KLCI rebounded at about 1,030 pt (the Fibonacci retracement level). See the chart in my last blogpost. Should we buy aggressively? I will say, yes. The correction (wave 4) just ended at 1,030 pt level, we are now riding up wave 5. Wave 5 should go to at least to previous wave 3 peak (1,095 pt).
That was a short correction wave 4, isn't? Happens in bullish market. Also, in a bullish market, wave 5 happens to go way beyond wave 3 peak.
This wave 5 in the making could be catalyzed by a major event coming very soon. The new KLCI framework will take it place on 1 July 2009. Not just that, our beloved PM going to make some "significant announcements" related to his plans to ease restrictions on foreign investment at an annual investor conference on June 30 and July 1. That will attract foreign 'hot money' investments. PM's announcements may have the biggest direct impacts on KL stock exchange this year.
This wave 5 in the making could be catalyzed by a major event coming very soon. The new KLCI framework will take it place on 1 July 2009. Not just that, our beloved PM going to make some "significant announcements" related to his plans to ease restrictions on foreign investment at an annual investor conference on June 30 and July 1. That will attract foreign 'hot money' investments. PM's announcements may have the biggest direct impacts on KL stock exchange this year.
Prepare to ride another round of bullish wave.
