Weekend Update

Dow (17,098)

Dow added only 97 points during the week. It continued to form the sub-wave v of its wave (xi). Wave (xii) correction is likely to start in September. Be extremely careful on completion of wave (xiii) in early 2015.

Wave (xiii) can be the end of major wave (5) to be followed by a higher degree 15% or more major wave (6) correction, if we are lucky.

If we are unlucky, wave (xiii) can also be the end of mega wave 1 to be followed by mega wave 2 that can drop to 10,655 level, the bottom of major wave (4), for a 40% drop. The worst that can happen is a 100% retracement to March 2009's low of 6,547 level for a 65% drop.

FBMKLCI (1,866)

KLCI is forming the sub-wave iv of its wave (v) of major wave 3. The main question is whether sub-wave iv is completed.

If KLCI continues to move higher from its current level, then sub-wave iv is completed and sub-wave v in progress.

But if KLCI continues to drop further, then it is forming the wave c of its sub-wave iv.

KSL Holdings Bhd (Rm 3.95)

KSL failed to move higher on Friday, but the possibility of forming its mini-wave 7 is still there.

However, if it continues to move lower next week, then it is forming the wave c of its sub-wave iv. It announced a strong earning of 20.50 sens per share on Thursday.

Golden Pharos Bhd (Rm 0.78)

GPharos announced a poor earning of 0.2 sen per share. It is on its way to complete the wave c of its wave (iv).

Priceworth International Bhd (Rm 0.25)

PWorth announced a small quarterly profit of Rm168,000.00 for the first time after many quarters of losses. I hope it has finally turned around and the 16 sens low in June is the turning point for PWorth. The next up is the sub-wave v of wave (iii).

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