Floating Candle - Stock Market

 Kuala Lumpur Stock Market Outlook- Forecast for the day - 08 Aug 2007!

Technically speaking:

1. As at Tuesday’s close at 1290.13 the KLCI was lower by 0.77 points or 0.06%. Losers led gainers 695 to 248 and trading volume was 1.251 billion shares.

2. The Dow rebounded by a stunning 286 points on Monday’s trading, but there was no traction on Malaysian stocks.

3. The initial morning rally on the KLCI, of 12.18 points and a further rally to test a high of 24.82 points, did not last as funds buying fizzled out almost immediately giving back all of its gains by the day’s end to close lower by 0.77 points or 0.06%.

4. The indices of Malaysia, together with Singapore, Hong Kong, Taiwan, Thailand and Indonesia closed the day lower in spite of the Dow’s 286 points rally the night before. Only the Australian, Philippines and Korean indices closed in positive territory. Japan’s index was almost even.

5. When we did a scan on the Malaysian stocks last night, we noted a hefty 184 stocks with sell signals based on our Channel Break Out (C.B.O.) 20-10 trading system. This is really bad news for the local bourse, home based business ideas is a strong indication of further weakness to come. We also note there were no buy signals coming from the same trading system.

6. Singapore stocks were equally bearish, with 74 stocks emitting fresh sell signals and zero buy signals. In short stay out of both the Singapore and Malaysian stock market.

7. We expect further weakness on local stocks. But we also observed that our market is reaching an oversold floating snowflake candles where a rebound may well happen. However, we would only buy after we witness sharp plunges on our stocks. As a guide we table below the target prices of some stocks where one may buy on dips. (OL = or lower)