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.