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Friday, November 9, 2012

Sentiment Index - Malaysia Stock Market

Constructed and written by Smartbiz 

Intraday Oscillator: Local sentiment remained weak as global markets were shadowed by worries of US "Fiscal Cliff". However, Smallcaps and ACE counters were seen bucking the trend with impressive number of gainers. The Oscillator finished off low at -91.52 lost 93.13 compared to its opening point at +1.60. The Average recorded as -103.25; improved by 275.74 compared to -378.99 of the previous session.

MSCD: After today’s market, %K hooked slightly up but the Histogram printed another longer bar in the negative zone.

MSCD data are appended as below:

Analysis: The mid-term bearishness stays and duration should be prolonged if volume didn't improve in near term. Today's total volume is only 0.77 billion which is very much lower than the 40-Day Average of 1.07 billion shares. This is a typical phenomenon of a weak market.

Market will be plagued by the uncertainty of the General Election as well as the new US "Fiscal Cliff" for months. In between, low-liners will take turn to occupy the center stage but mostly short-lived.

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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