Constitution (Amendment) Bill 2019

Why were some Sabah and Sarawak MPs protested when the Federal Law Minister tabled the Constitution (Amendment ) Bill 2019 at the Parliament yesterday as what has been promised by Pakatan Harapan before GE14?

The PM mentioned 'The agreement between the Federation of Malaya, Sabah and Sarawak'.

But the proposed amendment to Article 1(2) reads: "The states of the federation shall be : (a) Johor, Kedah, Kelantan, Melaka, Negeri Sembilan, Pahang, Penang, Perak, Perlis, Selangor and Terengganu; and (b) Sabah and Sarawak.

The whole amendment is just to split the original 'states' into (a) and (b), that's all?

What is the difference between these two new territories and the three existing Federal Territories of Kuala Lumpur, Labuan and Putrajaya?

Liew Vui Keong told reporters at the Parliament lobby, "Sabah and Sarawak lawmakers would be held accountable if they scuttle the effort to amend the constitution to honour MA63".

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Will Dow stop at 27,000?

Dow (26,258)

Dow gained 329 points (+1.27%) on Monday on strong China manufacturing data and optimism about US-China trade talk.

If Dow is forming an 'Expanding Triangles' major wave 8 since January 2018

The likely target for the current major wave 8 is 27,000, another 742 points or 2.8% away only. If Dow really turns south after that, the wave E, unless is a 'failure' E, can reach as low as 21,000 level (-22%) or even lower if it is an 'over-shot' wave E.

Can Dow punches through the ceiling? I don't know. Technically it shouldn't if it is forming an 'Expanding Triangles' 3-3-3-3-3, A-B-C-D-E corrective wave. But as I have mentioned before, in stock markets, everything is possible. But then how to explain the 3-wave C? An ordinary expanding A-B-C corrective wave, C should have 5 waves.

Be careful, make sure you don't be caught on the wrong footing.

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Weekly Update

Dow (25,928)

Dow is about to complete its wave ii of D.

FBMKLCI (1,643)

Not much changes, KLCI will continue to form its wave v of C of its mega wave (6).

Inari Amertron Bhd (Rm 1.57)

If Inari can move higher next week, it will complete its wave B very soon.

But if Inari continues to move side way, it is going for a-b-c-d-e wave ii.

Insas Bhd (Rm 0.76)

Insas continued to move lower last week, extending its wave ii to a lower end. I have no choice but to bear with it.

Sapura Energy Bhd (Rm 0.335)

To my disappointment, in the last 5 trading days, the price of Sapnrg dropped below the neckline of a potential 'Head and Shoulder' reversal pattern. With that Sapnrg now has two possible options. The wave iv formation that I mentioned last week is one option

Another possible option now is that the current wave iii is going to have nine mini waves instead of  five. Sapnrg is forming its mini wave 7 of iii at this moment.

Advance Synergy Bhd (Rm 0.14)

ASB is about to complete a potentially very bullish 'overlapping 5-advancing waves' pattern.

The latest example of this bullish pattern formation is WTK as shown below.

The long term 20-Year chart of ASB has a bullish wave count accompanied by a bullish OBV. After hitting bottom in 2009, ASB has formed its  mega wave (1)-(2) and major wave 1-2. The 10.5 sens low recorded on 2nd and 3rd of January is likely to be the end of its major wave 2.

It is highly possible that since early January, ASB has already started forming its major wave 3. At last Friday closing price of 14 sens, ASB has already gained 33% since its low in January.
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Weekly Update

USD/MYR (4.0645)

USD/MYR continues with its wave iii of C formation.

From the daily chart it is forming the mini wave 7 of its wave iii. Still a long way to go if I am looking at Rm3.50 to US$1.00 as the end of the current wave iii.

Dow (25,502)

Dow plunged 460 points (-1.77%) on Friday on global growth fear. Weak economic data signaled that global economy's growth is slowing. More drops are needed to complete the wave c of ii of D before Dow goes for the next surge, the wave iii to complete its wave D at around 27,000 level.

The question is whether Dow will punch through its ceiling in its next surge? Technically very unlikely as wave C has only three waves but never try to rule out the impossible in stock market.

FBMKLCI (1,666)

KLCI's 21 points drop on Thursday has made me to question whether wave iv of C has ended? But if KLCI continues to drop next week, I have no choice but to accept the fact that wave v of C is in progress and it is difficult to explain why wave iv has five mini waves instead of three.

Inari Amertron Bhd (Rm 1.61)

Inari is either has completed its wave ii and is currently forming the wave iii of B

Or it is going to have another wave e down to complete its wave ii of B before starting its wave iii of B.

Insas Bhd (Rm 0.78)

I am not sure whether Insas has completed its wave ii,

Or it is still struggling with its wave ii.

Sapura Energy Bhd (Rm 0.345)

If Sapnrg can keep its share price above the 'neckline' of its inverted 'head & shoulder' next week and is able to move higher after retesting the neckline, then this can be a classical case for 'head & shoulder'.

Sinmah Capital Bhd (Rm 0.215)

If SMCap can continue to move higher next week, it will confirm the very bullish wave i-ii, 1-2 formation. The uptrend that started on Friday with 1.5 sens gain will be the starting of wave 3 of iii.

But if SMCap starts to move lower in the next two weeks with five mini down waves i-ii-iii-iv-v, then it is forming an expanding triangle a-b-c wave ii.

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UEM Sunrise Bhd (Rm 0.845)

A friend of mine that has been holding many UEM Sunrise shares for quite some times has asked for my technical view on this stock. UEM(S) gained 1.5 sens today with 827,000 shares traded.

From the long term chart, UEM(S) reached its peak of Rm3.60 in 2013. From its 2013 peak to its October 2018's low of 63 sens, it formed a A-B-C corrective wave (2). It is highly possible that UEM(S) is on its new up-trend cycle starting from October 2018's low of 63 sens.

From its 1-Year chart as shown below, UEM(S) has formed a 'Double-Bottom' reversal pattern.

So far it has completed its wave i-ii with a 100% retracement for its wave ii. Its mini wave 1 was unable to break the neckline but the momentum of its mini wave 3 was able to punch through the neckline together with an OBV breakout.

Mini wave 4's drop to retest neckline support was rather classical.

Wave iii has a minimum target of 96 sens. But if the price can punch through the 96 sens level, I will expect the 96 sens level to become the support level for its wave iv correction later on.

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weekly Update

USD/MYR (4.0915)

Malaysia ringgit continues to form the wave iii of its wave C. Hopefully it can reach Rm 3.50 to US$1.00 by early next year.

From its weekly candlestick chart, USD/MYR completed its wave ii by end of November 2018 and since then it has completed five minor down-wave i-ii-iii-iv-v to form its mini wave 1. It is likely to take another 2 to 3 week to complete the mini wave 2 before starting its mini wave 3 that is likely to see the Ringgit to go to below Rm4.00 to 1USD.

Dow (25,848)

Dow is either on its way to complete its mini wave 7 and its wave D at 27,000 level.

Or it is at its wave ii consolidation at this moment before another surge, wave iii to complete its wave D at 27,000 level.

Another possibility is the bullish option that I mentioned previously as unlikely - Dow punches through its ceiling and continues to set new record highs all the way up north. In stock the unlikely do happen once a while.

FBMKLCI (1,680)

KLCI continues with its wave iv formation. It will start its wave v of C when Dow is forming its wave E of 8.

Inari Amertron Bhd (Rm 1.51)

Inari is about to complete its wave c of ii. The next up will be the wave iii of B.

Insas Bhd (Rm 0.775)

The next up-leg for Insas can either be the wave iii,

or it is the wave b of ii.

Sapura Energy Bhd (Rm 0.365)

Sapnrg managed to punched through the neckline of its inverted 'Head & Shoulder' last week, technically it is forming its wave iv with a target price of 60 sens.

Bumi Armada Bhd (Rm 0.19)

It is possible that Armada is forming its wave iii at the moment. Hopefully it can go above its previously high of 25 sens next week.

Pinehill Pacific Bhd (Rm 0.335)

If Pinepac can punch through its upper trend line and can move higher than its wave i's high of 54 sens, then it has started its wave iii.

Failure which, it will continue to move side way forming its wave ii with another X-a-b-c kind of corrective waves.

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Sapura Energy Bhd (Rm 0.34)

Sapura Energy gained 1.5 sens today to close the day at 34 sens with a volume of 37 million.

After hitting a high of Rm 4.90 at the end of December 2013, its stock price has been moving in a down trend direction for 5 years forming a possible A-B-C mega wave (2) corrective wave. It dropped to an intra-day low of 25.5 sens on 31 January 2019 to provide a possible end to the wave iii of its wave C of (2).

It is possible that it has started the wave iv with strong volumes since the beginning of February.

The mini wave 2 of iv appeared to provide the right shoulder of a possible inverted 'Head and Shoulder' reversal pattern. Its closing price at 34 sens today rested exactly on the neckline of the inverted 'Head and Shoulder'. If it can move above the neckline tomorrow and can continue to move higher, this wave iv has a possible target of 60 sens before it price starts to move down again to complete its last wave v of C of (2).

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