The Dow indicated a possibility of weekly good showings upon bearish reversal of the heavy fall below the 8,000 level, with a rebound during the last hour of the week ending 21st November. Dow opened higher above the daily and weekly Pivot Point (Pp); and the 20 period and 60 period EMA; and the downward sloping line A. Tuesday, the market showed a reprieve with a consolidation around the daily Pp and 20 period EMA. Wednesday, with next day is a Thanksgiving holiday the Dow inched upward breaking the daily Pp and bouncing from the 20 period EMA. Friday was very bullish with a gap open of the Dow at above the daily S1 pp level and subsequently breaching the S2 Pp. The Dow closed at 8,829.04 with a gained of 1,277 points, or 17%, in just five sessions, marking its best five-day percentage gain since 1932, and its best five-day point gain on record.
EWM performance.There is a triple bottom forming last Friday and the target of the bottom was reached on Monday. The EWM than consolidate forming a triangle. I am anticipating the break to the upside of the triangle.
As mentioned on the last post, as expected the Malaysian market moved positively in early week, but went flat subsequently despite the Dow performance. The coming week will establish where is the Bursa KLSE Composite heading, since the low on Wednesday is 61.8% retracement of the swing low of October 28 and high of November 5th. My bet is that the gap experienced two weeks ago will be fill-up and a move up to 880 area. I don’t like to predict but preferring for anticipation of the flow of the market. On this basis, I believed for the past two weeks the local market sentiment has been detached from the Dow and interest on the market is dwindling. The market is waiting for any positive economic news locally or foreign news that has direct bearing on local economy.During the week, Bank Negara cut the OPR from 3.5% to 3.25% and forecast that the economy will grow by 5% to 5.5% in 2009. Bank Negara also projected that in the fourth quarter this year, the economy was to expand by 3.5% to 4.5%.
After a string of reported weaker corporate earnings and slower domestic economic growth of 4.7 % in the third quarter of 2008, the slowest pace since the mid-2005 the impact of the news has been minimal on the market. With the 2008 almost coming to the end, December could see some assets values propping.
After a string of reported weaker corporate earnings and slower domestic economic growth of 4.7 % in the third quarter of 2008, the slowest pace since the mid-2005 the impact of the news has been minimal on the market. With the 2008 almost coming to the end, December could see some assets values propping.
