Saturday, January 24, 2009

Rising wedge formation

KLCI Daily Chart

From the KLCI daily chart, we can see that we are still within the consolidation area (rising wedge formation). Currently, we are at the lower boundary. The various sectors are currently at the neutral phase based on the daily chart. I'm anticipating a big move in a week or two, either continuing the downtrend or change of trend. Based on the worsening economic situation, the continuation of downtrend has a higher chance of happening.

Malaysia Longterm Midterm Shorterm
KLCI Down Neutral Neutral
Finance Down Neutral Neutral
Construction Down Neutral Neutral
Plantation Down Neutral Neutral
Property Down Neutral Neutral (-)
Mesdaq Down Down Neutral (+)
2nd Board Down Down Down

Looking at the various world market, all of them except SSE is showing downside bias. For SSE, it looks like it is building a base.
World Longterm Midterm Shorterm
S&P500 Down Down Down
DJI Down Down Down
NasdaqComp Down Down Down
Nikkei 225 Down Down Down
Kospi Down Neutral Neutral
SSECI Down Neutral Up (+)
HSI Down Down Down
TWII Down Down Down
STI Down Down Down
SENSEX Down Down Down
FTSE Down Down Down (-)
DAX Down Down Down

Based on what I have read, I think that insolvent banks should be put to sleep. Whatever politically accepted actions that President Obama is going to take will only prolong the crisis because walking zombies will only scare everyone from the market.


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Past Expiry said...

Happy Chinese New Year cartoon: