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Wednesday, November 7, 2012

Sentiment Index - Malaysia Stock Market

Constructed and written by Smartbiz 

Intraday Oscillator: Market sentiment was lingering in low level as the overnight gain of Dow Jones failed to boost enough buying interest. The Oscillator slid to finish off low at -120.95 lost 275.77 compared to its opening point at +154.81. The Average recorded as -86.24; improved by 168.18 compared to -254.42 of the previous session.

MSCD: After today’s market, %K curved up and %D returned slightly above %A. The Histogram printed another longer negative bar.

MSCD data are appended as below:

Analysis: The US Presidential Election finally has its end with Obama regained his Presidential Appointment. However, local sentiment remains cautious due to various internal and external factors. MSCD shows the sentiment was stabilized but uncertainty stays. The mid-term uptrend is still under threat.

More clues will be shown in tomorrow's regional markets.

Explanation on MSCD: 
1. %K (Yellow) is a 12-Day EMA Oscillator that reflects the trend of present market sentiment. 
2. %D (Red) is a 26-Day EMA Oscillator serves as a trigger line for short-term trend of market sentiment. Market is considered as under short term bearishness once %K fell below %D but will recover sooner or vice versa.
3. %A (Blue) is a 54-Day EMA Oscillator serves as a trigger line for mid-term trend of market sentiment. Market is considered as under mid-term bearishness once %D fell below %A and will take longer to recover or vice versa. 
4. HGM (Histogram) is a bar signal that shows the relative strength of %K and %D. 
5. All data are taken from the Intra-Day Market Sentiment Oscillator (MSO) computed from the number of Gainer and Loser in a regular time basis.

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