Ooi Teik Bee - Will there be any stock market crash in 2016 ?

Will there be any stock market crash in 2016 ?

Author: Ooi Teik Bee | Publish date: Sat, 13 Feb 2016, 10:52 AM

Dear valued readers,

I enclosed 3 charts for your perusal.
FBMKLCI
FBMEMAS
Dow Jones Industrial

KLSE is the strongest market in this planet. There is no lower low in both FBMKLCI and FBMEMAS.
Other indexes like S&P 500, Nasdaq had dropped to create a lower low, hence they are down trending now. Likewise, European markets, Japan, HSI and China.
DJI is not down trend yet.
Major support for DJI is 15652 and 15366. I will not worry if the aforesaid supports are not broken.

Will world stock market crash ?

I do not think there will be any major world market crash due to the following factors :-

1. I will only worry if there is a stock market crash in US, but not in any part of the world. 
2. 2016 is an election year in US, so far there is no record of world market crash during US election year.
3. Economy data is getting better and better in US, likewise unemployment data.
4. There is not any major crisis in US so far.
5. The FED will likely to reduce interest rate instead of hike interest rate in 2016. The Fed is considering to adapt negative interest rate in US.
6. The whole world is reducing interest rate until negative interest rate in Japan and Europe. No chance for Japan and European markets crash.
7. China stock market will not crash, support is around 2000 point which is no far away. Please note that China is the richest country in this planet.

Strategy

1. Do not buy any stock if you do not have any holding power. Please stay out.
2. If you are uncomfortable, please cut loss on small loss stock.
3. If the loss is too big and FA of the stock is very good, just hold on.
4. If you have money in FD and do not need this money, please buy on cheap sales. Stock market will gain in longer term.
5. I will withdraw my FD to buy in next few days like in August 2015. 
6. I will only buy those stock whereby the price is above 200 days SMA and FA is very good. They must passed my stock selection criteria (UBSGM).

Final decision is yours.

Thank you.

Ooi