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), the bottom in September, 2001, the US bottom in 2003 (5/28/2003), the HK bottom in 2003 (6/13/2003), the US peak in 2007 (11/14/2007), and the HK peak in 2007 (1/9/2008).

The Bull Trend Will Continue

The author expects that Hong Kong stock market to come to a correction as expressed in his last article (October 1, 2003) entitled "Another Buy Opportunity Coming" and the HK stock market d id make a clear correction by many blue chip stocks, for example, Hutchison (see fig. 1).

Hong Kong made the first correctional signal with Hang Seng index dropping 500 points, followed by one and a half months of slow correction. But the extent of correction is smaller than the author's expectation. Japan's NKY made a significant correction after forming a double head formation (see Fig 2)

US did break a small wedge downside followed by a widening formation resulting in a slow upward channel without a clear turn signal (Fig 3). Recently DJIA even breaks the upper return line of the channel, implying that a faster rate of rise will come.

Now the world stock market has gone through about two months of slowing down or correction, and the author expects the bull trend will continue. Therefore, it is time to consider buying more stocks especially those who missed the initial bull sign.