STOCK MARKET OUTLOOK: Back to new two year high. Expect very bullish market
ahead led by banking stocks. Motor, plantation, technology also strong. Lower
liners only selective buy. Don’t simply buy.
On Wednesday’s close the KLCI was up
by 10.28 points or 0.78% at
1328.22 on higher volume of 934 million shares traded. Advancers led decliners
by 451 to 292
with 270 stocks unchanged.
1.
The bulls are back!
2.
Today, expect a strong rally
led by banks.
3.
I am bullish because at
1328.22 on the KLCI, it is a new 2 year high close – some event that we should
take note of. When stocks or and index makes a new high, watch out for higher
highs. This is especially after a “bear trap” set by the bears in January to
February this year when they bring the KLCI down to 1224 before “wacking” it
back up. That false breakdown sidelined a lot of investors. So when the KLCI
recoiled and is now making new 2-year highs, many don’t believe it and say it
don’t last. But I think it will.
4.
Look at 1436 and 1524.
5.
Our stocks were quite on
target yesterday.
PROTON*, CIMB, HLBANK, DAIBOCHI, FABER went up.
6.
Today we are seeing more of
the same and then some. Stocks-to-watch are:
PELIKAN, AFFIN,
7.
New stocks that I see that
have long term potential are: KPJ
with target of 3.77. This is a strong stock fundamentally and
technically strong too as it is making “new highs”.
8.
MAGNA also looks good based
on a “saucer” pattern whilst BSTEAD is a laggard plantation stock.
9.
Of the three new stocks KPJ is the BEST.
10.
The indicators are all
strong as the KLCI closed above the “clouds” or “kumo” and the 10 day
SMA crossed above the 50-day SMA. The longer term “chikou span” is now
BULLISH and the shorter term tenkan-span is now greater than the “kijun-span”,
which suggests short term bullishness. As well price is above the “kumo” or
clouds, which mean long-term bullish. In short, all three indicators are now
BULLISH.
11.
Right
now I am bullish about our market. Get loaded for this trip!
12.
The U.S dollar is sideways
for now and taking a breather so stocks are not so badly affected.
13.
Note that Malaysian ringgit
is expected to be strong as it is now in a Wave 3 down trend for the USD.
Expected target is 3.3040 and 3.2320. The ringgit is strengthening against the
dollar, which is why our stocks are fairing better. And stocks should get even
better as ringgit is getting stronger.
CONCLUSION:
The KLCI is now LONG. Our market has
reversed back to being BULLISH. Go long. Buy selective counters as mentioned
above.
Upside
Targets: 1360/1436/1463/1524
(Revised targets on 5/3/10)
Immediate downside
targets: 1208/1136/1030 (Revised on 5/02/10)
Ichimoku chart: Span A
resistance: 1288/92 (Revised on 2/03/10)
TRIPLE SCREEN
P.I.-System Trader (Daily) – Triggered a “buy” signal on Mar 05, 2010 at 1299.78 (Will trigger daily sell signal @ 1316.28 OL by today’s close)
P.I.-System Trader (Weekly) – Triggered a “buy” signal on Feb 28, 2010 at 1270.78 (Will trigger a weekly buy signal @ 1255.77 OH (or higher) by Friday, March 5, 2010 close).
P.I.-System Trader (Monthly) – Triggered a “buy” signal on May 4, 2009 at 1009.36 (Will trigger a monthly sell signal @ 1224.36or lower by March 31, 2010 close).
Disclaimer: This analysis is based on pure technical analysis. Statements and comments are subject to the limitations inherent in this technique of analysis and may change as the market unfolds. Those wishing to trade are advised to seek professional opinion. Our comments should not be construed as market advice and is not a solicitation to buy or sell any stock/futures referred to herein, if any PI Graduate Studies Sdn Bhd or its staff may have positions in stocks/futures covered in our newsletter.
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