weekly Update

Crude Oil (WTI) (USD55.81/barrel)

Crude oil (WTI) continues with its wave ii of E rebound. Wave ii is likely to last until early next year.

Dow (25,883)

Dow continues to move towards 27,000 to complete the wave D of its major wave 8. Wave E of 8, unless is a failure, is going to see Dow dropping to a possible low of 21,200.

Instead of a i-ii-iii three waves D, it appeared to me that Dow may choose to go for a 1-2-3-4-5-6-7 seven mini waves D.

Can Dow punches through the ceiling and continues to move higher into record territories as shown below?

Technically unlikely because for a A-B-C corrective wave, wave C must have 5 sub-waves. In fact if wave C has formed 5 sub-waves instead of 3 sub-waves, it could have been a perfect 'Expanded Flat ABC Correction'.

But no matter how unlikely an event, in stock market one can never rule out an unbelievable event no matter how slim is the possibility. That is stock market. Always watch out for surprises.

Inari Amertron Bhd (Rm 1.69)

Inari is on its way to form the wave B of its mega wave (2). At this moment I am assuming a simple zigzag 5-3-5 A-B-C corrective wave for the mega wave (2).

Insas Bhd (Rm 0.87)

On Thursday, the moment Insas moved above 84 sens, it has ruled out the current up trend since 4th January as the wave vi of C.

Now I am left with the option that I mentioned last week, Insas has completed its major wave 2 on 3rd January and is on its way to form the major wave 3 of its mega wave (5). Very bullish indeed. Once it crosses the 92 sens level it may take a short rest before proceeding north. My long-term minimum target for mega wave (5) is Rm 1.80.

If only Insas can distribute all its Inari shares to Insas shareholders as special dividend just like what Kuchai Development has just done by given out all its Kluang Rubber Co (M) Bhd to all Kuchai shareholders.

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