The Bursa Malaysia composite index has been setting new record highs lately but there is no trace of bullishness and no mass participation in the market. The current market sentiment is so much different from those record breaking days in the 1993/94 bull-run when trading was euphoric and prices of stocks were being chased irrationally to unrealistic levels.
Since the Dow has no immediate danger, our composite index may have more record breaking on the way but trading may remain 'boring' with no mass participation.
Back to the wave count - just an academic exercise.
As shown in the 20-year chart above, starting from the 1998's low of 262, the composite index has completed its major wave (I), (II), (III), (IV) and wave 1-2 of its major wave (V) before end of 2011.
For the whole of 2012, it completed its sub-wave (i)-(ii) of wave 3 of its major wave (V). The latest surge can be the starting of its sub-wave (iii) of wave 3. It should be bullish with high volume but there is no sign so far except 'boring, boring & boring tradings'.
Looking at the US Federal Reserve's balance sheet as shown below, I don't feel comfortable and I don't know what sort of bubble is being created and when it will burst.
Courtesy of beacontrust.com
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