Translate This Page

Thursday, November 1, 2012

Sentiment Index - Malaysia Stock Market

Constructed and written by Smartbiz 

Intraday Oscillator: Market sentiment declined from positive path as the key index retreated again after the break. However, buyers stepped into market to collect smallcaps and 3rd liners in high volume during weaknesses. Last hour buying pulled the Oscillator to finish at +217.41 lost 200.14 compared to its opening point at +417.55. The Average recorded a gain of 89.66; surged 303.31 compared to -213.65 of the previous session.

MSCD: After today’s market, %K edged up to above %D but the Histogram printed another shorter bar in the positive zone.

MSCD data are appended as below:


Analysis: MSCD shows overall sentiment was volatile and vulnerable to external issue. Based on chart, market strength is progressing in downtrend as both %K and the Histogram have formed round-tops. However, the mid-term trend remains intact.

Having said that, it is also noted that there were notable buying on both smallcaps and ACE counters for two continuous sessions. Volumes for both smallcaps and ACE counters were also increasing significantly. This buying interest garners a good market atmosphere, meantime.

Explanation on MSCD: 
1. %K (Yellow) is an immediate-term indicator that reflects the trend of present market sentiment. 
2. %D (Red) is a short-term indicator served as a trigger line for short-term trend of market sentiment. Market is considered under short term bearishness once %K fell below %D but will recover sooner or vice versa.
3. %A (Blue) is a mid-term indicator served as a trigger line for mid-term trend of market sentiment. Market is considered under mid-term bearishness once %D fell below %A and will take longer time 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.

No comments: