After 2 weeks I am still unable to confirm which way Dow is heading at this moment. But if one believed that the trade war between US and China can only going from bad to worst, Dow is more likely to go south, heading for 23,000 level, another 2,313 points or 9.1% to go before completing its major wave 8.
FBMKLCI (1,805)
I expect KLCI to move in tandem with the Dow with respect to the two possibilities.
One of my readers has asked for an example for stock with OBV showing stock distribution by the 'smart money'. One good example is the Star Media Group Bhd (Rm1.24). Very likely in early 2015 'distribution' has started.
Another stock is ATTA Global Group Bhd (Rm0.86).
There is a different between Star and ATTA (please remember that my observation can be wrong), the distribution for Star were done by 'investors' that do not see a future in newspaper's business. They have given up hope on this stock.
For ATTA, the accumulation and distribution were done by 'smart speculators' with a simple plan - accumulate - pushing the price - distribute - short selling - buy back. 'Round one' completed. Looking at the OBV, 'they' are still holding some stocks. Have they started the 'Round two'? Are they accumulating?
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