Stocks jumped after European Central Bank announced a bond buying program this morning to the tune of EUR 60 billion a month until September 2016 for a total of about EUR 1.2 trillion.
With this latest QE from ECB and if oil price can maintain around US$50-60 a barrel for the next two years, Roubini's words that "we're in an asset bubble and it won't pop until 2016" can be true. He predicts an eventual crash, but not for at least a few years.
Dow (17,813)
Dow gained 259 points (+1.5%) after the ECB's announcement. It appeared to me that Dow is going for a contracting a-b-c-d-e wave (xiv).
FBMKLCI (1,781)
KLCI added 11 points to 1,781. Sub-wave iii continues.
KLCI is forming the sub-wave iii of wave (i) of its major wave 5 of mega wave (5).
Major wave 1 and 3 lasted 25 and 28 months respectively. If this major wave 5 can last say 25 months, it is possible that KLCI will be trending upwards for the next 25 months until January 2017 to around 2,400 level.
KSL Holdings Bhd (Rm 2.00)
So, how high can KSL go if the asset bubble can last for another 2 years ?
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