The unlevel playing field - Hannah Yeoh

The Unlevel playing Field - click to read the latest article from Hannah Yeoh. We all know that in politics there will never be a level and clean field and I am sure Hannah was prepared to fight in an unlevel field but it is still far beyond her imagination that the field can be that dirty. BN has started their machinery for the next election, let's give our full support to Hannah and her team.

Some Malaysian Stocks

In the last two days, 3 of my friends called up to ask for my wave reading for Axiata, Genting Malaysia (the former Resorts world), HPI, KNM and Measat. My reading based on Elliott wave for them are as shown below.


Axiata's chart is very straight forward as shown above. It has completed major wave (I) & (II) and wave 1&2 of the major (III). Wave 3 has just started with last Friday's surge as shown below.

Wave 3 has a minimum target of Rm3.60.

Genting Malaysia as shown above is about to start its sub-wave v of its wave 5 which can end at Rm3.10 or Rm 3.20. Not that exciting.


HPI has no mass participation until lately. Since Elliott wave principles were developed based on mass actions and reactions to stock tradings. No wave count for HPI.


KNM has completed its major wave (I) without any doubt. The question is whether it has completed its major wave (II) as shown in "Case A" above or it is forming the corrective a-b-c waves of the major (II) as shown in "Case B" above. A closer look at its 6-month candlestick chart as shown below indicates that it is more likely to be "Case A".

KNM has completed major wave (I) & (II) and wave 1 &2 of major wave (III). wave 2 of (III) consists of a "3-waves a", a "3-waves b" and a "5-waves c".

Measat as shown above is about to start its sub-wave v of wave 5 of its major wave (III). Another 50 sen in front for sub-wave v at Rm2.50.

Dow - sub-wave v has started

Dow gained 113 points (+1.2%) on Friday, that marked the starting of sub-wave v which can last another two days. What is next?


There are 3 possible options/outcomes. I have mentioned Option 1 and 2 yesterday, to be cautious, I added one more option 3. This third option is unlikely but when it happens, the magnitude of the drop will be big and you will have no doubt it is option 3, run for your life is the advise. Protect your cash is the objective. But it is unlikely.

Option 1 and 2 are more likely. If Dow's next week behavior is the same as its behavior in the last two weeks, Option 2 will be the outcome. If Dow goes into a mild 5 to 7 days pull back, then it is option 1.

Dow - Dropped with higher volume for two days

In the last two days, Dow dropped with higher volume of 8.6 billions and 7.7 billions respectively versus the previous 10 days average volume of about 6 billions. Not a good sign. The last two days drop is likely to be sub-wave iv as shown below. If Dow can start to move up from here, sub-wave v is likely to stop at 9500 to form wave 1. Wave 2 consolidation can take 7 to 10 days.

Another possibility is as I have mentioned previously, higher degree wave 2 consolidation may not appear at all, under such circumstances I would expect the current up trend to continue with only minor corrections as shown below. Under such circumstances, major wave (III) would consist of 9 mini sub-waves only.

So Funny

Someone has written a 'famous' article two days ago in Utusan Malaysia that touched on races. Our DPM said "it is the media's right to do so"








In September 2008, Tan Hoon Cheng, a reporter, was arrested under ISA for her report on a racist remark made by an UMNO division chairman. The one who made the remark was not arrested but the reporter that reported the remark was arrested. However Hoon Cheng was released in less than 24 hours due to huge public outcry.





"Tan was arrested because her safety was under threat" Hehehe so funny.

The Star reported today "MACC Chief gets death threat over Teoh's case". Better quickly arrest him under ISA for his safety.

Dow - From the angle of 'Major Wave B'

As mentioned in my previous post, Larry Kudlow (there are many more economists) has declared the arrival of a bull market, I still like to maintain my bear market's wave B rebound hypothesis mainly due to the lack of volume and dynamism. Wave (III) of a bull market usually has a volume higher than wave (I) especially if it is an 'inverted head and shoulders' breakout.

Before end of July, I was expecting wave (III) to consist of 5 sub-wave as shown above to take place. However, there is no sign of wave 2 so far, buyers always emerged at the end of the session to push prices higher. Is the market being manipulated? or as mentioned by Vince Farrell, "there is $11 trillions sitting on the sidelines".

Hopefully wave 2 as shown above can come earlier, if wave 1 keeps on extending and has gone too high with low volume, when the correction finally comes and if with high volume, we will have to watch out for the scenario as shown below - major wave B ended with a failure wave (III). We have a single wave (III) instead of having 5 sub-waves for (III).

This scenario is unlikely at this stage. Look out for sub-wave 2 pullback and monitor closely, it should last for 5 to 7 sessions with lower volume. Larry Kudlow is definitely looking for high volume when sub-wave 3 comes, the higher the volume the better.

It's a New Bull Market - Larry Kudlow

It's a New Bull Market this is the headline in last Friday's 'The Kudlow Report'. It is a very bullish report expecting the bull to run into next spring. He can be right but I still prefer to stick to my bear market's 'wave B' rebound that can last until end of September 2009 and hopefully by then the wave form has developed into a form that can nullify my 'wave B' theory and I can continue to hold on to my stocks to a higher level until spring 2010.