Dow - 15% pullback in May ?

Dow (20,940)

Dow is likely to form its mini wave 5 next week. If sub-wave v has only five waves and wave (v) also has only five waves, then the end of mini wave 5 will mark the end of sub-wave v, wave (v) as well as the end of major wave 7. Major wave 8 correction is likely to have a 15% or 3,000 points pullback. From its current level of 20,940 to the target level of 21,500, Dow has another 2.3% or 500 points to go.

FBMKLCI (1,768)

If KLCI can move in tandem with Dow for another 2% up, that will bring the index to around 1,800 level before the 15% wave C takes place.

If one really believes that Dow is going to complete its major wave 7 in May and KLCI is going to move in tandem with Dow, the only logical thing to do is to get out slowly within the next two to three weeks.

Pray hard that your stocks in hand can have another surge, the last surge, for you to get out.

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Petrol Price - Ron 95

The price of Ron 95 has gone up for three consecutive weeks from Rm 2.13 a litre to Rm 2.16, to Rm 2.24 and to the current price of Rm 2.27.

Looking at the weekly candlestick chart of crude oil (WTI) price, in the previous week the price of crude oil dropped from US$53.18 a barrel to US$49.62 a barrel. I expect the price of Ron 95 to go lower at the coming Wednesday's announcement.

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Weekly Update

Dow (20,547)

Dow is forming its sub-wave v, which is expected to end in May. My target is 22,000.

If wave (v) has only five sub-waves and if major wave 7 also has only five waves, the next down wave will be the major wave 8.

FBMKLCI (1,756)

KLCI has started its sub-wave v. If wave (iii) has only five sub-waves, the next pullback will be the 15% wave (iv) correction.

EG Industries Bhd (Rm 0.875)

I have no doubt that EG is forming its major wave 5.

But I have been changing my wave count for EG in the last several weeks to take care of EG's latest behaviour. Hopefully my last modification is correct. Activity and volume is expected to pick up as this current run-up is the wave (iii) of 5.

Inari Amertron Bhd (Rm 2.09)

If my wave count for Inari is correct, Its volume should improve greatly next week for its sub-wave iii of wave (iii).

Insas Bhd (Rm 0.925)

Insas is on its way to complete its sub-wave v. My target is Rm 1.10 in May.

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Gadang - A revised wave count.

I need to revise my previous wave count for Gadang with its latest formation of 5 mini down waves. The long-term wave count remains the same - mega wave (1)-(2), major wave 1-2 and wave (i)-(ii)-(iii)-(iv). Since December last year Gadang has been forming its wave (v).

I have revised my wave count for the current wave (v). Under this revised wave count, Gadang has just completed its sub-wave iv and sub-wave v has just started and it is expected to last 3 to 4 weeks.

Another reason that has prompted the revision is the wave form of Gadang-WB.

It is an obvious i-ii-iii-iv formation that I have overlooked.

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US$ to Malaysian Ringgit

Since December 2016, Ringgit has improved slightly from Rm 4.48 to 1 US$ to Rm 4.40 to 1 US$

The exchange rate is expected to move to Rm 4.60 to 1 US$ to complete the sub-wave v as well as major wave 7 of B.

Technically speaking, after completing the wave B, the Ringgit should slowly improved to below Rm 2.90 to 1 UD$ over the next 5 to 10 years to form its wave C.

This is something quite hard to imagine in view of our current economical and political situations in Malaysia. May be, Donald Trump is going to mess up the US economy and the US$ or something great is going to happen in Malaysia with the magic of Mahathir. Don't forget, it was during his time that the Ringgit went as high as Rm 2.40 to 1 US$.

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Weekly Update

Dow (20,453)

The mini wave 1-2 that I mentioned last week turned out to be the wave d-e of sub-wave iv after the 138 points drop on Thursday. Hopefully Dow can start its sub-wave v next week.

FBMKLCI (1,730)

It is possible that KLCI has ended the wave c of its sub-wave iv. Hopefully KLCI can start its sub-wave v next week.

EG Industries Bhd (Rm 0.855)

EG dropped continuously for 5 days from Monday to Friday. With this drop, it becomes necessary to modify my wave count from a a-b-c-d-e major wave 4 to a a-b-c-d-e-X-a-b-c major wave 4 as shown below.

Its correction since mid-February becomes the wave (ii) and is likely to have been completed.

Gadang Holdings Bhd (Rm 1.26)

Gadang is either forming the sub-wave ii of its wave (v) currently

Or it already completed its wave (v) and also its major wave 3. The current correction is the major wave 4.

But personally I feel that this option is less likely because its wave (v) is rather short. But nothing is impossible in stock.

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Inari & Insas - Higher degree correction

Inari Amertron Bhd (Rm 1.97)

Inari has a long red candlestick today and it ruled out my mini wave 6. With this 8 sens down, Inari is either forming its sub-wave ii

OR it is forming its wave (iv).

Insas Bhd (Rm 0.90)

With 3 red candlesticks in a row, even though it is unacceptable technically to have the highest volume for wave b, but it is wave b and wave c of sub-wave iv is in progress.

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