Ticker 1

Ticker 2

Click "Like" to Receive First Hand Updates From The Analysis Site / Click "SHARE" to share

Monday, 12 February 2018

DJIA and the Asian Broad Markets using Malaysia as Example: 12 February 2018, Monday, 2.45am Singapore Time

DJIA and the Asian Broad Markets using Malaysia as Example: 
12 February 2018, Monday, 2.45am Singapore Time
(Click on Technical Chart above to Expand)

Note:
Malaysia is used here as a representative example of an Emerging Market (EM) in Asia

In 2H-2012 to 2H-2015, for each of the years in 2012, 2013, 2014 and 2015, I had said that the US Quantitative Easing would not benefit Asian markets during each of those years in general.

I also warned that Asian stock markets' broad markets will cause most people to lose a lot of money during those years while indexes are made to look strong (using strong index to sell the broad markets so that most people lose most money). Indeed, it went mostly true per my fore-warnings. 

Currently, we are on the reverse cycle. While indexes are being made to look so weak recently, broad markets are generally not joining in sharp sell-off. Only retailers and the public are selling to smart hands. This is why we are still in a large bull market.

Most people would had sold off and gotten out wrongly and miss the next major wave of bull markets in Asia. This is like the case of 2H-2012 to 2H-2015 where people in Asia and Europe lost money buying instead of selling in the FED loosening, except that now the reverse is enacting with people selling instead of buying in the FED tightening. This is all mind-ripping for most people in most parts of the world, where they will once again lose money (huge opportunity costs) doing the wrong things because they think by logic, yet their logic are often wrong. Let us see some examples of broad markets generally not selling with indices, using Malaysia as a case study. This is where it reflects the real strength and real bull market having a new next wave in Asia. 

DJIA and the Asian Broad Markets using Malaysia as Example: 
12 February 2018, Monday, 2.45am Singapore Time
(Click on Technical Chart above to Expand)

DJIA and the Asian Broad Markets using Malaysia as Example: 
12 February 2018, Monday, 2.45am Singapore Time

(Click on Technical Chart above to Expand)

DJIA and the Asian Broad Markets using Malaysia as Example: 
12 February 2018, Monday, 2.45am Singapore Time

(Click on Technical Chart above to Expand)

DJIA and the Asian Broad Markets using Malaysia as Example: 
12 February 2018, Monday, 2.45am Singapore Time

(Click on Technical Chart above to Expand)

DJIA and the Asian Broad Markets using Malaysia as Example: 
12 February 2018, Monday, 2.45am Singapore Time

(Click on Technical Chart above to Expand)

DJIA and the Asian Broad Markets using Malaysia as Example: 
12 February 2018, Monday, 2.45am Singapore Time

(Click on Technical Chart above to Expand)

DJIA and the Asian Broad Markets using Malaysia as Example: 
12 February 2018, Monday, 2.45am Singapore Time

(Click on Technical Chart above to Expand)

DJIA and the Asian Broad Markets using Malaysia as Example: 
12 February 2018, Monday, 2.45am Singapore Time

(Click on Technical Chart above to Expand)

DJIA and the Asian Broad Markets using Malaysia as Example: 
12 February 2018, Monday, 2.45am Singapore Time

(Click on Technical Chart above to Expand)

DJIA and the Asian Broad Markets using Malaysia as Example: 
12 February 2018, Monday, 2.45am Singapore Time

(Click on Technical Chart above to Expand)

Certainly, some stocks in broad markets will fall. However, we will expect their falls to be much worse than the index market. So far the broad markets' falls have far fallen short of the falls in index markets. Under normal circumstances, the broad markets should plunge 2x to 4x, with a mean of 3x plunge in prices when pegged to indices due to much higher beta and not allowing for stocks to even have a higher low if it is a bear market. Also, anything less than such a mean plunge is bullish even if a correction is just on par to indices. The soldiers in general are not very willing to follow the generals in this index correction.

This was the same case in exact reverse-manner in 2H-2012 to 2H-2015 where DJIA rallied and indexes were strong but caused most people to lose money in Asia and Europe. Except that now, the indexes are used to cause fear to most people at the reverse way. Just like how people were duped by indices and hence lose a lot of money per my forewarnings of 2H-2012 to 2H-2015, people will now miss significant bull rally in Asia for the next few years because they are duped by the indexes once again.

This is one of the many ways to discern a bull market from a bear market. We are in a bull market where 80% of stocks will go up as a big tide.

No comments:

Post a comment