Thursday, November 26, 2009

Bursa Malaysia Weekly Summary

FBM KLCI Weekly Chart

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:
  1. Weekly RSI has shown bearish divergence.
  2. Weekly uptrend RSI has been broken.
  3. Weekly MACD has gone into negative territory.
With this Dubai default, KLCI should correct towards 1100-1150. Finance and construction has started to roll over. If the panic continues, this will spread to other counters. In fact, the last hurrah was the penny counters that was deliberately pushed up.

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.

Malaysia Monthly Weekly Daily Note
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
Plantation Up Up Up R=6.4k, S=5.8k.
Property Up Neutral Down R=820, S=760. Correction

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