It appeared that Dow was just tagging along with the record breaking S&P and Nasdaq, it has yet to set a new record high.
If Dow failed to break the upper tread line in the coming week, it is possible that Dow is about to complete its major wave 1.
But if Dow is able to break the upper trend line but unable to break its previous record high of 29,568, it will have to move south for a 15% pullback to complete its major wave 2 especially if S&P and Nasdaq start to take a pause after their respective records breaking runs.
However, if Dow can pick up momentum and can join S&P and Nasdaq in setting new record highs, it is possible that the current run up is not sub-wave v but is the mini wave 3 of sub-wave iii, a very bullish scenario.
FBMKLCI (1,525)
KLCI dropped sharply during the last 20 minutes of trading with very high volume during that last 20 minutes of the afternoon session on Friday. The following 5-minute interval 1-Day chart showed clearly what has happened. Until now I still don't know what is the reason for that plunge within 5 minutes.
With this sharp 29 points drop, I need to modify my wave count for KLCI.
It is more likely that since June, KLCI has been forming its wave (ii) and is about to complete the wave c of (ii).
Fintec Global Bhd (Rm 0.16)
As expected, Fintec announced a fantastic earning of 16.66 sens a share with net assets improved to 55 sens a share.
Fintec's revenue improved from its previous quarter of Rm6.2 million to Rm41.4 million due to the sale of short-term marketable securities. This improvement combined with the fair value gain of Rm128 million of its marketable securities contributed to the 100% increase of its earning from 8.29 sens in the previous quarter to 16.66 sens for quarter announced.
Now the focus will shift to the anticipated earning for the current quarter ending 30 September that must be announce by 30 November.
Based on last Friday's closing price of all Fintec's investment holdings, the total fair value gain during period from 1st July to 28 August is an unbelievable Rm 909 million, 610% more than the Rm128 million just announced for quarter ending 30 June. Will this Rm 909 million improve further to above Rm 1 billion until 30 September? Or will the prices of all its investment holdings start to move lower during September? Great uncertainty, especially when the US presidential election is around the corner and nobody really know what Trump is going to do next with China, Russia and Iran and with the rising tension in the South China Sea.
Fintec is forming the sub-wave v of its wave (i) at this moment.
Gold (US$1,973/oz)
Gold looked very bullish. From the 40-Year Monthly chart, its is on the wave (iii) of its major wave 3 at the moment.
From the 4-Year Daily Chart, Gold has so far completed the sub-wave i-ii-iii-iv-v-vi and mini wave 1-2-3-4 of its sub-wave vii of wave (iii).
From the 5-week hourly chart, Gold has completed its mini wave 4 and has started its mini wave 5. For the mini wave 5, it has completed wave (i)-(ii), sub-wave i-ii and it is on its sub-wave iii now.
I expect Gold to move above US$ 2,000/oz very soon and all the gold related stocks are expected to move higher in tandem with the international gold price.
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