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Monday, November 5, 2012

Sentiment Index - Malaysia Stock Market

Constructed and written by Smartbiz 

Intraday Oscillator: Market sentiment deteriorated as regional markets gave back most of their gains. FBMKLCI fell deeper to finish at 1,654.04 lost 2.09 points. Low-liner especially Smallcaps suffered broad-base selling today. The Oscillator slid to finish at -466.36 lost 431.53 compared to its opening point at -34.83. The Average recorded as -338.57; sank 243.23 compared to -95.35 of the previous session.

MSCD: After today’s market, %K fell and cut %D decisively but %D remains above %A. The Histogram printed another shorter bar in the positive zone, almost completed its top-rounding process.

MSCD data are appended as below:


Analysis: In MSCD, %K confirm its bearish trend after another bad day. Meantime %A is still doing its job as a mid-term technical support.

The whole world is waiting for the loss report resulted by the destructive Hurricane Sandy and the result of the US President Election. Nobody would like to take any intensive or extensive position during such unclear global situation.

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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