Farms Best Bhd

Farms Best dropped 6.5 sens or 9% to 66.5 sens today, it is a higher degree correction. It is possible that the current drop is the wave (ii) of major wave 3. If the price can hold above the lower support line, the triple ascending pattern within an up-trend channel is rather bullish, especially if the next up can break the upper resistance line with high volume, then the next up is the wave (iii) of major wave 3 of mega wave (3). I hope I am right.

Assets Bubble

Jesse Colombo has written a series of articles on assets bubble in Asean countries. Click on the following to read them.

'Why Singapore's Economy is Heading for an Iceland-Style Meltdown'.

'Malaise is Ahead for Malaysia's Bubble Economy'.

'Thailand's Bubble Economy is Heading for 1997's Style Crash'.

'Why The Worst Is Yet To Come For Indonesia Epic Bubble Economy'.

'Here's Why The Philippines' Economic Miracle Is Really A Bubble In Disguise'.

I too, also believe the assets bubble will burst one day. That is also why i-Capital is holding more than 50% of cash. The question here is when will the bubble burst? 1st half of 2014?, 2nd half of 2014? or in 2015? or 2016? How high Dow and FBMKLCI can go before the bubble burst?

These are questions that can be answered only when the bubble ultimately burst.

Bernard Baruch (1870-1965), a multi-millionaire through stock market operation, once said, " ..... what actually registers in the stock market's fluctuations are not the events themselves, but the human reactions to these events. ........ in another words, the stock market is people. ..."

The stock index moment is the result of people's reaction (judgement, hopes, fears, greeds, optimism, pessimism, etc, etc) to changes in economic/financial policies, political events, economic data and any other news that affect the market.

Based on the belief that human nature does not change, nor does its pattern, Elliott discovered the repetitious phenomena in chart patterns in both bull and bear markets. So hopefully the repetitive chart patterns can provide hints or warnings when the bubble is about to burst.

Dow dropped 142 points (0.8%) to 16,316 after 2 hours of trading on Tuesday morning. It is likely that this is the wave c of mini-wave 4 as shown in the chart above.