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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