Dow surged 267 points (+1.49%) on Friday. If Dow is forming an 'ending diagonal triangle' wave (xiii), this could be the mini wave 3 of v of (xiii), especially when Dow failed to go above the upper trend-line.
If the assets bubble is not expected to burst in 2015 and 2016, the coming pullback is likely to be the major wave (6), a 13% correction.
Is this going to be another 'Sell in May and go away' scenario.
According to the Stock Trader's Almanac, since 1950, Dow has had an average gain of only 0.3% during the May-October period. The average gain was 7.5% during the November-April period.
However, if Dow can go above the upper trend-line, another possibility is as shown below, Dow is forming the sub-wave iii of its wave (xv).
No major correction is expected until wave (xvii) has ended.
FBMKLCI (1,807)
The two possibilities for KLCI remained the same. It is either forming its mini wave 2.
Or it is forming its sub-wave ii, a maximum 10% correction, in tandem with the 13% major wave (6) correction for Dow.
KSL Holdings Bhd (Rm01.87)
Unfortunately KSL is forming the major wave 4 correction. It is heading for Rm 1.60.
LCTH Corporation Bhd (Rm 0.48)
Hopefully Friday's rebound is the beginning of wave (v) of its major wave 3.
Lee Swee Kiat Group Bhd (Rm 0.30)
The magnitude of mini wave 5 is rather small, a failure 5. It is likely that Leesk is forming its sub-wave ii of wave (iii).
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