Dow - sub-wave iv correction (3% to 4%)

Dow dropped about 182 points, about 1% to 16,698 after about 2 hours of trading on Thursday morning.

Dow continues to move lower in its process of forming its sub-wave iv. A possible support level for sub-wave iv is the top of sub-wave i at around 16,500 level.

From its recent high of 17,113 to 16,500 level, the correction is about 3.5%

KSL (Rm 3.00)

KSL gained 20 sens today to close at Rm 3.00 with very high volume of 7 millions shares.

Currently KSL is forming the minor wave vii of its mini-wave 3 of sub-wave iii of wave (iii).

Looking at its long-term chart, there is still a long way to go for KSL to complete its mega wave (3).

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Dow - Cook Cumulative Tick

 Dow - Forming sub-wave iv

Mark Cook, winner of the 1992 U.S. that developed a primary indicator, the 'Cook Cumulative Tick', believed that based on his indicator, the market will suffer a 20% or greater pullback within 12 months.

He said, "There have been only two instances when the NYSE Tick and stock prices diverged radically, and that was in the first quarter of 2000 and the third quarter of 2007. The third time was April 2014."

Dow dropped 34% from December 1999 to September 2002 and it dropped 53% from October 2007 to March 2009.

Click 'Bear Market within 12 Months' for the article.

Golden Pharos Bhd (Rm 1.05)

GPharos added 9.5 sens today to close at Rm1.05. It is possible that GPharos is forming the wave b of its wave (iv). This can be confirmed if it starts to come down in the next few days.

However if it continues to move higher tomorrow, then it is more likely that wave (iv) has been completed and GPharos is on its way to complete its wave (v).

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Listen to Komal Sri-Kumar

Komal Sri-Kumar is President of Santa Monica based Sri-Kumar Global Strategies, Inc., a macroeconomic consulting firm that advises multinational firms and sovereign wealth funds on global risk and opportunities.

In an interview by Yahoo Finance this morning, he has these to say :

"When you have all this liquidity chasing a fixed number of assets, the asset price inflation takes place."

"It looks as if there is no end to the zero interest rate, so the bubble is going to get even bigger."

"It's very hard to say when the bubble is going to burst'"

"20,000 is way too high. We are probably going to see a 2,000 or 3,000 points drop before we see Dow 20,000 years from now."

He is talking about 15% correction for Dow before it reaches 20,000.


Click 'Dow poised to drop 3,000 points' to listen to what he has said.


Advance Synergy Bhd (Rm 0.225)

ASB was traded actively to close at its high of 22.5 sens (+12.5%) with improved volume of 14.3 million shares. Is this the starting of its wave (v) of major wave 1 of its mega wave (3) ?

In May, it moved from 14 sens to 26 sens (+85%) within 10 trading days to complete its wave (iii). Since end of May it has been forming its wave (iv).

I have been wondering whether wave c of (iv) was going for 5 or 9 waves. With today's powerful candlestick, it appeared to me that wave c has only 5 waves and wave (iv) has finally ended.

However, technically there is still a possibility that this rebound could be the wave d of (iv), if the rebound is a one-day affair, then the next down is the wave e of (iv). Hopefully ASB can continue to move higher tomorrow to put it beyond any doubt that wave (iv) has ended and ASB is forming its wave (v) currently.

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My favorite stocks

KSL added 17 sens (+6.4%) to close at Rm 2.81, forming the minor wave v of mini wave 3 of sub-wave iii of wave (iii). It still has a long way to go. I hope I am right.

GPharos is trying to complete its wave c of its wave (iv). It may drop to 80 sens to complete its wave (iv).

If Priceworth can continue to move higher tomorrow, that can be the mini wave 3 of its sub-wave iii. I hope it can be a goldmine.

Sometimes it can be interesting to listen to what the Feng Shui Master has to say. 

For MH 370 and MH 17 his comment is only one - MAS has offended the Grand Duke Jupiter this year.  

MAS 犯太歲

KSL - Minor wave iii in progress.

KSL managed to break its upper resistance line on Friday and to close at Rm 2.64. With this breakout, it appeared to me that KSL is forming its minor wave iii of mini-wave 3 of sub-wave iii of wave (iii). Hopefully it can move further up to put it beyond any doubt that minor wave iii is in progress.

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KSL - minor wave iii ?

It is possible that finally KSL started its minor wave iii today. It added 13 sens to close at Rm 2.57. This possibility can be confirmed if KSL continues to move higher tomorrow with higher volume.

However, if it starts to come down tomorrow, it is also possible that sub-wave iii has been completed as shown below with a wedge formation.

 

Since it is very rare to have a wedge formation for any third wave, I personally think that the first option has a higher possibility.

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Bursa Malaysia - FBMKLCI

FBMKLCI is forming its long-term mega wave (5). It has so far completed the major wave 1 and 2 of mega wave (5).

For its major wave 3, it has completed wave (i), (ii), (iii) and (iv) and sub-wave i and ii of its wave (v). It is at the tail end of its sub-wave iii.

It has completed mini wave 1, 2, 3 and 4 of its sub-wave iii

At this moment the minor wave ii of its mini wave 5.

Still a long way to go for FBMKLCI to complete its mega wave (5).

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