Is everything OK ?

World bourses were rather volatile in the last few days. Investors were worried about the sharp decline of Tokyo market, economy slow down in China and that the US Federal Reserve might reduce the US$85 billion per month bonds buying programme.

Looking at the 5-Year chart for Dow,

Dow has yet to complete its waves (vii), (viii) and (ix) before completing its major wave (5).

As long as Dow doesn't drop below its lower trend line, everything is OK.

Hong Kong's Hang Seng Index is forming its wave (iv) at this moment, still a long way to go before it can finish its mega wave (3).

Singapore STI is the same as Hang Seng, still a long way to go before completing its mega wave (3).

When Dow, Hang Seng and STI are OK, Bursa Malaysia should be OK, nothing to worry at this moment until Dow goes below its lower trend line that warrant a review to my current wave counts.


Inch Kenneth (Rm 0.95)

Inch Kenneth is forming a long-term inverted head-and-shoulder pattern.

It managed to break its neckline in January 2013. It also managed to stay on top of its neckline in the last 5 months, forming a a-b-c-d-e sub-wave ii. Very classical. The only question is whether mini-wave e has been completed ?

Inch Kenneth gained 3 sen with a slightly higher volume today. If it can continue to move higher tomorrow with greater volume and if it can go above 98 sen, it is possible that mini-wave e has been completed and its sub-wave iii will be heading for Rm 1.60 level (minimum target).

However, if it starts to move lower tomorrow and goes below the 92 sen level, then mini-wave e is not yet complete. It may drop to 88 sen and below to complete its sub-wave ii before starting its sub-wave iii.
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