NVTC Newsletter070824

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 24 August 2007
THIS WEEK’S CONTENTS:

Page
1. Investment/Trading Related Articles:

The Importance of Having Structure in Trading …… 2
by Bennett McDowell, TradersCoach.com
2. Market Commentaries
i) Bursa Malaysia Kuala Lumpur Composite Index (KLCI) …….. 4
Additional KLCI analysis by Benny Lee …….. 5
ii) Singapore Straits Times Index (STI) …….. 6
Additional STI analysis by Benny Lee …….. 7
iii) Thailand SET Index (SETI) …….. 8
iv) Hong Kong Hang Seng Index (HSI) …….. 10
Additional HSI analysis by Benny Lee …….. 11
v) Dow Jones Industrial Average (DJI) …….. 12

Additional DJI analysis by Benny Lee …….. 13
3. Regional Market Forecast Group (NA) ……..
4. Regional Traders Education Events …….. 15
Disclaimer and Copyright …….. 17
© 2006 - 2007 NextView Investors Education Group. All rights reserved. 1

1. Trading/Investment Related Articles:
The Importance of Having Structure in Your Trading
By Bennett McDowell, TradersCoach.com
Few would ever argue that today, more than ever before, traders have a potentially
overwhelming amount of information to absorb, analyze and process before each and
every trade. This exorbitant amount of information can lead to chaos, confusion and
emotional trading and result in frustration and losses.
Many traders complain that they feel stressed, anxious and overworked in their pursuit of profits. A
number of them attempt to solve this problem through the use of a complex array of indicators and
an endless search for the “Holy Grail” trading system. In reality, often times, the indicators traders
rely on can actually draw them further from the “Truths” that the market is communicating at the
time and, as a result, lead to more frustration and anxiety.
After consulting with traders worldwide, I have found that most of them who feel this stress,
frustration and anxiety have one primary problem: They lack structure in their trading and have not
properly prepared themselves to trade. There is no such thing as an amateur financial market; every
time any of us trades, we are trading against professionals, so we cannot afford not to be prepared.
There are four important elements to trading as listed subsequently:
Trading the financial markets involves 4 important elements

Trading Element Definition
1. Risk Capital You need to have sufficient amounts of
capital that you can risk losing to trade the
markets.
2. Trading System A well-developed trading system supplies
you with exact trade entries and exits based
on market realities.
3. Money Management A sound risk-control approach is designed to
put the odds in your favor while ensuring
that your trading decisions are based on
probability and not emotion.
4. Psychology You must control your emotions and develop
the “Trader’s MindsetTM” to succeed in the
financial markets. A trader’s improperly
managed psychology can result in losing
trades even when he or she is using a
proven trading system.
To be a successful trader, you need to be proficient in putting all of these elements to work for you
as you trade. For example, if you have an excellent trading system but poor trading psychology, the
chances that you will be profitable are slim. Or, if you have poor money management but are great

in everything else, again, your chances of success are almost non-existent. But, here’s the thing:
While you need to master all four elements to be successful, this is exactly what makes trading so
difficult for so many.
By mastering all four of these important elements, you will add structure to your trading and reduce
stress, anxiety, fear and confusion. Adding structure to your trading helps you overcome
psychological barriers that may be keeping you from being successful. For example, traders
experiencing fear and emotional discomfort while trading usually just lack structure and / or
confidence in their trading system.
Your trading approach needs to be comprehensive and address these four important elements.
A good trading system or approach should be designed to add structure to your trading by
identifying exactly when to enter and exit markets. It should help you determine “Trade Size” and,
therefore, control your trade risk, thus reducing stress and anxiety that can lead to poor trading. By
knowing exactly when to enter and exit markets, you can determine your “Trade Size”
This alone replaces stress and anxiety with structure. The point here is that a trading system with
structure in all pieces of the trading pie will leave no room for confusion that can lead to anxiety,
which can lead to fear and stress.
So, ask yourself: Do I feel stress, anxiety and confusion when I trade? If so, think about adding
more structure to your trading approach by becoming proficient in all four key elements of the
trading pie.
Good luck and trade well.

2. Market Commentaries
i) Bursa Malaysia Kuala Lumpur Composite Index (KLCI)
Technical Analysis as of 24 August 2007
Basic Price information

Close: 1,273.52
Trend Analysis
MACD (-26.6865)
MACD has just crossed above its trigger line today, indicating a bullish reversal in the short term trend.
MACD is indicating that the current short term price trend is bullish. The momentum of the trend is strong.
Moving Averages 10-day(1,252.2560), 30-day(1,320.6826), 60-day(1,344.0571), 100-day(1,338.4279).

SHORT-Term Trend: Very bearish
LONG-Term Trend: Very bearish
Support and Resistance Analysis

Immediate Support: 1,141.5601
Longer term Support: 1,141.5601

Immediate Resistance: 1,350.0900
Longer term Resistance: 1,392.1801
100 day SMA Resistance: 1,338.4279

200 day SMA Support: 1,240.0875
Stochastic(63.8184) 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 : 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: 52,756 shares, 30-day average volume: 88,157 shares.
Volume strength is weak. The On Balance Volume is declining, indicating distribution of shares in the
market.
________________________________________________________
Additional KLCI analysis by Benny Lee, Chief Market Strategist, NextView
Slight downward correction expected
KLCI closed at 1273.52, an increase of 81.57 points or 6.84% on a week to week basis. The sharp
fall last Friday prompted investors to hunt for stocks that are heavily discounted that pushed the
KLCI up. Despite the strong rebound, the KLCI is still in a down trend. However, the down trend is
weak because of the sharp rebound. The RSI indicator starts breaking above its previous indicating a
strong upward momentum in the current rally. The KLCI is expected to increase early in the week
and a sharp increase is normally followed by a correction. Immediate support level is at 1190 while
resistance can be seen at 1325, which is the immediate pivot high on 9th of August.

ii) Singapore Straits Times Index (STI)

Close: 3,369.45
Trend Analysis
MACD (-59.1091)
Moving Averages 10-day(3,293.6221), 30-day(3,450.0679), 60-day(3,511.7688), 100-day(3,481.7405).

LONG-Term Trend: Very bearish

100 day SMA Resistance: 3,481.7405

Stochastic(77.6264) is currently slightly overbought and is getting higher.
Price Reversals
Candesticks
Bar Chart Patterns

Stochastic
Volatility Analysis
Volume Analysis
Volume: 298,852 shares, 30-day average volume: 314,663 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
More volatility with downward bias
Like most other markets the STI made an immediate rebound after falling sharply last Friday. It
recovered almost 61.8% since the fall. The down trend is still not over as the STI is still slightly
below its short to long term moving averages. However, the down trend has weakened because of
the sharp rebound upwards. With Dow closing higher on Friday, the STI is expected to increase a
little early of this week but may fall to a correction later in the week. The previous 3480 support
level is now the immediate resistance while support level is at 3100. Expect the Singapore market to
be volatile as well because of uncertainties. The STI is currently at 3369.45.

iii) Thailand SET Index

Close: 790.72
Trend Analysis
MACD (-12.1816)
MACD is indicating that the current short term price trend is very bearish. The momentum of the trend is
however, weak.
Moving Averages 10-day(780.4760), 30-day(825.9690), 60-day(802.0667), 100-day(762.1830).

LONG-Term Trend: Very bullish

Immediate Support: 732.7800
Longer term Support: 732.1300
Immediate Resistance: 842.5100
Longer term Resistance: 895.6300

100 day SMA Support: 762.1830
200 day SMA Support: 726.4116
Price Reversals
Candesticks
Bar Chart Patterns

Stochastic
Volatility Analysis
Volume Analysis
Volume: 198,470,000 shares, 30-day average volume: 373,947,168 shares.
Volume strength is weak. The On Balance Volume is increasing, indicating accumulation of shares in the
market.

iv) Hong Kong Hang Seng Index (HSI)

Close: 22,921.89
Trend Analysis
MACD (-43.3086)
Moving Averages 10-day(21,789.4375), 30-day(22,433.7910), 60-day(22,021.7207), 100-

day(21,434.7695).
SHORT-Term Trend: Bullish
LONG-Term Trend: Very bullish


Stochastic(93.6007) is currently overbought and is getting higher.
Price Reversals
Candesticks
Bar Chart Patterns

Stochastic
Volatility Analysis
Longer Term volatility: The Bollinger Bands are expanding therefore price action is more volatile
Volume Analysis
Volume: 3,329,041,920 shares, 30-day average volume: 2,115,261,696 shares.
Volume strength is strong. The On Balance Volume is declining, indicating distribution of shares in the
market.
________________________________________________________________________________________
Additional HSI analysis by Benny Lee, Chief Market Strategist, NextView
HSI expected to correct downwards
After falling sharply since last month, the HSI made an impressive comeback in the uptrend after a
sharp fall last Friday which almost created a disaster. However, the disaster was prevented because
of a sharp rebound on the second half of Friday. The rebound upwards put back the HSI on the up
trend, unlike other indices in the region which have not gone back to their previous up trend. The
increase in Dow about 1% on Friday may boost investors confidence in the Hong Kong and this may
cause the HSI to climb higher in the early of the week, but like all sharp movements in price, a
correction is expected.
The HSI closed at 22,921.89 on Friday and resistance, which is the hiostorical is just slightly above
the currently level at 23,500 while immediate support level can be seen at 22,000.

v) Dow Jones Industrial Average (DJI)

Close: 13,378.87
Trend Analysis
MACD (-87.9058)
Moving Averages 10-day(13,111.4873), 30-day(13,422.7217), 60-day(13,475.9141), 100-

day(13,331.2549).
SHORT-Term Trend: Bullish
LONG-Term Trend: Bearish


Price Reversals
Candesticks
Bar Chart Patterns

Stochastic
Volatility Analysis
Longer Term volatility: The Bollinger Bands are expanding therefore price action is more volatile
Volume Analysis
Volume: 186,056,992 shares, 30-day average volume: 289,441,920 shares.
Volume strength is moderate. The On Balance Volume is increasing, indicating accumulation of shares in the
market.
________________________________________________________________________________________
Additional DJI analysis by Benny Lee, Chief Market Strategist, NextView
DJI at down trend resistance zone
The US market started the jitters in the market with property market woes. The Fed has to lower
their interest rates to calm down panic. This prompts for a rebound two weeks ago on Friday, after
an almost stock market disaster in the early session on Friday. The DJI continues its upward rally
this week with an increase of about 300 points or 2.3% on a week to week basis. The DJI is
currently in an obvious down trend channel and the Friday’s close at 13,378.87 is at the resistance
line of this down trend channel. Therefore, the DJI is expected to correct downwards this week.
Support level is at 12,850 while the current level is at the resistance.

Regional Market Forecast Group
NOT AVAILABLE THIS WEEK

Regional Traders Education Events this week
MALAYSIA

SINGAPORE

________________________________________________________________________________________
DISCLAIMER AND COPYRIGHT NextView Sdn. Bhd. (574271-D) and NextView Traders Club (NVTC) are NOT a licensed
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
your broker or other investment advisors as appropriate before taking any action. The decision to trade and the method of trading is for
the reader alone to decide. The author, contributors and publisher expressly disclaim all and any liability to any person, whether the
purchase of this publication or not, in respect of anything and of the consequences of any thing done or omitted to be done by any such
person in reliance, whether whole or partial, upon the whole or any part of the contents of this publication. Neither NextView Sdn Bhd
(including offices in other countries) nor its officers, employees and agents, will be liable for any loss or damage incurred by any person
directly or indirectly as a result of reliance on the information contained in this publication. The information contained in this newsletter is
copyright and for the sole use of NVTC Members. It cannot be circulated to other readers without the permission of the publisher. This is
not a newsletter of stock tips. Case study trades are notional and analyzed in real time on a weekly basis. NextView Sdn Bhd does not
receive any commission or benefit from the trading activities undertaken by readers, or any benefit or fee from any of the stocks reviewed
in the newsletter. NextView Sdn Bhd is an independent financial education organization and research is supported by NVTC annual
membership fees.
OFFICES;
Head Office Malaysia: B-9-12, Block B, Level 9 Megan Avenue II, 12 Jalan Yap Kwan Seng, 50450 Kuala Lumpur, Malaysia. Singapore: 5 Shenton Way,
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10330, Thailand. Hong Kong: Room B, 16/F, Crawford Tower, 99 Jervois Street, Sheung Wan, Hong Kong. China: 98 Liuhe Road, 16A GangLu
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NextVIEW Traders Club Weekly Newsletter

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

Newsletter for the week ending 24 August 2007

THIS WEEK’S CONTENTS:

1. Investment/Trading Related Articles:

v) Dow Jones Industrial Average (DJI) …….. 12

3. Regional Market Forecast Group (NA) ……..

4. Regional Traders Education Events …….. 15

Disclaimer and Copyright …….. 17

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

Trading the financial markets involves 4 important elements

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

Good luck and trade well.

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

Basic Price information

Moving Averages 10-day(1,252.2560), 30-day(1,320.6826), 60-day(1,344.0571), 100-day(1,338.4279).

Support and Resistance Analysis

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

100 day SMA Resistance: 1,338.4279

Stochastic(63.8184) is currently in neutral zone and is getting higher.

Bar Chart Patterns

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

Slight downward correction expected

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

Basic Price information

Moving Averages 10-day(3,293.6221), 30-day(3,450.0679), 60-day(3,511.7688), 100-day(3,481.7405).

Support and Resistance Analysis

100 day SMA Resistance: 3,481.7405

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

Stochastic(77.6264) is currently slightly overbought and is getting higher.

Bar Chart Patterns

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

More volatility with downward bias

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

Basic Price information

Moving Averages 10-day(780.4760), 30-day(825.9690), 60-day(802.0667), 100-day(762.1830).

Support and Resistance Analysis

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

Stochastic(50.7829) is currently in neutral zone and is getting higher.

Bar Chart Patterns

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

Basic Price information

Moving Averages 10-day(21,789.4375), 30-day(22,433.7910), 60-day(22,021.7207), 100-

Support and Resistance Analysis

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

Stochastic(93.6007) is currently overbought and is getting higher.

Bar Chart Patterns

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

HSI expected to correct downwards

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

Basic Price information

Moving Averages 10-day(13,111.4873), 30-day(13,422.7217), 60-day(13,475.9141), 100-

Support and Resistance Analysis

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

Stochastic(65.0055) is currently in neutral zone and is getting higher.

Bar Chart Patterns

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

DJI at down trend resistance zone

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

NOT AVAILABLE THIS WEEK

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

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