Rampaging and surging KLCI Index
© Lee Cheng Hooi
The KLCI passed a key chart point of 836 on 2 July, 1999 and is due to head up further. Lee Cheng Hooi, an independent chartist who has closely monitored the KLCI for 11 years, says that the KLCI is poised to head up further.
The level of 836 represents a vital pivot point in the historical KLCI chart. Firstly, Lee says it was the pivotal low of January 1995. Using Universal Clock techniques pioneered in USA by Jeanne Long (a famous financial astrologer and wife of New Market Wizard, Robert Krausz), the very same chart point is the important key to the upside of the KLCI. Having sailed past this level, the KLCI would head for its mid-point of the next band at 956 points (the half way point between 836 and 1,076).
The Universal Clock is a 24 point concept that works for all markets, according to Jeanne Long who pioneered the revolutionary software called the Galactic Trader. The KLCI trades in a broad 240 point band, says Lee. He has made thorough research into this phenomenon and concludes the accuracy of the technique is as close a one point precision.
As an example to prove his point, the KLCI's major pivot points since the capital control low of 261.33 on 1 September, 1998; have as accurate as one point. The subsequent levels are 356 (5 October, 1998:- 357.28), 404 (15 September, 1998:- 404.40), 428 (21 October, 1998:- 428.45) and 452 (19 November, 1998:-
451.95). He says that the trick is to add 24 to 260 (and so on) to find the next resistance levels.
When the KL stock market is rampant and rife with all kinds of rumours of restructuring plans and mergers, Lee says it is easy to get carried away with the buying euphoria. In the KLSE run, not all stocks will perform well. An example is plantation stocks like KLK and Golden Hope will serious under-perform as the CPO
prices are collapsing.
A strong price and time technical analysis is needed to steer clear of any potential danger of reversal for the market, he says. Although July is not generally a month of danger for global markets, he reminds people that the Dow Jones topped out last year above at 9,368 in mid-July and fell to 7,400 in two months. More dangerous is a 16th. century prediction from the Frenchman, Nostrodamus, says Lee.
For interested investors, Lee will be making a price and time forecast at a technical seminar on Saturday, July 24 at 7.30 p.m. at Holiday Villa, Subang Jaya. A fundamental approach would also be given by Laurence Lau, director of the Market Pulse newsletter. The two speakers would combine to give a comprehensive
stock analyses and stock picks. Lee would also present details of the above Nostrodamus quatrain.
The talk is jointly run by the Rayma Management Consultants (M'sia) Sdn Bhd and Market Pulse Sdn. Bhd. The talk will be in English, with translated Mandarin notes available to the Chinese investment community as well.
July 7, 1999
Lee Cheng Hooi, renowned technical analyst of The Right Timing in The Edge and technical charting analyst for the Market Pulse newsletter, will be presenting a stock market evening talk on IS THE MARKET HEADED FOR 650 OR 950 FOR THE REST OF THE YEAR? on July 24 at Holiday Villa Subang Jaya. In-house seminar details, contact RAYMA Management Consultants Wendy Song at tel: (03) 7044-666, fax: (03) 7044-484 or e-mail: email@example.com