ZL's Bursa Themes: How are world markets faring? : Updated commentaries and charts of FKLI, FCPO, FOREX and Bursa Stocks

Friday, March 20, 2009

How are world markets faring?

Markets will likely go through brief corrections before resuming uptrend ... Ever since our bottom call of the Dow Jones in our 11th March report entitled “Giants Awakened”, the Dow Jones has rallied impressively. Other world market giants have also awakened with the FTSE, Hang Seng and Shanghai Markets also rallying significantly.

Where do they stand now?

Dow Jones up 13% since March bottom RSI : 52.59 (Marginally Overbought) MAV Status : Above short term MAV Line 2009 PER : 11.49x

The ringleader of the global rally has now rallied 13% in just two weeks. It’s now trading above its short term MAV line which indicates short term bullishness. However, its RSI indicates a marginally overbought status which indicates that a very brief correction may be around the corner before the resumption of its uptrend.

FTSE up 8.1% since 5th March bottom ; RSI : 48.52 (Marginally Overbought)
MAV Status : Still below short term MAV Line 2009 PER : 10.01x

The London’s FTSE has just rallied 8.1% from the bottom. Its marginally overbought RSI indicates that it will go through a minor correction in these 2 days.

Hang Seng up 15.7% since 9th March bottom ; RSI : 56.08 (Marginally Overbought)
MAV Status : Trading above short term MAV Line 2009 PER : 11.22x

Hong Kong’s Hang Seng Index’ 15.7% rally since 9th March has brought it to the marginally overbought zone, which means that it might go through a correction in these 1-2 days before resuming its uptrend.

Shanghai up 32.8% since 11th April bottom ; RSI : 60.23 (Marginally Overbought)
MAV Status : Trading above short term MAV Line 2009 PER : 16.14x

Shanghai has rallied an impressive 32.8% since its 11th April bottom. It’s higher RSI reading of 60.23 indicates that it will most likely suffer the highest percentage correction in the next 1-2 days among its key market peers.

KLCI up ONLY 2.7% since October 2008 bottom ; RSI : 39.37
MAV Status : Trading below short term MAV Line 2009 PER : 11.8x

The KLCI is under-performing all key global markets and only drifting merely 2.7% above its 29 Oct 08 closing bottom. However, it should be noted that that its 11.8x PE Ratio is above all the above key markets except Shanghai, which might be the reason for its relatively poor performance.