Tuesday, December 11, 2012

Dow - No serious pullback in the near future

Dow gained 98 points (0.75%) after about an hour of trading. Standing at 13,268 level, Dow is only 342 points (2.5%) away from its October's high of 13,610.

It appeared to me that its major wave (5) has 9 waves. Wave (i) to wave (ix) as shown below.

It is possible that Dow is currently forming its wave (vii). So for the next 3 to 4 months, Dow is not expected to have any serious pullback. The 20% correction correction mentioned by Marc Faber may have to wait for a while until major wave (5) has completed its 9 waves.

Bursa Malaysia should be able to hold until the announcement of the 13th General Election. I do not know what will happen after the election especially if Barisan National loses the election.


No comments: