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NextVIEW Traders Club Weekly Newsletter

Published by NextView Sdn. Bhd. (574271-D) Ph +6 03 27139388 Fax +6 03 27139366


Add B-9-12, Block B, Level 9, Megan Avenue II, 12 Jalan Yap Kwan Seng, 50450 Kuala Lumpur, Malaysia

Newsletter for the week ending 26 October 2007

THIS WEEK’S CONTENTS:


Page

1. Investment/Trading Related Articles:

Weekly Food for Thoughts …… 2


by YH Wong, BH Global Advisers Sdn Bhd

Coping with Risk and Uncertainty …… 4


by Brett N. Steenbarger, PhD

2. Market Commentaries
i) Bursa Malaysia Kuala Lumpur Composite Index (KLCI) …….. 7
Additional KLCI analysis by Benny Lee …….. 8
ii) Singapore Straits Times Index (STI) …….. 9
Additional STI analysis by Benny Lee …….. 10
iii) Thailand SET Index (SETI) …….. 11
Additional SETI analysis by Don Schellenberg …….. 12
iv) Hong Kong Hang Seng Index (HSI) …….. 15
Additional STI analysis by Benny Lee …….. 16
v) Dow Jones Industrial Average (DJI) …….. 17
Additional SETI analysis by Benny Lee …….. 18

3. Regional Market Forecast Group …….. 19

4. Regional Traders Education Events …….. 20

Disclaimer and Copyright …….. 23

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 1


1. Trading/Investment Related Articles:
Weekly Food for Thoughts
By YH Wong, BH Global Advisers Sdn Bhd

“The days when the U.S.


government backed the dollar
with gold are long gone. Sure,
it's backed by the “good faith
and credit” of the U.S.
government. But these days,
that will probably get you a
cheap bottle of Tequila at the
Bourbon Street.

What goes around comes around. Welcome to the fascinating world of global investing. At the time
of writing this short missive, crude oil is at new all-time high at $92, Gold is at new 27-year high and
the Euro is at new all-time high. One client reminded me that our medium term prediction of $100
oil possibly before year-end appears to be closer to reality. What should be more interesting to me is
that global stock markets have been rising right along with sharply higher oil. Why are oil and stocks
rallying in tandem these days? What’s next?

The smart money understands that US stocks are artificially inflated up by massive doses of
monetary steroids. Heavily doctored inflation statistics allow the US central bank to print money with
impunity. Hanson is one of the few U.S. Treasury Secretaries, who were actually traders. He is an
expert in managing market sentiments. If it were not for the US Treasury and Fed putting huge
amounts of money into the market, the US stock market would probably be down much more than it
is, pulling down the rest of the world including the fundamentally-sound Asian markets.

It's often been said that when the U.S. sneezes, economies around the world catch a cold. Now, the
bulls are telling us that the weakened US economy appears very much less contagious to global
economy and markets than it has in years past thanks to the impact of globalization. Someone had
asked me this question earlier, “Why do we use price charts in our daily monitoring of global
markets?” We follow a simple principle: investor psychology drives the market movements.
Behaviorally, US financial markets still drive the world markets and fundamentally, the United States
still accounts for 45% of the planet’s consumption. Global economic growth led by the over-heating
China, which has been consistently stronger than the US economic growth over the years will not be
able to bail the US out.

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 2


Over the next few years, there's a lot more money waiting to be made especially in the commodities
sector although the sector has become incredibly volatile. So what’s the smart way to trade this
volatility? You have to be careful trading the commodities. We have been long enough in the
business to tell you that oil for instance has become a market where a lot of novice traders armed
with trading softwares that are supposed to guarantee returns like to come in and try to trade it, and
they get burned out in a hurry.

Next week, everyone and his uncle will turn their attention to our good friend, Bernanke, and the
debate will be whether Ben cuts the fed funds rate by a quarter or a half-point on October 31st ahead
of the key employment data. Optimists will celebrate, telling us that the “the trend is your friend.”
Pessimists, on the other hand, will remind us that “every party eventually comes to an end.”

Desperate times call for desperate measures. Behind the scenes, the mandate given to Bernanke is
to do what's necessary to prevent a financial crisis from provoking an unwelcome recession in the US
economy. We are betting for a half-point rate cut to 4.25%. If correct, we suggest that investors
should lighten their equity positions at higher levels. Also, probably equity bears will not be allowed
to talk on CNBC over the next few days.

Currently, Asian investors seem to believe all news is good news. Asian equities have rallied over the
week on regional central banks’ willingness to allow their domestic currencies to strengthen further
amid a further downturn in the US dollar. However, there is no free lunch. Before anyone of you
start counting your chickens, remember Wall Street’s favorite disclaimer: Past performance is no
guarantee of future results.

YH Wong is Head of Strategy with BH Global Advisers Sdn. Bhd., a licensed


investment advisory firm. You may reach him or his team at (603) 2166 8896.

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 3


Coping with Risk and Uncertainty
By Brett N. Steenbarger, PhD (www.brettsteenbarger.com)

How do you cope with the risk and uncertainty built into markets, and are you coping effectively?
The topic of coping actually begins with the notion of stress. Stress is a characteristic set of
physiological, cognitive and emotional responses to threat. Generally, these responses speed up
such bodily functions as heart rate, galvanic skin response, muscle tension and rate of respiration.

For this reason, the stress response has sometimes been called the "flight or fight" reaction. In the
face of a threat, our bodies prepare us for action: To attack the source of danger or run from it.
What constitutes a source of stress is highly dependent on our perception. If we define something as
a threat, we will experience it as threatening, and that will trigger a stress response. For some
people, public speaking is an everyday activity, not to be feared at all. It might even be something
enjoyable. Others view public speaking as a potentially humiliating event. Their perception of threat
triggers the stress response that we call performance anxiety.

Cognitive psychologists, however, remind us that it is not the public speaking event itself that is
generating the anxiety but, rather, our processing of that event. Take away the perception of threat,
and the anxiety diminishes.

Some of us view the world through lenses that emphasize the threat in life events. Perhaps, we grew
up in an unstable home. Or, maybe we were overprotected and never experienced life's hard knocks.
Still another possibility is that we learned to anticipate negative events as a way of handling multiple
setbacks during a difficult period of life.

All of these scenarios can lead to stress becoming a way of life. Once we acquire habitual thinking
patterns that emphasize life's dangers, we fall into a chronic mode of flight or fight. Continually
mobilized, we can experience ongoing high blood pressure, muscle tension and jitteriness.

Psychologically speaking, chronic stress is experienced as dis-stress. Anxiety, depression and anger
are common consequences of viewing the world through the lenses of threat. These emotional
reactions, in turn, produce typical behavioral consequences, such as indecision, lack of self-
confidence, impulsivity and interpersonal conflict.

We know from cognitive neuroscience research that high levels of distress shift regional cerebral
blood flow away from the frontal cortex -- our executive center of judging, planning and reasoning --
and toward motor regions. This is why it is so difficult for people under chronic stress to calmly work
out their problems. Their perceptions of threat create physical and emotional arousal, which, in turn,
make it difficult to access the cognitive capacities most needed at those times.

Every trader knows how easy it can be to abandon a well-thought-out trading plan in the heat of
adverse market activity!

Three Styles of Coping


The term "coping" refers to the actions we take to deal with sources of threat. Broadly speaking, we
can identify three coping styles:

Emotion-focused coping -- This type of coping deals with dangerous and threatening events by
processing emotions and engaging others for support.

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 4


Problem-focused coping -- This is handling threats by focusing on the situation and ways of
dealing with it to reduce danger.

Avoidant coping -- This is choosing not to think about or deal with a problematic situation.
None of these coping styles is good or bad in and of itself. Each can be used effectively, and each
can be misused. We know that a coping style is effective when it reduces threat and produces
positive outcomes.

There are times when it can be effective to sort out our feelings and deal with them, such as after
the loss of a relationship. There are occasions when it is very helpful to be problem focused and
directly deal with an immediate emergency. Other times, we need to suppress feelings of upset and
problematic situations in order to get by in a job or as a parent. In many respects, the best coping
style is a flexible one that incorporates all three ways of handling situations.

While all of us do cope at times by dealing with feelings, attacking problems and removing ourselves
from situations, most of us have characteristic ways of dealing with threat. Those are our typical
coping patterns, and they are integral to our personalities.

For instance, if I have a significant problem, I will, very often, cease interacting with others and
become extremely task focused. At such times, my attention narrows considerably and is
concentrated on the problem at hand. This is useful in that it generally accelerates the resolution of
the problem. It is not useful in other respects, particularly, if it leads to others feeling shut out in a
team-based work situation.

If I become locked into particular ways of coping that worked for me in one setting -- or during one
period of life -- and then bring these to new situations, there is a real risk that the coping will no
longer ward off threat and may even create new conflicts. My colleagues at work who feel shut out
by my problem focus, for example, may stop collaborating with me at times when I want and need
their assistance.

This situation is much more common than people realize, and it is a source of untold trading
problems. Coping strategies that worked well at one time or in other situations are brought into the
trading arena, where they wreak havoc. Very often, this occurs when the emotions evoked by our
perception of trading situations (perceptions of failure, danger, invincibility, and so forth) trigger
coping actions from an earlier life period when those emotions were problematic.

Perhaps, for example, I felt like a failure in my growing-up years because I could not make friends
or develop relationships. This led me to cope by avoiding social situations and retreating into my
own fantasy world where I didn't have to deal with others. As a child, I may have found this helped
me through a painful and awkward period. Now, as an adult, however, responding to market losses
with feelings of failure -- and, then, retreating into fantasy -- is not constructive.

Very often, our most problematic coping occurs when we deal with threatening situations in ways
that greatly differ from our normal coping styles. During normal trading, I might be highly problem
focused. In a volatile stretch of trading when I take large losses, however, I might find myself coping
by exploding emotionally and then feeling guilty over my outburst.

Such out-of-the-ordinary coping is generally a sign that an earlier coping mode is being activated.
Something about the day's trading is triggering old memories, feelings or conflicts. As a result, I’m

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 5


no longer using my constructive, adult coping capacities. Instead, I’m mindlessly repeating a pattern
from the past.

If you find yourself overreacting to a situation, there's a good chance it's not really an
overreaction. You are reacting to the situation *and* to something in your previous life that is
being brought to the surface again by the current situation.

The first step toward progress in this circumstance is to remind yourself that you're not really
reacting to the situation at hand. "This isn't about trading," you tell yourself. "Something else is
going on." Such a reminder does not, by itself, eliminate the threat response, but it starts the
process of putting the threat into perspective. That is important.

Remember: Threat -- and stress -- are functions of perception. As you alter your perception, you
alter your responses.

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 6


2. Market Commentaries
i) Bursa Malaysia Kuala Lumpur Composite Index (KLCI)
Technical Analysis as of 26/10/2007

Basic Price information


Close: 1,398.35

Trend Analysis
MACD (14.2857)
MACD is indicating that the current short term price trend is bearish. The momentum of the trend is however,
weak.

Moving Averages 10-day(1,371.3101), 30-day(1,347.2410), 60-day(1,313.2688), 100-day(1,335.8440).


SHORT-Term Trend: Very bullish
LONG-Term Trend: Very bullish

Support and Resistance Analysis


Immediate Support: 1,339.3600
Longer term Support: 1,141.5601
Immediate Resistance: 1,398.3500

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 7


Longer term Resistance: 1,398.3500

100 day SMA Support: 1,335.8440


200 day SMA Support: 1,297.2091

Stochastic(80.0825) is currently overbought and is getting higher.

Price Reversals
Candesticks
Bullish Candlestick pattern: No bullish candlestick pattern detected in the last 3 days.
Bearish Candlestick pattern: No bearish candlestick pattern detected in the last 3 days.

Bar Chart Patterns


Bar Chart Bullish Price Reversal Pattern: No bar chart bullish price reversal detected for the last 3 days
Bar Chart Bearish Price Reversal Pattern : No bar chart bearish price reversal detected for the last 3 days

Stochastic
Stochastic Bullish Price Reversal : No bullish reversal in the last 2 days.
Stochastic Bearish Price Reversal : No bearish reversal in the last 2 days.

Volatility Analysis
Short term volatility: The 3-period ATR (17.0534) has increased therefore price action is more volatile
Longer Term volatility: The Bollinger Bands are expanding therefore price action is more volatile

Volume Analysis
Volume: 59,000 shares, 30-day average volume: 56,300 shares.
Volume strength is moderate. The On Balance Volume is increasing, indicating accumulation of shares in the
market.
________________________________________________________

Additional KLCI analysis by Benny Lee, Chief Market Strategist, NextView

Positive movement may push KLCI to test higher highs

The KLCI was expected to correct last week because of negative sentiments regarding Dow Jones
steep fall and also weakening momentum on the current up trend. The KLCI opened lower on
Monday but started to reverse upwards in the following days and it even broke the 1385 resistance
level. It closed at 1,398.35 on Friday. The momentum indicators have not changed until the KLCI
continues to make new highs this week.

The KLCI went above the 20-days Bollinger Bands and this indicates that there is a volatility
breakout upwards and therefore, this positive movement may push KLCI to test uncharted territories.
The resistance is expected to be at the psychological support level of 1,400 but there is a stronger
resistance at 1,450 based on my technical projection. The previous support level of 1,300 is now at
the pivot low on Monday, which is 1,340.

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 8


ii) Singapore Straits Times Index (STI)
Technical Analysis as of 26/10/2007

Basic Price information


Close: 3,771.55

Trend Analysis
MACD (26.1258)
MACD is indicating that the current short term price trend is bearish. The momentum of the trend is however,
weak.

Moving Averages 10-day(3,753.5889), 30-day(3,721.9185), 60-day(3,547.3174), 100-day(3,559.7891).


SHORT-Term Trend: Very bullish
LONG-Term Trend: Very bullish

Support and Resistance Analysis


Immediate Support: 3,632.9800
Longer term Support: 3,228.6599
Immediate Resistance: 3,906.1599
Longer term Resistance: 3,906.1599

100 day SMA Support: 3,559.7891

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 9


200 day SMA Support: 3,423.9478

Stochastic(27.9267) is currently slightly oversold and is getting higher.

Price Reversals
Candesticks
Bullish Candlestick pattern: Long Lower Shadow was detected yesterday
Bearish Candlestick pattern: No bearish candlestick pattern detected in the last 3 days.

Bar Chart Patterns


Bar Chart Bullish Price Reversal Pattern: No bar chart bullish price reversal detected for the last 3 days
Bar Chart Bearish Price Reversal Pattern : No bar chart bearish price reversal detected for the last 3 days

Stochastic
Stochastic Bullish Price Reversal : Stochastic crossed above its %D yesterday.
Stochastic Bearish Price Reversal : No bearish reversal in the last 2 days.

Volatility Analysis
Short term volatility: The 3-period ATR (73.9372) has increased therefore price action is more volatile
Longer Term volatility: The Bollinger Bands are contracting therefore price action is less volatile

Volume Analysis
Volume: 263,000 shares, 30-day average volume: 257,200 shares.
Volume strength is moderate. The On Balance Volume is increasing, indicating accumulation of shares in the
market.
________________________________________________________

Additional STI analysis by Benny Lee, Chief Market Strategist, NextView

Reversal on the STI

The STI closed back its price gap after a gap down on Monday. It was well supported despite
indicators showing weak trend. This Reversal on the STI indicates that the STI may climb higher this
week if it is able to go higher than last week’s high of 3782.04 and it may test the 3900 level again.
The reversal is indicated by the Stochastic indicator with support from the MACD Histogram. The STI
closed at 3771.55 on Friday. Although the STI is expected to climb higher, it shall face some
resistance as uncertainty still looms in the market. Resistance is at 3,900 while the support level
remains at 3,650.

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 10


iii) Thailand SET Index
Technical Analysis as of 26/10/2007

Basic Price information


Close: 894.57

Trend Analysis
MACD (13.8782)
MACD is indicating that the current short term price trend is bearish. The momentum of the trend is however,
weak.

Moving Averages 10-day(882.9900), 30-day(855.4360), 60-day(827.5022), 100-day(820.0508).


SHORT-Term Trend: Very bullish
LONG-Term Trend: Very bullish

Support and Resistance Analysis


Immediate Support: 851.8900
Longer term Support: 732.7800
Immediate Resistance: 911.6000
Longer term Resistance: 911.6000

100 day SMA Support: 820.0508

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 11


200 day SMA Support: 753.1953

Stochastic(57.3204) is currently in neutral zone and is getting higher.

Price Reversals
Candesticks
Bullish Candlestick pattern: No bullish candlestick pattern detected in the last 3 days.
Bearish Candlestick pattern: No bearish candlestick pattern detected in the last 3 days.

Bar Chart Patterns


Bar Chart Bullish Price Reversal Pattern: No bar chart bullish price reversal detected for the last 3 days
Bar Chart Bearish Price Reversal Pattern : Island Reversal DOWN detected today

Stochastic
Stochastic Bullish Price Reversal : No bullish reversal in the last 2 days.
Stochastic Bearish Price Reversal : No bearish reversal in the last 2 days.

Volatility Analysis
Short term volatility: The ATR has declined therefore price action is less volatile
Longer Term volatility: The Bollinger Bands are contracting therefore price action is less volatile

Volume Analysis
Volume: 195,690,000 shares, 30-day average volume: 209,664,528 shares.
Volume strength is moderate. The On Balance Volume is increasing, indicating accumulation of shares in the
market.
________________________________________________________
Additional SETI and stock analysis by Don Schellenberg, Senior Market Strategist,
NextView

SETI Analysis

A week or so ago many market analysts were expressing worries that Asian financial markets might
be collapsing.

Exactly a week ago I wrote a contrary view in this column that instead of collapsing, the immediate
Support was at 860.and that soon the Index would rise again to test the 900 area.

As we can see on the chart, the area of 860. held as support, and the market has since moved up
quickly to the 900 area, actually somewhat faster than I expected.

I also suggested that a week later, which is now, we should have a better idea what will happen next.
In fact, the analysis is not quite so simple. On Thursday and Friday of last week the Index shot
almost straight up to test the previous top to a new all-time high of 911.60. You can see a gap on
the chart, which occurred during the week, but upward follow through after the gap has been
relatively weak.

Very likely there will be some sideways motion for a few days before the Index breaks through to
another new high, beyond 912.

TECHNICAL INDICATORS

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 12


Today’s chart is made from 60 minute bars, (candles), rather than the usual daily variety. This is an
example of how intraday charts can sometimes provide useful information to traders and investors.

Li’s Sandwich – the upper


line of this channel is
approximately where the
market closed on Friday.
Of course these lines
cannot prevent the value
from moving higher, but
this indicator which is
exclusive to NextView
charts, does at least
suggest where some
Resistance may be
encountered.

NextView RSI – this has


moved up to an
Overbought area,
suggesting that we may
be due for a correction
soon.

R1 and R2 – nearby areas of resistance


S1 – nearby support for the current upward move.

ATC.TH Analysis

I haven’t commented on this stock since June 2007. At that time the stock was going down when I
suggested that it should soon resume it’s upward direction at least to 66-70. In fact it reached a
high of 80 in late July before beginning a sideways correction.

At this time a further drop to around 65-62 remains a strong possibility. The correction should soon
be complete, after which a new high over 80 should be attained.

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 13


TECHNICAL INDICATORS

Guppy MMA – The multiple


moving averages on the
cart show that the longer
term moving averages have
not yet been broken to the
downside, and will not likely
be seriously damaged by a
quick move down to support
at S1 and up again.

MACD – even though the


sideways correction has
continued on for 3 months
already, the MACD is still in
positive territory, above it’s
“0” line.

R1 – Resistance zone between 78-80.


S1 – Support at 62.

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 14


iv) Hong Kong Hang Seng Index (HSI)
Technical Analysis as of 26/10/2007

Basic Price information


Close: 30,405.22

Trend Analysis
MACD (1,111.9149)
MACD is indicating that the current short term price trend is bearish. The momentum of the trend is however,
weak.

Moving Averages 10-day(29,344.1191), 30-day(27,494.5977), 60-day(25,100.9648), 100-


day(23,901.7891).
SHORT-Term Trend: Very bullish
LONG-Term Trend: Very bullish

Support and Resistance Analysis


Immediate Support: 27,203.9102
Longer term Support: 19,386.7207
Immediate Resistance: 30,562.6309
Longer term Resistance: 30,562.6309

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 15


100 day SMA Support: 23,901.7891
200 day SMA Support: 22,058.7480

Stochastic(88.8822) is currently overbought and is getting higher.

Price Reversals
Candesticks
Bullish Candlestick pattern: No bullish candlestick pattern detected in the last 3 days.
Bearish Candlestick pattern: No bearish candlestick pattern detected in the last 3 days.

Bar Chart Patterns


Bar Chart Bullish Price Reversal Pattern: No bar chart bullish price reversal detected for the last 3 days
Bar Chart Bearish Price Reversal Pattern : Key Reversal DOWN was detected 2 days ago

Stochastic
Stochastic Bullish Price Reversal : No bullish reversal in the last 2 days.
Stochastic Bearish Price Reversal : No bearish reversal in the last 2 days.

Volatility Analysis
Short term volatility: The ATR has declined therefore price action is less volatile
Longer Term volatility: The Bollinger Bands are contracting therefore price action is less volatile

Volume Analysis
Volume: 3,197,373,952 shares, 30-day average volume: 2,659,008,768 shares.
Volume strength is moderate. The On Balance Volume is increasing, indicating accumulation of shares in the
market.
________________________________________________________________________________________

Additional HSI analysis by Benny Lee, Chief Market Strategist, NextView

More upside for HSI

The HSI did not want to take a breather last week and continue to close at historical high on Friday
at 30405.22. Already 10 consecutive weeks of up closes and would probably have more. Despite
having weaker momentum 2 weeks ago, it did not stop the bullish sentiment of investors in the
Hong Kong market. The HSI shall remain in an extremely bullish mode if it is able to stay above the
30,000 level. If it breaks below this level, then the HSI is expected to go sideways with an upward
bias. The next resistance level is at 31,640, based on my price projection.

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 16


v) Dow Jones Industrial Average (DJI)
Technical Analysis as of 26/10/2007

Basic Price information


Close: 13,806.70

Trend Analysis
MACD (4.1025)
MACD is indicating that the current short term price trend is bearish. The momentum of the trend is however,
weak.

Moving Averages 10-day(13,801.6162), 30-day(13,855.7891), 60-day(13,553.4756), 100-


day(13,559.2227).
SHORT-Term Trend: Very bullish
LONG-Term Trend: Very bullish

Support and Resistance Analysis


Immediate Support: 13,407.4902
Longer term Support: 12,517.9404
Immediate Resistance: 14,198.0996
Longer term Resistance: 14,198.0996

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 17


100 day SMA Support: 13,559.2227
200 day SMA Support: 13,157.8486

Stochastic(39.3106) is currently in neutral zone and is getting higher.

Price Reversals
Candesticks
Bullish Candlestick pattern: No bullish candlestick pattern detected in the last 3 days.
Bearish Candlestick pattern: No bearish candlestick pattern detected in the last 3 days.

Bar Chart Patterns


Bar Chart Bullish Price Reversal Pattern: No bar chart bullish price reversal detected for the last 3 days
Bar Chart Bearish Price Reversal Pattern : No bar chart bearish price reversal detected for the last 3 days

Stochastic
Stochastic Bullish Price Reversal : Stochastic crossed above its %D yesterday.
Stochastic Bearish Price Reversal : No bearish reversal in the last 2 days.

Volatility Analysis
Short term volatility: The ATR has declined therefore price action is less volatile
Longer Term volatility: The Bollinger Bands are expanding therefore price action is more volatile

Volume Analysis
Volume: 311,391,008 shares, 30-day average volume: 221,390,064 shares.
Volume strength is strong. The On Balance Volume is increasing, indicating accumulation of shares in the
market.

________________________________________________________________________________________

Additional DJI analysis by Benny Lee, Chief Market Strategist, NextView

Sideway range expected

DJI rebounded on Monday after testing the mid-term 60-day moving average. The DJI can continue
its up trend if it is able to break and stay above the 14,000 level. If not the DJI may reverse
downwards again is it fails to break above this level. The DJI closed at 13806.70 on Friday. It is still
early to indicate the momentum of the price movement, more information is needed because the
price momentum was weak the week before last week and last week’s upward rally may change the
momentum.

Therefore, the 14,000 level is a crucial level and the DJI must break above this level to stay positive
or else a reversal downwards is expected with immediate support level at 13,400.

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 18


3. Regional Market Forecast Group
AVERAGE FORECAST SUMMARY as at 26 October 2007
KLCI STI HSI SETI
TODAY'S CLOSE 1,398.35 3,771.55 30,405.22 894.57

A Forecast (Direction) U S U S
Forecasted Weekly Trading Range
B Support (Low) 1345.0 3675.0 29900.0 880.0
C Resistance (High) 1435.0 3900.0 31320.0 915.0

A FORECAST DIRECTION
Benny Don Richard Li Xin Jing Steve AVG
1 KLCI U U U
2 STI S U S
3 HSI U U U
4 SETI S U S

B FORECAST RANGE (SUPPORT / WEEK LOW)


Benny Don Richard Li Xin Jing Steve AVG
1 KLCI 1340.0 1350.0 1345.0
2 STI 3650.0 3700.0 3675.0
3 HSI 30000.0 29800.0 29900.0
4 SETI 880.0 880.0 880.0

C FORECAST RANGE (RESISTANCE / WEEK HIGH)


Benny Don Richard Li Xin Jing Steve AVG
1 KLCI 1420.0 1450.0 1435.0
2 STI 3900.0 3900.0 3900.0
3 HSI 31640.0 31000.0 31320.0
4 SETI 910.0 920.0 915.0
Note:
Forecast Direction S = Sideway U = Up D = Down
Sideway market is considered if the index falls between 0.4% of the index close on Friday
Sideway Range Calculation Close Sideway Range
KLCI 1398.4 1392.8 to 1403.9
STI 3771.6 3756.5 to 3786.6
HSI 30405.2 30283.6 to 30526.8
SETI 894.6 891.0 to 898.1

Direction is based on next Fridays close. If next Friday's close is above the sideway range, direction is considered up
and vice versa for price below sideway range

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 19


4. Regional Traders Education Events this week
MALAYSIA

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 20


HONG KONG

© 2006 - 2007 NextView Investors Education Group. All rights reserved. 21


© 2006 - 2007 NextView Investors Education Group. All rights reserved. 22
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investment advisors. This publication, which is generally available to members of NVTC, falls under Media Advice provisions. These
analysis notes are based on our experience of applying technical analysis to the market and are designed to be used as a tutorial showing
how technical analysis can be applied to a chart example based on recent trading data. This newsletter is a tool to assist you in your
personal judgment. It is not designed to replace your Licensed Financial Consultant, your Stockbroker. It has been prepared without
regard to any particular person's investment objectives, financial situation and particular needs because readers come from diverse
backgrounds, with diverse objectives and financial situations. This information is of a general nature only so you should seek advice from
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