KSL, LCTH, LeeSK

KSL Holdings Bhd (Rm 1.92)

Finally it is the bearish option for KSL, wave c of 4.

The Rm 2.05 support level gave way on Monday followed by a bigger drop on Tuesday. The bearish option I mentioned on April 10 is confirmed. There will be a wave iv rebound before the final drop, wave v of c of 4.

LCTH Corporation Bhd (Rm 0.465)

LCTH current correction can either be the sub-wave vi of wave (iii)

Or it is the wave a of its wave (iv), a higher degree correction.

Lee Swee Kiat Group Bhd (Rm 0.295)

A surprisingly very short mini wave 5, a failure 5. Very likely this is the wave a of its sub-wave ii.

Leesk remains bullish if it is forming the sub-wave i-ii of its wave (iii) as the next wave up will be the sub-wave iii of wave (iii) of major wave 3 of mega wave (3).

Unless the last high is the end of its wave (iii)

Then the current pullback is only the starting of a higher degree wave (iv) correction.

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Weekly Update

Dow (18,080)

On the safe side, I prefer to assume that Dow is forming its 'ending diagonal triangle' wave (xiii) at the moment. Then the next pullback, at best is a 10% to 15% major wave (6) correction.

The worst that can happen is a mega wave 2 correction, the asset bubble has finally burst, with at least a 42% pullback to 10,500 level (end of major wave (4)) or a 65% pullback to 6,547 level, a 100% retracement of its mega wave 1 bull run.

But my guess is - Dow is more likely to go for a major wave (6) correction of about 13%.

Shanghai SSE CI (4,393)

The Chinese are crazy and are pouring more and more of their saving/borrowed money into the stock market. Shanghai SSE Composite Index has doubled over the last 12 months moving from around 2,000 in May 2014 to 4,393 last Friday. A bubble is growing.

I am assuming that SSE CI is forming its wave 3 of B. It may add another 40% to 6,000 level to form a double top reversal pattern.

FBMKLCI (1,862)

KLCI continues to zig-zag upwards to complete its major wave 5.

But whether it is going to have a failure 5 that can end within a few months or a normal 5 that can last until early 2017 it depends on whether Dow is going for a major wave (6) or mega wave 2 correction.

LCTH Corporation Bhd (Rm 0.53)

I am expecting a wave (iv) correction for LCTH.

Lee Swee Kiat Group Bhd (Rm 0.34)

Leesk is expected to move higher next week to form its minor wave iii. I hope I am right.

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Lee Swee Keat Group Bhd (Rm 0.35)

Leesk is about to complete its mini wave 5 if 5 has the magnitude of 1. However if this mini wave 5 has the magnitude of its mini wave 3 then 48 sens could be the target.

The next pullback could be either sub-wave ii or wave (iv).

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Dow - Heading for Ending Diagonal Triangle

Dow (18,034)

Dow rebounded 1.17% (208 points) on Monday. Don't tell me it is heading for an ending diagonal triangle wave (xiii) that I have mentioned two days ago.

If it is really an ending diagonal triangle, the next question is whether the coming major correction is the major wave (6) or the mega wave 2? My guess is - major wave (6), 13% pullback.

Why?

Because Crude oil is going side way staying between US$50 to US$70 a barrel for the next two years to form the wave 4 correction. This should be good for the world economy especially US, China, Japan, India and Europe.

RGB International Bhd (Rm 0.19)

RGB is the 4th most active counter on Monday with 114 million shares traded. It gained 2.5 sens (+15%) to close at 19 sens.

Minor wave iii of its mini wave 3 of iii has started.

Can it punch through its upper channel line ?

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Dow - A sharp 1.5% drop on Friday.

Dow (17,826)

Dow dropped 279 points (-1.5%) on Friday due to investors worry about Greece and a sharp drop in China SSEC index future on Friday after the closing bell.

This drop could be the ending mini wave 3 of e of wave (xiv). Then we still have wave (xv), (xvi) and (xvii) to go before we reach a possible major turning point for Dow.

Then for the first time, it struck my mind that Dow might be forming a terminal wave, a '3-3-3-3-3 Ending Diagonal Triangle' for its wave (xiii)

After wave (xii), there is a 3-wave i, another 3-wave ii, an 11-mini wave (equivalent to 3) iii and another 3-wave iv. If Dow started to move up from its current level to 18,500 or slightly beyond (over-throw) and then started to move down and cut through its lower support line, then, be careful, be very very careful, that is possibly the ending diagonal triangle wave (xiii), Dow might be heading for a major correction.

If we are lucky, Dow might have a 13% to 15% major wave (6) correction.

If we are unlucky, this could be a mega wave 2 correction. The mega wave 1 bull run since March 2009 from 6,547 level could have ended.

Dow might go for a 42% pullback to where major wave (4) has ended, the 10,655 level, or it might go for a 100% retracement to the starting point of mega wave 1, the 6,547 level.

FBMKLCI (1,845)

KLCI will have to move in tandem with the Dow. If Dow is forming its wave (xiv) to (xvii) or its major wave (6) correction, KLCI might be able to last until early 2017 for its major wave 5.

However, if Dow is going for its mega wave 2 correction, KLCI might have a failure major wave 5 and might start to come down sharply in tandem with Dow.

LCTH Corporation Bhd (Rm 0.48)

LCTH has a powerful surge on Friday with high volume. Sub-wave vii has started.

Dr. Chen Lip Keong

Dr. Chen is the 17th richest man in Malaysia according to Forbes's ranking. He is an adviser to the Cambodian government and he owned the biggest casino in Cambodia, the NagaCorp Ltd, which is listed in Hong Kong.

He has a few listed company in Bursa Malaysia such as Facb, Petaling Tin and Karambunai.

Facb Industries Incorporated (Rm 1.25)

Facb surged 9 sens (+7.7%) on Friday with comparatively high volume. It used to be a very quite and frustrating counter but is a very very solid stock with a cash backing of Rm 1.74 per share with zero borrowing. Besides the cash, Facb has 340 million shares of Karambunai in hand and factories and offices in Malaysia and China selling 'Dreamland' mattresses and related products. It is hard to understand why its share price has been staying at around Rm 1.00 to Rm 1.30 in the last 2 years.

From its long term chart, this could be the major wave 3 of (3).

Petaling Tin Bhd (Rm 0.28)

Another boring but solid stock of Dr. Chen. In its latest quarterly report, earning per share is 0.11 sen and net assets per share is Rm 1.04. It has many under-valued property, personally I valued Petaling Tin at Rm 3.20 a share.

Has mega wave (3) started ?

Karambunai Corporation Bhd (Rm 0.07)

Dr. Chen is holding 74.27% of KBunai. If only he could get a casino license for this resort in Sabah.

Forming a big double bottom. Has mega wave (2) completed ? Just look at the OBV, fantastic accumulation.

Latest quarterly earning is -0.18 sen a share and net assets of 15 sens. And again its properties are greatly under-valued.

I am monitoring its daily volume and its OBV movement closely for improved daily volume and an OBV breakout before a price breakout.

Hi hkloon,

Sorry that I have overlooked your comments. Thousand apologies. I am only an amateur chart reader trying to share my reading with my old friends and at the same time telling them, 'hi, I am still alive'. 


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Lee Swee Keat Group Bhd

Leesk added 4 sens to close at 34.5 sens on Thursday with high volume of 29 millions shares traded.

It has finally started its mini wave 5 after going side-way for more than a month.

If mini wave 5 has the same magnitude as mini wave 1 then 38 sens is the target. But if it has the magnitude of mini wave 3, then it may be able reach 50 sens.



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A Boring Week

Dow (18,057)

Dow might have gained 1.6% over the week but my two options for Dow remained the same. Dow is either forming the sub-wave iii of wave (xiii)

Or it is forming the wave e of wave (xiv). I expect Dow to continue with its up trend until wave (xvii) is completed. Then I will have to watch out for a possible major correction.

FBMKLCI (1,844)

KLCI continued with its mini wave 3. It may end at 1,880 level before mini wave 4 starts. Still a long way to go for the major wave 5.

LCTH Corporation Bhd (Rm 0.42)

LCTH failed to reach the 48 sens level for its sub-wave v. Now that sub-wave v is completed, the current correction can either be the sub-wave vi, is almost there,

Or it is a higher degree wave (ii) correction.

RGB International Bhd (Rm 0.165)

If I am right, RGB is forming the mini wave 3 of its sub-wave iii of wave (v) of major wave 3. Its OBV has set a new high on Friday. I usually expect a price breakout to follow an OBV breakout.

Hopefully I can get a strong green candlestick on Monday with high volume.

KSL Holdinghs Bhd (Rm 2.10)

I have a bearish wave count for KSL as shown below. It is forming the wave C of its major wave 4

I also have a bullish wave count for KSL. This is a bullish iii of (iii) of 3 of iii wave count. This could be a 'too good to be true' wave count. Don't have too much hope but as long as KSL can hold above Rm 2.05, this possibility cannot be ruled out.

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