In stock market we need investors in trading market and sometime we require traders in investing market. Psychologically speaking the market will not runaway from the common psychology terms like optimism, thrill, anxiety, panic, capitulation,anger, disbelief, complacency, belief etc. Trader and investor are good partner and they always substitute each other to make sure the market roll.

Most of the new investors step in market during optimism stage, at this stage trader and investor also have concurent view that market in recharged uptrend. AFter that you will realize trader has stronger belief that "I was correct before so I would invest big this round". Next step another thrilled trader jump out "See, I sell everything to buy this counter because their I know their CEO and bla bla". Suddenly when all heading to the peak and just a little step before the peak then euphoric will jump out "Sell everything and market going to plunge very n, BOH CHOW C-c-c-c-c-c-". There the market start to retract from the peak (where you see 7 years economic cycles's peak). Of course unlimited source and uncertified news will flow in to the market proposing up and downtrend as it form the complacency.  Either the expert will leave the market and retire in Hawaii or those got heavily burnt off would leave the market forever. Due to the low volume trade might as well hedge fund press down the market and wait for it rebalance. Anxiety take place and Investor jump out "See, ask you dont contra but to learn how to invest in value stocks". Usually, small retailers or new traders(I wont say new investor because investor mean a person invest his/her stock for certain period and take into account of the market change but invest in the company fundamental growth). Market plunge and undergo major correction this moment weak heartbeat trader panic, deny defeat, panicking again and "Dont know what to do anymore". 

Based on psyhcology teory the longer the capitulation period the firmer the downturn signal and the firmer the rebound after that. Mixed feeling here by two different view trader group. One will curse governmnet of the bailout programe and to warn the off balance effect when market fail to reflect actual economic behaviour. On the other hand another one also curse the government who came late to intervene & support the market which had resulted them in heavily loss. At this critical depresion moment Investor come in again "The worst is over. In current condition it's the best time to buy share not only can earn from currency appreciation but also earn up from Major commodities & share price increase". ...................................................as I said before trader start to regain their confidence then walk in again and keep the market roll.

Trader and investor are good actors in stock market. Both of them can be on BUY side or SELL side and the most crucial point is whether you choose to be early bird, intermediate hunter or late worm in the profiting process.

What is going on for our stock market esp. KLCI?

Do you spot anything from the raw chart?

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How about this?

Because of trader and investor's substitution and money flow plus economic natural laws the trend will repeat for itself. You may try to workout both A1 vs A2 and C1 vs C2.  

A1 vs A2 present to us about the Bollinger band with similar market "sentiment" should consolidate for a while

C1 vs C2 present to us about the trend will be replicated until the market reaches its equilibrium stage. C1 and C2 prohibit the same action-reaction movement but C2 show slight lower rate in behaviour.

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Malaysia is a wonderful country I must tell you.  We are protected by external factors in fact therefore, we can easily overcome our financial disaster without kow-tao to IMF or latest FBI (hahah.....kidding).

Malaysian demand for Strong Ringgit currency
: US FED will kickoff bunches of cooling measures to devalue USD; to boost up corporate earning. Malaysia enjoy Ringgit rebound benefit

Malaysian demand for oil export as it contributes about 30% of our GDP
: So far so good. Even though gov's revenue was trimmed badly but I believe the benchmark of light crude price at USD45 is an adequate cushion for Malaysia's economy

Malaysian demand for Crude Palm Oil price as it contributes about 6% of our GDP
: El Nino could be a strong catalyst for CPO price in near term. Palm oil industry seize the 6% weightage out of 7.1%(2014 GDP) from total agriculture contribution. CPO price rose enable the margin improvement in entire supply chain like logistic, banking, plantation, manufacturing .

Be confident in our country, here are the push factors for our economy.

1) Malaysia is the most attractive country to invest under Emerging category due to the attractiveness of YTD -19%  decrease in International Reserves. How? High Government & Corp Bond Yield and indirectly add value to stock market

2) Valuecap is already "proven" - a successful market stimulation method  to restore foreign investor confidence. Businessman dont bother about your personal family affair but more focus on commercial value. They will come should there is profiting value to them.

3) Strong booster of RM 50 billion by state fund to handle Foreign Fund disposal- It is another strong booster to warn pre-exit FF. Dont miss out the opportunity. We can do better without you. So FF will stay back.

4) Till todate the Foreign Fund participation is around 22% in our equity market as it is still far from the previos historical peak at 29%. Big room for FF to invest until they conclude this emerging market is concentrated.

5) Myanmar's Yangon Stock Exchange will be commenced in December 2015. The spotlight will shoot at Southeast Asian Emerging markets again. Traditional top pick are Malaysia, Indonesia, Philippines and Thailand.

6) TPP was anticipated to stimulate local businesses from rubber & glove, palm oil, electronic etc. No doubt it creates another argument on competitiveness disadvantege of our consumerism sector and US big boy's agenda.

Conclusion: With all the pull and push factors my read for market is the reasonable and measureable index range can be quantified  in between 1660-1760.  For time being the immediate support of 1680 and strong support of 1642 are strongly  to be relied on. You may start to invest in undervalued & good prospects counters while trading in themed play sector from time to time. We are around the end of economic slow down and recession will take place for certain short period before the STRONG RECOVERY in July 2016.