Explanation:The Daily MSO Chart keeps track of daily MSO movement for the past 100 trading days. The Daily Oscillator was constructed by composing the Numbers of Gainers and Losers weighted by Volume per minute of each market day.
As you can see, the Daily Oscillator (white) is too erratic to depict any meaningful indication of the market sentiment. That’s why it has been called “Oscillator”. The key Indicator of the Chart is the 5-Days Average (blue) which gives more meaningful indication.
The 20-Days (yellow) and 50-Days Average (red) are Secondary Indicators which act like gauges. When the 5-Days Average cut any of these two lines it confirms its trend. (Click to enlarge)
Conclusion:
Market was hammered by falling CPO and profit taking on plantation counters today. The poor performance of other Asian bourses also added more weighs. Asian market mostly fell deeply with renewed worries on global economy after US reported various unfavorable economic data. Japan fell 3.93%, Hong Kong 3.81%, Taiwan 5.30% and Singapore 2.82%.
Locally, the benchmark index KLCI followed suit and tumbled by 17.10 points or 1.84% to finish at 910.52.
The key indicator of the Daily MSO, 5-Days Average, fell back to the uptrend channel and pointing downwards. This indicates that investors have turned cautious and refused to take new positions amid renewed uncertainties from US market. The falling of all MSO indicators is closely correlated to daily trading volume. Thinner volume will cause them to swing downwards. Understandably, thinner volume means less market participants. Forward market strength will depend on whether or not the key indicator can defy the pulling effect of the channel.
Meantime, report shows US Futures declined further and Stocks in Europe also dropped on concern the deepening economic slump will wipe out earnings growth and curb demand for commodities. Crude oil also traded lower.
As you can see, the Daily Oscillator (white) is too erratic to depict any meaningful indication of the market sentiment. That’s why it has been called “Oscillator”. The key Indicator of the Chart is the 5-Days Average (blue) which gives more meaningful indication.
The 20-Days (yellow) and 50-Days Average (red) are Secondary Indicators which act like gauges. When the 5-Days Average cut any of these two lines it confirms its trend. (Click to enlarge)
Conclusion:
Market was hammered by falling CPO and profit taking on plantation counters today. The poor performance of other Asian bourses also added more weighs. Asian market mostly fell deeply with renewed worries on global economy after US reported various unfavorable economic data. Japan fell 3.93%, Hong Kong 3.81%, Taiwan 5.30% and Singapore 2.82%.
Locally, the benchmark index KLCI followed suit and tumbled by 17.10 points or 1.84% to finish at 910.52.
The key indicator of the Daily MSO, 5-Days Average, fell back to the uptrend channel and pointing downwards. This indicates that investors have turned cautious and refused to take new positions amid renewed uncertainties from US market. The falling of all MSO indicators is closely correlated to daily trading volume. Thinner volume will cause them to swing downwards. Understandably, thinner volume means less market participants. Forward market strength will depend on whether or not the key indicator can defy the pulling effect of the channel.
Meantime, report shows US Futures declined further and Stocks in Europe also dropped on concern the deepening economic slump will wipe out earnings growth and curb demand for commodities. Crude oil also traded lower.
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