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).

Time to sell

The author did forecast as early as Dec. 4, 2008 that a dramatic rebound will come before the technical signals has confirmed. His second article (April 19, 2009 ) stated that the signals has confirmed, and the rebound will still be dramatic, and way above investor's expectation at the time during Dec. 2008.

Now the world markets, especially the Hong Kong maraket demonstrated a forceful up swing, thus those who believe in the author's forecasts should have made considerable gain in their speculative buying, and for those who got traped is now partially free.

To be successful in stock market trading, one must understand and remember that stock price will swing like a pendulum both upward and downward. Financial big names frequenstly make stupid remarks, saying that given the present economic situation, a "reasonable" price should be such and such. This is very misleading statement because in the speculative stock market world, there is NO "reasonable" price level. The price level is either too high or too low governed by the market sentiment at the time.

The author's success in making such a dramatic forecast because he noticed that investment sentiment become very bearish due to the serious economic down turn. So world markets swing down like a pendulum into an excessive state, thus it has to swing back as one expect the pendulum would behave. The current up swing as forecast by the author, is mostly due to this pendulum pattern, while the economic recovery outlook play a small part.

Now the author wants to make another forecast that the stock market up swing will soon reach its up side limit of its pendulum pattern, and a significant down swing will come. Therefore, it is time to start selling. One can either sell in steps, or look for top signals such as penetrating the up wedge down side. Another sign that the end is near coming from the author's favorite candidates, the penny stocks. When they rise, the top is around the corner!