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See the 'Bearish Opportunity' Forecast that Preceded Malaysia's Recent 4 Percent Plunge
Here’s how The Asian-Pacific Short Term Update anticipated the drop

By Nathaniel Williams
Thu, 24 Jan 2013 10:30:00 ET
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Most of us want a reason why things happen the way they do. So when Malaysia's Kuala Lumpur Composite Index (KLCI) plummeted 4.4% from Jan. 21 to its intraday low on Jan. 22, mainstream financial analysts immediately cast about for an explanation. The most commonly cited scapegoat was Malaysia's election:

·        "Malaysia stocks slump as investors wake to election risks" (Reuters, 1/21/13)
·        "Malaysia Stocks Slump to Six-Week Low on Election Concerns" (Bloomberg, 1/21/13)
·        "Impending election unnerves Malaysia's stock market, retail sector" (Channel News Asia, 1/22/13)
But before the plunge -- and before the media's after-the-fact blame game -- EWI's Asian-Pacific Short Term Update anticipated the developing storm.
On Jan. 10, the KLCI was at 1685, just off a 20-year high. That day, Asian-Pacific Short Term Update editor Chris Carolan identified a developing Elliott wave pattern, confirmed by his technical indicators, with specific implications for the near-term trend. He alerted his readers (emphasis added):
"The KLCI has been prone to large price swings in both directions recently. [Asian-Pacific Short Term Update] caught the bulk of the November decline following the first down day. Now, the daily Jurik RSX has turned lower once again in the KLCI. A bearish opportunity for another steep decline in Malaysian equities is present now. We are short-term bearish on the KLCI. ... A return to the 1600 level is a reasonable target for a decline in the KLCI."
Carolan's forecast was bold, specific -- and spot-on. Prices soon plunged to an intraday low of 1602, right at the 1600 level he targeted. You can see the sharp move in the chart below.
Carolan didn't need fundamental analysis to make his forecast, nor did he conjure up after-the-fact explanations for the drop. Instead, he simply applied the objective rules and guidelines of the Elliott Wave Principle along with a trusted technical indicator to the KLCI price charts. Not every forecast works out, but this one certainly did.
Put yourself ahead of the next actionable, near-term and intermediate-term trends. The Jan. 22 Asian-Pacific Short Term Update gives you what might be next for Malaysia's KLCI -- along with a new specific, crystal-clear opportunity in another regional index. Prepare yourself for what's next, risk-free>>
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China, India, Japan, Australia and More: Equip Yourself to Ride the Trends
The Asian-Pacific Financial Forecast Service gives you more usable analysis in one month than the traditional financial media will give you in one year. You'll get instant access to:
The Asian-Pacific Short Term Update. Chris Carolan equips you to ride the near-term trends of Asia's most important markets with chart-filled updates  three times a week.
The Asian-Pacific Financial Forecast. The latest monthly issue delivers 18+ new opportunities for 2013 with in-depth forecasts and objective analysis for China, India, Japan, and more.
The Elliott Wave Theorist. Every month, Robert Prechter puts the larger market trends into context with a unique perspective and unparalleled insight.
Plus, your risk-free subscription includes FREE access to Chris Carolan's 49-minute online trading course, "3 Technical Indicators to Help You Ride the Elliott Wave Trend." ($49 value)

FFSThe Asian-Pacific Financial Forecast is the world's most forward-thinking investment letter for Asian-Pacific markets.

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