If Dow can last until 2016

Dow (17,832)

If the assets bubble is as what Roubini has said, "It won't pop until 2016", Dow is expected to move in an up-trend channel until 2016. From its long-term chart, Dow is in its super wave VII.

So far Dow has completed wave (xii) of major wave (5) of mega wave 1 of its super wave VII. 

Please bear in mind that the mega wave 2 can drop all the way to the starting point of mega wave 1 at 6,547 level for a 100% retracement.

The run-up from wave (xii) to 17,958 until 5th December has gained 11.4%, based on magnitude achieved, it is possible that wave (xiii) has been completed. If that is true, then Dow is currently forming its wave b of wave (xiv). 

It is good to remember that there are a few other possible wave counts for Dow.

I was looking at Dow's monthly chart last night and I found that it is possible to have a slightly different wave count as shown below.

For this wave count, Dow is currently forming the wave (v) of its major wave (5). If wave (v)'s magnitude is the same as that for wave (i) of 24.6% gain, Dow may reach 19,150 level.

FBMKLCI (1,752)

If Dow can last until 2016, it is highly possible that KLCI has started its major wave 5.

KLCI has completed its major wave 4 on 16th December at 1,673 level.

Its current pullback can be the mini wave 2 of its sub-wave i of  wave (i) of major wave 5.

Karambunai Corp Bhd (Rm 0.06)

A leading tourism player in Sabah. Jewel in the crown is the 1,500 acres of land in Karambunai Peninsular which is in the process of being developed into a world-class eco-nature integrated resort.

Over in Peninsular Malaysia, the Group owns 1,363 acres of land in Dengkil, Selangor, which is being developed into a resort style mixed development known as Bukit Unggul Eco-Media City.

In October 2013, the Group has completed a corporate exercise to put the Group into better financial footing. Under this exercise Kbunai issued 2.9 billions share valued as 11 sens a share to Dr. Chen Lip Keong, a director and a major shareholder, as settlement to debts amounting to Rm 322 millions. Similarly 339 millions shares valued at 11 sens were issued to FACB to settle Rm 37.7 millions of debt.

After the exercise, Dr. Chen Lip Keong has a direct interest in 4.29 billions (74.27%) shares and an indirect interest in 339 millions (5.87%) shares via FACB.

Kbunai closed the week at 6 sens, which is 45% lower than the 11 sens issued to Dr. Chen and FACB in October 2013.

At this moment, Kbunai is forming the wave v of its wave C of mega wave (2). If it can end its mega wave (2) at 5.5 sens, it is forming a 'double-bottom' reversal pattern with very strong OBV.

From its 2-year chart, Kbunai is at mini-wave 5 of wave v.

For its quarter ending September 2014, its earning is in the red at -0.11 sens per share. Net assets per share is 15.27 sens.

From its latest annual report, the 1,500 acres of land at Karambunai Peninsular is valued at Rm18.70 psf. And its 1,363 acres of land at Dengkil Selangor is valued at only Rm 2.76 psf.

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