A Historic Link

Come next Monday, 17th November 2014, for the first time, Chinese retail investors from Mainland China can buy foreign shares directly when the long-awaited trading link between Hong Kong and Shanghai starts to operate.

Hong Kong Exchanges and Clearing chief executive 

Charles Li (left) and chairman Chow Chung-Kong

This 'Link' will provide a channel for Chinese individual investors to start moving some of their 50 trillions Chinese Renminbi of private wealth into oversea stocks. It also allows foreigners to buy more China stocks.

Click 'Hong Kong - Shanghai Trading Link' for details.

This is going to have a great impact on equity and currency markets.


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Dow - wave (xiii)

Dow (17,612)

Dow closed its Wednesday session at 17,612. For two days Dow ended on a mixed note forming 2 'doji' candlesticks. If Dow is not forming its minor wave vi then it is forming its mini wave 4 of sub-wave i of its wave (xiii).

Dow is at the tail end of its sub-wave i, it may take another week to finish it. The upper channel line may provide solid support to sub-wave ii. Sub-wave iii of wave (xiii) will set more new record highs in December.

FBMKLCI (1,816)

KLCI dropped another 8 points to continue with its wave c of 2. It may take another two to three days to complete its wave 2.

KSL Holdings Bhd (Rm 4.54)

KSL moved to a high of Rm 4.67 before sellers pushed it down to close at Rm 4.54. If it can continue to climb higher with good volume, it may be able to run until end of November to form its mini-wave (iii) of sub-wave v.

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Berjaya Corporation Bhd

Berjaya Corporation Bhd (Rm 0.485)

BJ Corp formed its first green candlestick after a week of correction. Is that the signal that mini wave 2 has ended ?

BJ Corp has been in the down trend since April 2010 forming the wave C of its mega wave (2). It may be too early to say that its mega wave (2) has ended, more confirmation is needed, but the bullish 5 little waves formation is a positive sign.

Bonescythe has a long writeup on this stock in September. Click 'BJ Corp - The Rise of The Empire' for the article.

If my reading is right and if the 47-sen level is indeed the base, it is possible that the mega wave (3) of BJ Corp has started. I am keeping my fingers crossed.


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Weekend update.

Dow (17,573)

Dow closed the week with another new record high. From the candlesticks it is quite obvious that the run is losing momentum. Mini wave 3 may end anytime. Mini wave 4 may take one or two days to completed. Mini wave 5 of sub-wave i can be quite unpredictable.

The upper trend-line is likely to provide a strong support for the sub-wave ii correction.

FBMKLCI (1,824)

KLCI continues to form the wave 2 of its wave d. It appeared to me that the magnitude of wave 2 is about there. Hopefully wave 3 of d can start next week.

I expect wave d to run until first quarter of 2015.

KSL Holdings Bhd (Rm 4.56)

KSL continues to form the mini wave (ii) of its wave (v). I hope I can see the starting of mini wave (iii) next week. Wave (v) is likely to be completed by end of November or early December after the announcement of its 3rd Quarter earning and the approval of the one for one bonus issue plus the proposed Dividend Reinvestment Plan.

From a longer term perspective, if wave (v) is the end of major wave 3, it will be followed by major wave 4 correction before the final major wave 5 surge to complete its mega wave (3). The major wave 4 correction, if inline with KLCI's wave e correction, it may last about 3 to 4 months.

Based on my projection, mega wave (3) may reach Rm 8.00 ( or Rm 4.00 after adjusting for the 1 for 1 bonus)  before end of 2015 provided the Dow can hold. 

Please remember, I can be wrong. 


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Dow - Two consecutive new highs

Dow (17,554)

Dow added another 69 points (+0.4%) to close Thursday session at 17,554 for another record high two days in a row. Dow has reached its short term upper trend-line. It may take a pause to form its sub-wave ii before breaking the short-term upper resistance.

It is also possible that it may choose to continue its current run for a break through before taking a rest.

FBMKLCI (1,831)

KLCI is currently forming the mini wave 2 of its wave d of major wave 4.

It is likely to complete its wave d with a new record by early 2015. Hopefully it can last until 19th February, 2015 for a happy and prosperous Chinese New Years.

Berjaya Corporation Bhd (Rm 0.48)

If BJ Corp has ended its down-trend that started in April 2010 and is on its new bull cycle now, the possible low for the current minor wave ii is 47 sens for a 100% retracement.

KSL Holdings Bhd (Rm 4.57)

KSL is forming the minor wave ii of its sub-wave v at this moment.

However if it chooses to drop further, then this will be a higher degree mini-wave (ii) correction.

But nothing to worry lah if the company is going to announce another 20 sens of earning per share for its 3rd Quarter and the EGM is going to approve the 1 for 1 bonus issue and the Dividend Reinvestment Plan (DRP) by 28th November. Logically the next run-up has to go beyond Rm 5.00.

It is also good to remember - ' The time to worry is when everybody is not worry'


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KSL Holdings Bhd and Berjaya Corporation Bhd

KSL Holdings Bhd (Rm 4.65)

Malaysia Securities Bhd has approved KSL's proposed 1 for 1 bonus issue on 3rd November and has called for EGM to be held on 28th November to obtain shareholders approval.

KSL is expected to announce its 3rd Quarter earning before end of November. I am expecting an earning of around 20 sens a share with cumulative earnings of about 56 sens for the first 3 quarters. KSL is expected to earn more than 70 sens a share in 2014

KSL is currently forming the wave (v) of its major wave 3.

Berjaya Corporation Bhd (Rm 0.49)

Since 16th October, BJ Corp has formed 5 little advancing waves with encouraging volumes, a rather bullish development. I expect its next surge, the mini-wave (iii) can break its Monday's intra-day high of 51.5 sens with high volume to confirm the uptrend.

 

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Dow - New Record High

Dow (17,390)

Dow added 195 points (+1.13%) to close the week at 17,390 for a new record high. It is forming the sub-wave i of its wave (xiii).

FBMKLCI (1,855)

KLCI is forming the wave d of its major wave 4. Hopefully this wave d can last until early 2015.

Berjaya Corporation Bhd (Rm 0.51)

The green candlestick on Friday has provided a very crucial mini-wave v to BJ Corp. With this 5-wave up, the last 47 sen level has a better chance to be the end of sub-wave v of (v) of C.

BJ Corp has a better chance that its down trend since April 2010 has ended.

Farlim Group (M) Bhd (Rm 0.58)

Farlim has finally completed its land sale to 1MDB for Rm 112.5 millions during the second quarter this year. The company is holding Rm 114 millions of cash with almost zero borrowing. Its cash per share is 81 sens.

Beside the cash, Farlim has many other undervalue properties in Penang, Petaling Jaya, Kajang, Melacca and in Trengganu. Its 208 acres of land in Kemaman, Trengganu has a book value of only Rm 1,604,301.00, which is about 18 sens per sq.ft.

If its recent low of 53 sen is the end of its major wave 2, it is possible that the current run-up is the starting of its major wave 3.

Advance Synergy Bhd (Rm 0.19)

Has its major wave 4 ended  and its major wave 5 started ?

KSL Holding Bhd (Rm 4.52)

It is likely that KSL is currently forming its wave (v). The only question is how high it can go.

Pan Malaysia Corporation Bhd (Rm 0.255)

Hopefully its major wave 4 has ended and its major wave 5 has started.

Priceworth International Bhd (Rm 0.225)

My wave count is as shown. Hopefully it has started its wave (iii).

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