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Friday, September 14, 2012

Sentiment Index - Malaysia Stock Market


Constructed and written by Smartbiz


Intraday Oscillator: Market sentiment motivated by the significant gain of the Dow Jones opened with strong notes. But the oscillator was seen lingering in tight range for the whole session. Only last hour buying pushed it to end at +659.69; gained 102.73 compared to its opening point at +556.96. The Average recorded a gain of 523.51, added another 439.62 points compared to +83.88 of the previous session.

MSCD: After today’s market, %K surged to cut %D decisively and by passed the downtrend channel in one shot.  The Histogram printed another shorter bar to continue its bottom-rounding process.

MSCD data are appended as below:

DATE A_OSC %K %D %A HGM
10/9/2012 216.15 287.09 215.58 148.70 71.34
11/9/2012 623.54 338.83 245.81 165.97 75.67
12/9/2012 31.97 281.80 225.23 158.77 71.85
13/9/2012 83.88 225.56 202.32 149.95 62.13
14/9/2012 523.51 110.35 148.54 125.46 42.07
LAST+- 439.62 115.21 53.78 24.49 20.06

Conclusion:

Sentiments across Asian region were cheered by Federal Reserve’s decision to unleash more stimuli for its slow economic growth. Local market took the clue with buyers leaped into the market buying both blue chips and low-liners. However, sentiment remained cautious as total volume didn’t really tally with the positive mood.

Based on charts, market sentiment has abruptly reversed from pure pessimism to optimism. But, technically, the sustainability needs more confirmation as %D stays below %A and the Histogram hasn’t completed its bottom-rounding process yet.

The “Fast-in fast-out” is still a good strategy at this moment.

Note: Explanation on Intra-Day MSO and MSCD are archived under "Labels" at the sidebar.

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