World Market Weekly Summary

Monthly charts are now pointing up (except for Japan & SSE). Daily chart shows some weakness, indicating profit taking is just around the corner. The Fed is determined to print for money (QE2), that is why the dollar is sinking. Anyhow, daily chart for the Dollar Index is very oversold, therefore, a rebound is imminent. However, the weekly chart indicates that the Dollar Index still has room to fall.

Summary:

World	Monthly	Weekly	Daily
S&P500	Up (+)	Up	Up
DJI	Up (+)	Up	Up
NasdaqComp	Up (+)	Up	Up
Nikkei 225	Down	Neutral	Neutral (-)
Kospi	Up	Up	Up
SSECI	Down	Neutral (+)	Neutral
HSI	Up	Up	Up
TWII	Up	Up	Up
STI	Up	Up	Up
JKSE	Up	Up	Up
SENSEX	Up	Up	Up
AORD	Up (+)	Up	Neutral (-)
NZX50	Up (+)	Up	Neutral (-)
FTSE	Up (+)	Up	Up
DAX	Up	Up	Neutral (-)
RTSI	Up	Up	Up
Bovespa	Up	Up	Up

Bursa Malaysia Weekly Summary

KLCI Weekly Chart

KLCI: Still in overbought zone. Daily chart still show weakness. A stronger correction should take it down to 1440.

Construction Sector Weekly Chart

Construction: Looks like it has clearly broken to the upside. Next resistance is at around 285. It seems that the market doesn't care whether the government has money to built more infrastructure. One suggestion to Mr. Prime Minister: List Petronas at Bursa Malaysia. Everyone will love it!

Sector summary:

Malaysia	Monthly	Weekly	Daily
FBM KLCI	Up	Up	Up (+)
Finance	Up	Up	Up (+)
Construction	Up	Up	Up
Plantation	Up	Up	Up (+)
Property	Up	Up	Up

6 New Call Warrants

Warrant time again! 6 new call warrants from OSK will be listed on 30 Sept 2010:

New Warrants	Expiration	Type	Ex Price	Ratio
BURSA-CQ	27/09/2011	Call	MYR 7.8000	8 : 1
PROTON-CD	27/09/2011	Call	MYR 4.6000	7 : 1
TENAGA-CQ	27/09/2011	Call	MYR 8.5000	10 : 1
RHBCAP-CD	27/09/2011	Call	MYR 6.5000	8 : 1
CIMB-CJ	27/09/2011	Call	MYR 8.0000	10 : 1
GENTING-CU	27/09/2011	Call	MYR 10.0000	10 : 1

8 New Warrants

4 new call warrants from AM will be listed on 28 Sept 2010:

New Warrants	Expiration	Type	Ex Price	Ratio
QL-CA	14/09/2011	Call	MYR 4.5000	6 : 1
PROTON-CE	14/09/2011	Call	MYR 4.8500	8 : 1
SAPCRES-CB	14/09/2011	Call	MYR 2.3800	3 : 1
KENCANA-CD	14/09/2011	Call	MYR 1.5000	3 : 1

4 new warrants (1 call, 1 put, 1 bull, 1 bear) from CIMB will also be listed on 28 Sept 2010:

New Warrants	Expiration	Type	Ex Price	Ratio	Call Price
HSI-CD	29/09/2011	Call	20,000.00	3000 : 1
HSI-H2	29/09/2011	Put	20,000.00	3000 : 1
HSI-J1	29/06/2011	Bull	16,964.00	3000 : 1	18,024.00
HSI-K1	29/06/2011	Bear	25,446.00	3000 : 1	24,386.00

Interesting Charts: Property

Can BNM curb the steep rise in property price? Money always flow to an asset that the investor/speculator thinks that he can make money. For Malaysian, it is either the stock market or property. Since so many people still remembers the 1997/1998 crash, the natural choice for people in that era is property. Is property a bubble? Well, do you know anyone that have to queue up overnight to buy a house? If the answer is no, then it is not in a bubble phase yet.

Anyhow, keep a look out at the property stocks, it could still run up due to the inflation expectation.

SPSetia Weekly Chart

SPSetia: Broke out from a triangle pattern, tested the breakout point and it seems that it is now going up again. If it can break 4.70, then the next resistance is at 5.20.

IJMLand Weekly Chart

IJMLand: Trapped in a flag pattern. A look at the weekly RSI indicates that it could soon break out from this pattern. Breakout point is 2.50.

IGB Weekly Chart

IGB: Looks like accumulation for the past 3 months. Could be making a move soon.

Glomac Weekly Chart

Glomac: The pattern is similar to SPSetia. Resistance is at around 1.65-1.75.

E&O Weekly Chart

E&O: Trying to breakout. Weekly RSI indicates that this is going to happen soon.

Disclosure: Long SPSetia, IJMLand and E&O.

World Market Weekly Summary

It seems that the inflation play is now on! Commodities are all performing very well now. In a fiat currency system, one can always devalue the currency to prevent deflation. If Uncle Ben cannot kill the deflation threat will bullets, then he is sure going to bomb it out!

Dollar Index Futures Weekly Chart

Look at the Dollar Index chart, it indicates that the USD is gonna have another selldown. We should be seeing MYR under 3 to a USD by end of this year. Hopefully, imported goods will be more affortable for us.

World market summary:

World	Monthly	Weekly	Daily
S&P500	Neutral	Up	Up
DJI	Neutral	Up	Up
NasdaqComp	Neutral	Up (+)	Up
Nikkei 225	Down	Neutral	Up (+)
Kospi	Up	Up	Up
SSECI	Down	Down (-)	Neutral
HSI	Up	Up	Up
TWII	Up	Up	Up
STI	Up	Up	Up
JKSE	Up	Up	Up
SENSEX	Up	Up	Up
AORD	Neutral	Up	Up
NZX50	Neutral	Up	Up
FTSE	Neutral	Up	Up
DAX	Up	Up	Up
RTSI	Up	Up	Up (+)
Bovespa	Up	Up	Up

Bursa Malaysia Weekly Summary

KLCI Weekly Chart

A bearish reversal candle in the weekly chart. Not a good sign! Today's high volume indicates that the baton is now being passed from bluechips to penny shares. When penny shares are hot, it signals the beginning of the end! 4 more trading days left for the fund managers to window dress their 3rd quarter account. What will happen after that? A correction before the year end window dressing?

Sector summary:

Malaysia	Monthly	Weekly	Daily
FBM KLCI	Up	Up	Neutral (-)
Finance	Up	Up	Neutral (-)
Construction	Up	Up	Up
Plantation	Up	Up	Neutral (-)
Property	Up	Up	Up

By the way, this fengshui index chart that I posted on 14 Feb 2010 looks very interesting. The chart does correlate with HSI & KLCI. Better don't short the market!

International Reserves of BNM

Date	MYR (billion)	USD (billion)
30-Aug-10	311.3	95.2
15-Sep-10	313.3	95.9

Source.

World Market Weekly Summary

More upgrades than downgrades. The market just refused to die. JKSE, Kospi and Sensex are the superstars!

World	Monthly	Weekly	Daily
S&P500	Neutral	Up (+)	Up (+)
DJI	Neutral	Up	Up (+)
NasdaqComp	Neutral (+)	Neutral	Up (+)
Nikkei 225	Down	Neutral (+)	Neutral
Kospi	Up	Up	Up
SSECI	Down	Neutral	Neutral (-)
HSI	Up	Up	Up
TWII	Up	Up	Up
STI	Up	Up	Up
JKSE	Up	Up	Up
SENSEX	Up	Up	Up
AORD	Neutral (+)	Up (+)	Up
NZX50	Neutral	Up (+)	Up
FTSE	Neutral	Up	Up
DAX	Up	Up	Up
RTSI	Up	Up	Neutral (-)
Bovespa	Up	Up	Up

Bursa Malaysia Weekly Summary

KLCI Weekly Chart

Daily, weekly and monthly chart is in overbought zone. No bearish divergence detected. If you have missed the strongest sector (i.e. finance), then maybe you can catch the tail wind of the the weakest sector (i.e. property and construction). Good luck!

Sector summary:

Malaysia	Monthly	Weekly	Daily
FBM KLCI	Up	Up	Up
Finance	Up	Up	Up
Construction	Up	Up	Up
Plantation	Up	Up	Up
Property	Up	Up	Up (+)

Interesting Charts: Construction

Salcon Weekly Chart

Salcon: May have broken it's downtrend line which was formed since listing day! This makes you wonder what type of IPO junk they throw to the retailer.

MRCB Weekly Chart

MRCB: Moving within a uptrend channel. Now almost at the upper-side of the channel.

WCT Weekly Chart

WCT: Consolidated for 14 months at the 2.50-2.80 range. A false break in April 2010. Is this for real now?

IJM Weekly Chart

IJM: Looks like it has broken its downtrend line. The next one is the upper-side of a rising flag.
A close above 5.20 should allow it to zoom up to 6.40.

Gamuda Weekly Chart

Gamuda: This is the leader in the construction sector. Next resistance is around 4.00.

Disclosure: Long in IJM and Salcon.

6 New OSK Call Warrants

6 new call warrants from OSK will be listed on 15 Sept 2010:

New Warrants	Expiration	Type	Ex Price	Ratio
AIRASIA-CI	12/9/2011	Call	MYR 1.8000	2 : 1
AMMB-CI	12/9/2011	Call	MYR 5.7000	7 : 1
TM-CO	12/9/2011	Call	MYR 3.1000	4 : 1
GAMUDA-CM	12/9/2011	Call	MYR 3.3500	5 : 1
JCY-CC	12/9/2011	Call	MYR 1.0800	2 : 1
GENS-C8	12/9/2011	Call	SGD 1.7000	6 : 1

Money Makes Money

How to use your money to make money? Ok, I spent some time in looking into this issue. The result is the chart above. The chart is not 100% accurate, just a generalizations of the various instruments that I know of. The difficult part is the derivatives. There are so many variants and I don't understand most of them.

Any comments are welcomed.

World Market Weekly Summary

Market just cannot drop. Most probably too much money chasing for yield. My speculation is that US banks are not lending because the economy still sucks. So, to continue making money to pay off their losses, most probably they are speculating the market. What say you?

World	Monthly	Weekly	Daily
S&P500	Neutral	Neutral	Neutral
DJI	Neutral	Up (+)	Neutral
NasdaqComp	Down	Neutral (+)	Neutral
Nikkei 225	Down	Down	Neutral
Kospi	Up	Up	Up
SSECI	Down	Neutral	Up
HSI	Up	Up (+)	Up (+)
TWII	Up	Up	Up (+)
STI	Up	Up	Up
JKSE	Up	Up	Up
SENSEX	Up	Up	Up
AORD	Down	Neutral	Up
NZX50	Neutral (+)	Neutral	Up
FTSE	Neutral	Up	Up
DAX	Up	Up (+)	Up (+)
RTSI	Up	Up	Up
Bovespa	Up	Up	Up

4 New Warrants

3 new call warrants and 1 new bull warrant from CIMB will be listed on 13 Sept 2010:

New Warrants	Expiration	Type	Ex Price	Ratio	Call Price
GENS-J1	7/6/2011	Bull	SGD 1.2800	6 : 1	SGD 1.3600
GENS-CA	7/9/2011	Call	SGD 1.4500	4 : 1
GENS-CB	7/9/2011	Call	SGD 1.7000	4 : 1
TOYOTA-C4	7/9/2011	Call	JPY 3,000.0000	100 : 1

Bursa Malaysia Weekly Summary

KLCI Weekly Chart

Uptrend now being sustained by plantation sector. When you see penny counters are in the top-10 volume, that is the sign that the trend is at the tail end.

Sector summary:

Malaysia	Monthly	Weekly	Daily
FBM KLCI	Up	Up	Up
Finance	Up	Up	Up
Construction	Up	Up	Up
Plantation	Up	Up	Up
Property	Up	Up	Neutral (-)

International Reserves of BNM

Date	MYR (billion)	USD (billion)
13-Aug-10	310.8	95.1
30-Aug-10	311.3	95.2

Source.

Interesting Charts: Oil & Gas

Kencana Weekly Chart

Sapcres Weekly Chart

Disclosure: Long Kencana

Bursa Malaysia Weekly Summary

KLCI Weekly Chart

I missed out the weekly RSI downtrend line. It seems the weekly RSI downtrend line has been broken about 3 weeks ago. That means the bearish divergence has been negated. Since weekly and daily chart are both in the overbought zone, we need to move to the monthly chart. It seems that the monthly RSI is just slightly over the overbought zone.

All sectors are positive now:

Malaysia	Monthly	Weekly	Daily
FBM KLCI	Up	Up	Up
Finance	Up	Up	Up
Construction	Up	Up	Up (+)
Plantation	Up	Up	Up
Property	Up	Up	Up (+)

If this whole thing gonna blow over, then the laggards (property & construction) must rally and then go kaboom!