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Pinews092 20100519
Pinews092 20100519
Subscriber issue: Year 17/Issue 092 Circulation Strictly Prohibited PP8228/02/2011 No of pages: 6
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1 FKLI (MAY) 1330.5 -2.5 1331 Maintain Short Upside:1354/1396/1471 1349 OH S-T: Wave 5 rally ended
(Short) Downside:1278/1219 L-T: Tech Rebound/Look
for Wave C down
2 CPO (JLY) 2445 +20 2499 Maintain Short Upside: 2700/2799/2850 2595 OH S-T: Wave 5 rally over
(Short) Target:2393/2368/2284 L-T: Sideways
FOREX-TO-WATCH:
No. Forex Close PI Entry Rec. Long-term Targets Fractal Stop Remark
(18/05/10) Price
1 EURO/USD 1.2433 1.3587 Short Euro/USD Up-tgt:1.5320/1.5960 1.3450 OH W5 down
(Short) Down tgt: 1.2150
This stock market research newsletter is based on pure technical analysis. Statements and comments are subject to the limitations inherent in this technique of analysis and may change due to
unforeseen circumstances. Those wishing to trade are advised to use money management strategies to avoid getting over exposed in the event the market makes a sudden trend reversal. P.I.
Graduate’s comments should not be construed as a solicitation to buy or sell any stock referred to. P.I. Graduate or its staff may have positions in the stocks covered. P.I. Graduate shall not be
liable for any losses suffered by the subscriber from following our analysis. This daily newsletter is published by PI Graduate Studies Sdn Bhd (521589-H), 167A, Jalan Maharajalela, 50150 Kuala
Lumpur.
Continuation Sheet 2
3. Overall, the U.S., European and Asian equity markets are making a short term rebound and that could
have a temporary positive effect n our stocks, but I don’t see any strong buying that is strong enough
to trigger a rally.
4. Given what I expect to be a lukewarm response upwards, I see sellers coming out at higher levels to
neutralize yesterday are rebound on lower liners.
5. As such we remain sidelined except for one stock TALAM.
6. TALAM rose 1 sen on strong volume. This denotes market support at 0.14. This is one stock that can
rally to test 0.22.
7. Stocks with sell signals are MAYBANK and TM.
8. The Ichimoku charts of the CAC, DAX, FTSe UK and DJIA charts in the excel spreadsheet continue to
remain below the clouds, suggesting the markets are already in bearish mode.
9. So in short, we expect the Asian, Europe and U.S. markets to remain weak and we are sidelined as a
result for now. We will not re-enter until the Malaysian stocks trigger buy signals based on our CBO
20-10 system.
10. The ringgit strengthened to 3.2130 from 3.2250.
CONCLUSION: The EU proposed another 7 times the amount to rescue the Greek debt problem by pledging
750 billion euros. This weekend news triggered buying and stock and currency rebound across Asia, Europe
and the U.S. last night. Malaysian stocks rebounded but by meager amount. The rebound DID NOT trigger
any buy signal. As such remain sidelined. No buy.
Upside Targets: 1360/1436/1463/1524 (Revised targets on 5/3/10)
Immediate downside targets: 1292/1224 (Revised on 5/05/10)
Ichimoku chart: Span A resistance: 1288/92 (Revised on 2/03/10)
TRIPLE SCREEN READING WITH THE F-1 TRADER SYSTEM
P.I.-System Trader (Daily) – Triggered a “sell” signal on May 17, 2010 at 1334.27 (Will trigger daily buy
signal @ 1337.31 OH by today’s close)
P.I.-System Trader (Weekly) – Triggered a “buy” signal on Feb 28, 2010 at 1270.78 (Will trigger a weekly sell
signal @ 1315.62 OL by Friday, May 21, 2010 close).
P.I.-System Trader (Monthly) – Triggered a “buy” signal on May 4, 2009 at 1009.36 (Will trigger a monthly
sell signal @ 1276.51 or lower by May 31, 2010 close).
P.I.-System Trader Triple Screen: “Sell-Buy-Buy” – Short-term Weak, Medium term Strong and Long Term
Strong: 2 screen buy – Short term Weak, Medium term Strong and Long term strong. Market index showing
weakness. Be careful/S.A.
FOREX / GOLD OUTLOOK
FOREX (U.S. dollar is strengthening against the Euro, GBP, AUD and NZD. Gold is strong as dollar
rallies. We are now long on gold. Stop loss on gold 1123.0 OL. Ringgit is weakening against the
dollar as such our stocks’ strength is in question. Beware.
STOCK INDEX FUTURES OUTLOOK
Stock index futures: Maintain short/Buy-stop @ 1349.0 OH.
MAY futures closed low by 2.5 points at 1330.5 with relatively low volume of 5461 lots.
1. Our view remains unchanged.
2. FKLI did not hit our buy stop, hence we are still short.
3. The buy-stop for May remains at 1349.0 OH.
4. By the looks of the close, which is lower, we expect the FKLI to be sold down today.
5. Even as the Ichimoku chart is still bullish our wedge breakdown sell signal is an “aggressive sell” for
aggressive traders. Note the Chikou Span is showing possible Long term weakness if FKLI falls further.
6. We would enter long only if FKLI closes at 1349 or higher today.
7. Upside targets are: 1396/1446-1471.
8. Downside target may be 1287/1219 (Amended on 5/05/10)
9. General commentary: We expect a bearish breakout. Remain short.
Upside target: 1396/1446-1471 (Revised on 4/02/10)
Downside targets: 1287/1219 (Amended on 5/05/10).
Kumo support (Span B): 1278 (Updated on 5/05/10).
Average True Range for KLFE: A.T.R. is 12.07 points for FKLI futures. This implies you need to put a stop
above/below this A.T.R. or you can get stopped out due to the volatility factor. We advocate a 1.5 x or 2 x
the ATR. We are using a 5 days ATR.
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Continuation Sheet 3
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Continuation Sheet 4
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Continuation Sheet 5
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Continuation Sheet 6