(Updated 17/1/99) Although market succumbed to profit taking and correction due to problems in Brazil, our entry at STI 1,400 had not been threaten at all. Last week we make three predictions. First, STI should continue to move up towards 1,600-1,630 in early part of the week. The index did move up, but only reached a high of 1,581.10 (18.90 points short of our minimal target). Second, the index would be confronted to profit taking in later part of the week, which would then bring the index down towards 1,500 level and lower. The index did come down to 1,453 on Friday, and our prediction was right to the point! Third, the star performance would probably center on 2nd liners and electronic counters. Again, we were perfectly right! In fact, the big correction was mainly for blue chips and that the 2nd liners and electronic counters were firmed to positive gained. So, what would happen next week? Early next week, we will see STI continue to surge up towards 1,600-1,640 level. However, due to shorter trading week, STI will probably taper off by Thursday or Friday. Next week rally will probably be on broad base basis. Suggest to sell on rally and reduce your holding by at least half of your portfolio by end next week. From the wave structure analysis, we have completed the triangle Wave (B) consolidation, it is now going through the Wave (C) of ((B)). Wave (C) will probably take the index towards 1,650-1,700 region, of which 1,700 coincide with the fourth wave of a lesser degree of Wave ((A)). Alternate count, suggest that we are on Wave 5 of Wave (1). A completion of Wave (1) will follow a corrective Wave (2) which will bring the index down towards 1,030 or lower.
Events To Watch For The Coming Weeks/Months
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