MARK's Column

Prof. Kai Keung Mark is a retired professor, Dept. of Biology, The Chinese University of Hong Kong and Dept. Head and Principal Lecturer, Dept. of Science, Hong Kong Institute of Education. He has three biotechnology patents. He uses his understanding of high technology to forecast market movements . He has published 13 articles in Financial Trend, and leading Hong Kong stock analysis journal plus many other Mark's letters since 1987. His prediction reliability rate reached 80%. He accurately predicted the October crash (10/18/87), the bottom level of 1990(3/5/90), the peak level of 1994 (5/11/92), the peak level of 1997 (2/12/96), the peak level of 2,000 (8/22/99), the peak in March 2000 (2/20/2000), and the bottom in September, 2001.

HK Market and NASDAQ DOWNTURN

May 5, 2000

Readers should be cautious of the recent trends in both Hong Kong and NASDAQ market.

Hong Kong market is facing a critical period in the near term. If the support is broken on (Line B), a bear market is imminent.

This is further seen in the details of the following chart with narrower range:

From 1998 to 2000, the nasdaq was bullish. When it tumbled from 5000 and bounced back, it hit exactly the support line. If it broke through the bottom of the support line, a significant bear market is obvious.

Recently, the nasdaq has shown three signals of downward movements:

(1) Wedge formation during Feb to mid March, 2000, breaking downside implies a down turn is near;

(2) Double top indicating bearish market;

(3) For the moment, NASDAQ has penetrated the second fan line upside.

The information above is supplied by the author specially for InTechTra's Hong Kong Stocks Report. The opinions in this special column is solely that of the author and may or may not represent the views of Hong Kong Stocks Report. InTechTra is indemnified for any damage or loss that might be associated with the use of the information.