A little bit of everything: FBMKLCI - It is major wave 4 correction.

Monday, October 13, 2014

FBMKLCI - It is major wave 4 correction.

FBMKLCI (1,797)

FBMKLCI dropped 11 points today to close at 1,797 level. It has punched through the final lower support line as well as the 1,800 level. The current down is the sub-wave iii of wave C of the major wave 4. I expect it to move above the 1,800 to complete its sub-wave iv.

Major wave 4 has a possible low of 1,686, which is the end of wave (iv) of its major wave 3.

After the completion of its major wave 4, KLCI still has one more up-trend, the major wave 5 and be very careful, that could be the end of the mega wave (5), unless mega wave (5) has more than 5 waves. Even a mega wave (6) correction can be very damaging, just look at the mega wave (4) correction during the 2008-2009 financial crisis.

Berjaya Corporation Bhd (Rm 0.495)

If BJCorp drops below 49 sens, I will have to revise my wave count of (i)-(ii), i-ii.

Dutaland Bhd (Rm 0.65)

Wave (iv) continues. It is also possible that the current down is only the wave a of (iv).

Pan Malaysia Corporation Bhd (Rm 0.24)

I still think that the current correction is the wave (ii) of its major wave 5. The last support is 22 sens. It is cheap even at 24 sens as it has a cash per share of 19 sens with zero borrowing.

Priceworth International Bhd (Rm 0.195)

It is forming its wave (ii) with a possible low of 16 sens for a 100% retracement. This stock can be a goldmine by 2017 when its log production reaches 100,000 cu.m a month and its wood based mills can operate at 70% or more of its capacity.

My assumption

At this moment I am assuming the Dow, at its worst, is undergoing its major wave (6) correction, a 15% pullback. The assets bubble is not yet burst.