Saturday, March 21, 2009

Weekly Analysis

KLCI Daily Chart

KLCI shows a rebound in progress. If it can go above 880, then the rising wedge formation may be invalid. If the rising wedge formation is invalid, it could mean that KLCI is trap within the trading range 830-930. Situation keeps changing, with the higher probability of breaking 800.

Looking at the various sectors in KLSE:
Malaysia Longterm Midterm Shorterm
KLCI Down Down Neutral (+)
Finance Down Down Down
Construction Down Down Neutral (+)
Plantation Down Neutral Neutral
Property Down Down Down
Mesdaq Down Down Down
2nd Board Down Down Down

Pay attention to the plantation sector. It may stage a rally if the cpo breaks above RM2,000. Is commodity price going to improve in this recession climate? Logically, I don't think so. But we cannot say on what the irrational traders will do. Anyhow, IOICorp and KLK CW can be a good play if the rally happens.

Looking at worldwide markets:
World Longterm Midterm Shorterm
S&P500 Down Down Neutral
DJI Down Down Neutral
NasdaqComp Down Down Neutral
Nikkei 225 Down Down Neutral
Kospi Down Neutral (+) Up (+)
SSECI Down Neutral Up (+)
HSI Down Down Neutral
TWII Down Neutral Up
STI Down Down Neutral
SENSEX Down Down Neutral
FTSE Down Down Neutral
DAX Down Down Neutral

I'm not sure yet whether the market will plunge when the new toxic plan is unveil next week.

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