Year of the Goat - Huat Ah

Happy Chinese New Year

Statistically S&P 500 gave the best average return of 26% in the year of goat followed by 20% return in the year of pig.

Russel 2000 that measures the performance of about 2,000 small-cap stocks in the US, gains an average of 42% in goat years.

Click 'Year of the Goat best for stocks' for the report.

Only two animals in the Chinese zodiac give negative return in stock investment, the Rooster and Rat. It is important to note that the next Rooster year is from 4th February 2017 to 3rd February 2018. So, if one believes in statistic and Feng Shui, one should clear his stocks before end of January 2017 even if the market is having an euphoric run with record volume at that time. That could be the last kick before the bull took its last breath.

The next pig year is 2019, hopefully there is at least a 20% rebound before the next zodiac animal that gives negative return, the Rat, take over the stage in 2020.

Based on the above logic I have developed for the next few years a hypothetical projection for FBMKLCI as shown below.

Assuming the current major wave 5 could last until January 2017, the end of Monkey year, wave A of super wave (II) could start in 2017, in time for the Rooster year. It could be followed by wave B rebound during the Dog year (2018) and the Pig year (2019). The final wave C shack-out during the year of Rat could bring KLCI to 829 level by end of January 2021.

This is just my hypothetical projection for FBMKLCI, a technical exercise during the first day of the Goat year.

Gong Xi Fa Cai to all of you. Hopefully it is '888-Huat Ah' for all of you in the next 24 months covering the Goat and the Monkey years before the destructive Rooster comes in.


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