On a break!

I am going on a break for a couple of weeks. I will try to leave a rough outlook of the markets ahead.

Dow - approx 13,600-13,750 critical resistance level. Chances are, it would likely ease after reaching that level. It could fall back to test 13,000 or lower. This is due to the Dow Theory Sell signal.

STI - could rally straight from here. We could see a decoupling from the US in 2008. But (to be on the conservative side), I would take a same view for now. Meaning that STI could retrace a bit after hitting 3,650-3,700. Only after the retracement is over, then it should rally all the way into 2008.

KLCI - take a similar view. Bullish on the longer term. Pullback after hitting 1,405-1,410. Then it should rally hard into new highs of 1,490-1,560 next into 1Q 2008.

Asean strategy - Buy into dips. Look out for the lower liners coz they are going to be the star this time round!! Remember 1993-1994. :)