US stocks fell sharply on the 1st day of trading in the new year. This is Dow's worst start since 1983. The fall was led by banks and computer companies, after the announcement of the biggest decline in manufacturing numbers in 5 years. Intel fell the most in a year after Bank of America lowered its ratings. Caterpillar and IBM led the sharp fall in the Dow. Technically, Dow is likely doing the e-wave of its corrective Wave-4's triangle. However, should it fall below the 12,800 level, then the count is likely wrong. For now, the call remains. The Dow would likely rally into the 1Q after the e-wave ends.
STI is also stuck in a triangle since hitting a high in Oct. A drop to the 3,300-3,400 level is likely. Investors would likely do well buying quality stocks around these levels. I remain bullish on STI as I am bullish on Asia right now, at least for the 1H of 2008.
KLCI is likely to build a base around the 1,420-1,440 levels. Investors could choose to buy around these levels as the medium term uptrend is still intact. Continue to accumulate on weakness.
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