Has the bull started?

Well, it is still too early to confirm right now. Dow is still hanging just above the critical 12,845.87 level. I have used the 12,840 level as a last ditch support. Last night, the Wall St rebounded. Dow is now back above the 13,000 level. Nasdaq is likely to have 1 more leg down before it can turnaround. Nevertheless, 2008 is going to be another exceptional year.

For Asian markets, the money would likely flow out of US and into Asian markets be it property or equity. HSI and Shanghai is expected to be the leaders this time round. I have heard stories that HSI could even hit a high of 40,000. That did not surprised me at all as I think it is very much possible. So, get ready for the bull.

STI is also looking bullish in the long run. Though the short term mechanics are starting to show. Yesterday's bullish long white candle is supportive. The rebound from its 61.8% of 3,322 is a very good sign. Continue to accumulate on weakness. I like Broadway Industrial and Midsouth Holdings. Both stocks are looking good fundamentally and technically.

KLCI also fell to its next support at 1,360-1,365 after falling below the 1,380 level. Accmulate between these levels. I see smaller construction companies starting to move. Crest Builder is one, trading a 5x PE. It also broke out of its consolidation pattern. Salcon is also a single digit PE and a breakout could take place soon. According to Bloomberg, analyst has target prices for Salcon at RM1.70-1.80. Faber is also moving.