KLCI: HOLD/EXPECT REBOUND
PJDEV: AVERAGE BUY/ RESISTANCE TURNED SUPPORT
TALAM: H/FURTHER BUY.TGT 0.22/0.33
Tuesday, January 26, 2010
Thursday, January 7, 2010
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)
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
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