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Wednesday, November 14, 2012

Sentiment Index - Malaysia Stock Market

Constructed and written by Smartbiz 

Intraday Oscillator: Local sentiment lost strength after the key index slid into negative zone again. The Oscillator fell to end at -74.94 lost 37.45 compared to its opening point at -37.49. The Average recorded as -49.67; improved by 104.61 compared to -154.28 of the previous session.

MSCD: After today’s market, %K edged slightly higher and the Histogram printed an almost even bar in the negative zone.

MSCD data are appended as below:

Analysis: Market sentiment seems has temporarily stabilized but still in bearishness. The unstable key index will exert more pressure to investor's confidence.

On the other hand, US analyst said there is a potential "bloodbath" for stocks as a result of inadequate resolutions to the US deficit challenges. What do you think?

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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