There's no doubt the Market is now at a bull session (at least that's what the chart shows in the short term).

The BigFat Yellow downslope trendline has been penetrated weeks ago. Normally, a breakout from this strong of downtrend (The bunch of blue MA lines widely spreaded gives the clue that the investors are strongly selling) could be a fake one most of the time. That's why we need more confirmation from the indicators to make sure the the current breakout is a real one, and that the new trend could continue.

During the breakout week, the LongTerm MAs (bunch of blue MAs) has slowly shown sign of congestion, though they are still spreaded apart at a considerable width.

Now, last week's indicator has shown prove that this newly formed bullish trend should be able to last. Let's see the light blue circled area. The ShortTerm MA (white bunch of MAs) is now above the LongTerm MAs (bunch of blue MAs), and is now moving away from the LongTerm MAs, detonating that the Short Term traders are buying into current momentum. The Long Term MAs, which represents the Long Term investors, has been showing signs of strong buying lately, which is clearly shown in congestion of the bunch of blue MAs. They are now so congested that the buyers from the Investors are going to outnumber the sellers soon.

Even with all the strong bullish signals, (the 30MA, which has been staying below the 50MA for so long, has crossed over above it), we might be seeing a temporary pull back in the next few weeks towards the 12250-12500 region, due to the short term oversold indicator shown in the Stochastics.

Yupe. Buying calls will be the way to go for me.
Buy into CALLS when the stock pull back.

Something extra from this week onwards.
Would like to talk about Oil and GOLD, since these to components strongly affects how the market goes.

Whenever GOLD / OIL rise, Stock Drops, and vice versa.

Let's take a look at the light crude oil.









Oil has been toying around at the $120 region for quite some time. Although signs of overbought is shown at the Stochastics, the up trend still shows a low of power. If it couldn't make past the 120 resistance, be sure that the market will be very happy with is, and the bulls will have 1 less item to worry about.














Gold, on the other hand, has been well contained.
The 30MA has been acting as a solid resistance to it.
The breakout at the 1000 level didn't make it (the long shadow candle bar at 1033.90), and that was when the Market started the bull rally a few weeks ago. If this same thing happens to the OIL at the 120 level, how do you think the market will react? :)

This week I started looking into KLCI, hoping to get myself familiar with it before fully committing to it.

Well, seems like KLCI too has formed a Double Bottom, just like the Dow Jones. Double Bottoms are a bullish sign, normally. Last week shows that the MAs are starting to cross above. Is this the end of the downtrend and a start of a new trend? Hmmmm ........ Let's give it another week to see how it performs on the pullback, then only we will decide on the call.