HKHSI and NASDAQ Downturn (5/5/2000)

Major Correction in the Horizon (4/15/2000)

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.

US Bull Market Confirmed

The author's last article (4/22/2003) speculated that DJIA will form a head and shoulder bottom, and this speculation is now proven to be correct. DJIA has now broken the neck line (NL) (see Fig. 1) upside, completing the head and shoulder bottom formation. This is a very important signal from technical stock market analysis and forecasting because DJIA is the leading indicator for US economy as well as the world stock markets. When one see bull signal from US market, one expects other stock markets especially those in Asia to follow suit. Head and shoulder formation is the most reliable chart formation so far, so do not take this signal lightly. Head and shoulder formation is also important because it has a very reliable measuring scale. When the head and shoulder formation is confirmed by breaking the neck line (NL), the extent of rise to follow usually equals but frequently more than the distance between the head and the neck line. This imply that DJIA will reach 10,400 points within two years. Those investors interested in getting in, but missed the initial upshot after breaking the neck line need not worry. The DJIA will come back down and hit the neck line (NL) from above soon. This is also a feature of the head and shoulder formation, and the author name this as the kiss good-bye (KG).

As given in the last article (4/22/2003), Hong Kong's HSI is trailing behind DJIA because of the SARS epidemic, but recently HSI also moved upward breaking a long fan line (see Fig. 2). With DJIA showing a bull sign, the author expects HSI to form a bottoming out formation. As Hong Kong stock market is battered by many bad factors like the SARS epidemic, disaster in hotel, restaurant, and tourist industries, depressed property market, one sees blood in the street. So it is time to BUY.