Sell, Not to Sell, Sell, Not to Sell...........

Hangzhou West Lake

With a 405 points (3.9%) gain for Dow on Monday, last Friday closing price of 10380 provides an important support level for the more optimistic scenario of major wave (VI), (VII), (VIII) and (IX) formation to form the mega wave I. As long as Dow stays above 10380 level which is major wave (VI), it will proceed to complete its wave (VII), (VIII) and (IX).

Under such scenario for Dow, Bursa Malaysia Industrial Index will have 5 waves for its major wave (V) as shown below. Under such wave pattern, Industrial Index has completed wave 1 and with wave 2 almost in place. The next up wave will be wave 3.


However, if Dow moves below 10380 in the next few days, one can forget about the waves being extended to 9 waves. Probability will be very high that the mega wave I has been completed, Dow is going to take a few months to complete its mega wave II. The famous axiom and also widely known as Halloween Indicator, "Sell in May and Go Away" will fit in nicely. Buy back time is in November around Halloween. See chart below.


In tandem with Dow, Bursa's Industrial Index is expected to form mega wave II either in the form of zigzag A-B-C as shown below or a less damaging triangular A-B-C-D-E pattern. Whichever the case, I will have to put into practice "Sell in May and Go Away".

So watch closely the 10380 level for Dow