise) based on our CBO 20-10 system is “scary”.
3. Who would dare to buy today after such a bullish day yesterday? The typical reaction today is to expect a correction because 99 buy signals yesterday (or 658 advancers) is just too much for this market to continue rallying. Yes, many of us are not really used to it. In fact I don’t think the new traders amongst you have seen this type of bounce with so many buy signals. I ran a check on my daily “buy” signals records way back 4 years and I found out that it was only in 2007 that we witnessed that our market can sustain such high number of buy signals without “crashing”. In 2007 the highest number of buys (based on CBO 20-10 buy signals) was 366 before the market crashed in the next couple of days. The 366 stocks with buy signal day was 22 Feb 2007.
4. If history repeats itself, and this is a BIG “if”, then you can expect this “January-February” Effect to last from now till Feb 21, 2010 and again “if” history repeats itself, then we could experience a similar 14.8% gain (from 4/1/10’s close of 1275) and that would work out to test a new one-year high of 1463.
5. Ok, if the above confuses you, don’t worry; just take it that if history repeats itself we could be in for a powerful Jan-Feb rally to test a possible high of 1463 by Feb 21, 2010.
6. And if you believe this to be “possible”, then go and buy the stocks I mentioned herein today.
7. It seems “a lot” of stocks, but if I am correct, I believe this market today can absorb this kind of volumes and yet the number of “CBO buy” signals can still be sustained. It will come to a breaking point only at 366 or thereabouts.
8. Ok so the stocks-to-watch for today (Kindly subscribe to our Daily Newsletter @ PI Graduate Studies or call Dylen at 014-9237001/03-21455877
9. I suggest strongly that you go through the charts and pick the ones that are most comfortable to you based on your capital base that you have and the risk appetite that you can stand.
10. Good luck! Note that rubber manufacturing stocks are also experiencing super bull runs. Look into these stocks as well!
11. The long term Ichimoku chart is bullish as three out of three indicators from the Ichimoku charts (the Chikou span, Tenkan-Kijun-sen and kumo) have turned bullish.
12. For gold we have turned long at 1143.
13. The U.S dollar is weakening now and we are mostly selling dollars and buying foreign currencies. Thus a strong stocks market is expected with this weak dollar. We are turning long on GBP, EURO, AUD and NZD.
CONCLUSION: The KLCI has turned bullish once again. The KLCI has triggered a Turtle system
(conservative) buy signal at 1273.31. Short term (CBO 2-2) there is already a buy signal. Expect to see the KLCI move higher. Buy stock index futures. BUY GOLD FROM 1143. We see new KLCI target at 1463.
Upside Targets: 1305/1436/1463/1524 (Revised targets on 4/1/10)
Immediate downside targets: 1233/1200 (Revised on 19/11/09)
Ichimoku chart: Span B support: 1212 (Revised on 30/11/09)

KLCI IN 2007: WE MAY BE REPEATING JAN 2007 RALLY?

KLCI: PREDICTION THIS JAN - FEB 2010: MAY HIT 1463

IF WE REPEAT JAN-FEB 2007 RALLY