F1 TRADER ONLINE: 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