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If the People's Voice Rally at Kelana Jaya stadium tonight does not turn ugly, Malaysian stock market should have factored into its price the results of the 13th General Election. From now on, I would expect the market to move roughly in tandem with the world bourses especially the US market.

I always believe 'when uncle Sam sneezes, the whole world catches cold', I have to look at the Dow first to see whether there is any immediate danger before looking at the Malaysian market.

Refer to my previous posts on Dow, so far, Dow is rather well behaved. It is half-way through its sub-wave vii that is expected to be completed before end of this month.

Sub-wave viii's correction is expected to finish within 3 to 4 weeks before end of June. Next will be sub-wave ix, it will run for about 1-month to complete and that can be the end of wave (vii) too.

Wave (viii)'s correction in August is expected to drop about 8%. If wave (ix) can run for another 5 months, major wave (5) may complete in January 2014. If that is also the end of mega wave 1, watch out for the mega wave 2's correction and the possibility of 100% retracement. The mega wave 2 may take more than a year to complete.

So, from now until January 2014, Dow is not expected to have any serious pullback except the 8% correction for wave (viii).

However, if mega wave 1 has 9 major waves, after completing the major wave (5) the next pullback is major wave (6) and not the mega wave 2. This is possible as long as the central bankers continue to print money out of thin air.

 People's Voice Rally

Malaysiakini reported a 120,000 crowd at the Kenala Jaya stadium.

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