My system relies on the lagging indicator (i.e. EMA). Therefore, I can only say that a turning point has occurred only after the fact. So, today, I'm going to say that KLCI has hit the top and will now start to move down, gradually at first, but will pick up speed later on (just like a rolling train). Red flags that I see:
- Weekly RSI has shown bearish divergence.
- Weekly uptrend RSI has been broken.
- Weekly MACD has gone into negative territory.
I managed to get out of my construction counters with some skin left. It was really a bruising punch. I'm not buying calls anymore. In fact, I'm looking at puts now. There are not many puts out there in Bursa Malaysia, I think that you can guess which one I will go long.
So, enjoy your long weekend and hope that we will not turned into Thanksgiving turkeys come Monday.
|FBM KLCI||Up||Up||Neutral (-)||R=1.3k, S=1.2k.|
|Finance||Up||Up||Neutral (-)||R=11k, S=9.5k.|
|Construction||Up||Neutral (-)||Down (-)||R=250, S=220. Serious correction|
|Property||Up||Neutral||Down||R=820, S=760. Correction|