Sentiment Index - Malaysia Stock Market

Constructed and written by Smartbiz 

Intraday Oscillator: Market sentiment lost strength after seeing the key index failed to recover from deep losses. Smallcaps and 3rd liners suffered heavy profit taking today after yesterday's notable gains. The Oscillator slid to finish at -182.38 lost 389.11 compared to its opening point at +206.73. The Average recorded as -95.35; retreated 185.01 compared to +89.66 of the previous session.

MSCD: After today’s market, %K fell slightly but remains above %D. The Histogram printed yet another shorter bar in the positive zone.

MSCD data are appended as below:

DATE	A_OSC	%K	%D	%A	HGM
10/29/2012	-0.52	-12.34	-37.30	-67.82	21.18
10/30/2012	-187.44	-39.27	-48.42	-72.17	18.78
10/31/2012	-213.65	-66.09	-60.67	-77.32	13.94
11/1/2012	89.66	-42.14	-49.53	-71.25	12.63
11/2/2012	-95.35	-50.32	-52.92	-72.12	10.62
LAST+-	-185.01	-8.18	-3.40	-0.88	-2.00

Analysis: MSCD shows overall sentiment affected by the continuous losses of the key index has declined further. This is evidenced by %K which has printed another lower-high in its top-rounding process. Meantime, %A, which is a mid-term indicator, remains as a strong technical support.

Retailers were compelled to apply the "Fast-in, Fast-out" strategy during a weak market.

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.