RED KAGI SPROUTS GREEN >>> Light at the end of the tunnel?

Dow Kagi Chart

A little green herb to stop the bleeding?

The bearish indications shown by the redness of the Dow Kagi Chart over the past year is suffice to say >>> BLOODY. It was, and still is a gory scenario with grizzlies mauling everyone in it's path along Wall Street to Europe and Asia. From global financial institutions right down to the man-in-the-street; non-investors included, no one is spared. No prisoners taken.

Financially, it is beginning to feel like total annihilation. Armageddon.

Everything looks so hopeless when even the KLCI can drop 4.88 pts or 0.57% to 850.37 a hairbreadth above critical KLCI 850 support when DJIA gained 390++ the previous night.

Mini budget? Stimulus package? WTF are those and what are their worth to Bursa?

Nothing. Nada. Ziltch

Investors here are so fearful, they are all running around like ayam kampung - with or without a head. Bears are not exactly vegeterians are they? Can't blame them. Even our bullish CPO market cannot save our souls yesterday, today or tomorrow?

Chartwise, KLCI never looked more vulnerable than ever not even during the 1997 financial crisis period. Our Malaysian ringgit is hoovering around 3.70+ and threatening the Dr M's 3.80 peg. If MYR hits 4,00 rgt to the USDollar, we are cooked. The implications? Believe ZL, you don't want to know.

Who can stop the bleedings? Nobody. Like this matilah? Not really .......

Since we cannot depend on heroes or fengshui to save our asses, hightime to switch divine directions from KLCI to the Dow or NYSE aka Holy Temple Of Investment.

From sleepless nightmares to bloody sightings, ZL also see a little green .... I'm an optimist remember? And ZL trades little or no stocks worth mentioning >>> hehehehe!!!

The Kagi >>> a rarely used chart had sprouted a little green extension. Like a cotyledon, this is a primary leaf of plant embryos. Growth? Hope? New life? Pessimists please stop reading. TQVM

If you want to roll over and die, be my guest but ZL is not going down without a fight. Something is always better than nothing and we'll begin watching that little cotyledon sprout in the Kagi and take it from there.

Pray this little leaf grows for our hopes will die with it when KLCI breaks 800.

What Does Kagi Chart Mean?
A type of chart developed by the Japanese in the 1870s that uses a series of vertical lines to illustrate general levels of supply and demand for certain assets. Thick lines are drawn when the price of the underlying asset breaks above the previous high price and is interpreted as an increase in demand for the asset. Thin lines are used to represent increased supply when the price falls below the previous low.

An entry signal is triggered when the vertical line changes from thin to thick and is not reversed until the thick line changes back to thin.

One important note about these charts is that they are independent of time and only change direction once a predefined reversal amount is reached.

All de best 2u