Dow rebounds but the view remains

Dow rebounded 109pts last night while the S&P500 added13pts to 13,676 and 1,520 respectively. The rebound is still within the range of my wave count. There is likely another leg down in a day or two - this is Wave 3. This is expected to be followed by a few (about 3-4) volatile days or sideways trading - this should form Wave 4. Followed by the last impulsive Wave 5 down to about the 50-62% correction level - 13,150-13,330. Then the Dow would continue to rally into 2008! This is the correction that I roughly expect to pan out. After this correction - the BULL returns!!! :))

STI should also roughly follow in the same lines. I am looking at 3,500-3,660 for the STI. It may be a wide range but I believe that these are good levels to get in - Heavy for the upcoming BULL run. 4,000 should not be a problem for the STI.

KLCI should break above the 1,392 after this correction. 1,392 is a ten year high - meaning that the bull trend is on its way. Correction should end in Oct or Nov. 100-day SMA should hold steady at 1,336. I am starting to 'hear' about a few stocks. I found these 3 stocks attractive, both technically and fundamentally (except for MKLAND) - CRESBLD, BAHVEST and MKLAND. Will write bout these soon.

I have put down the outlook for the next few weeks. I will not be able to update this blog in the next couple of days because I do not have access to the internet. :)

'Trade within your means' - SS