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!
Monday, August 16, 2010
Friday, August 6, 2010
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
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
Subscribe to:
Posts (Atom)
