KLCI set to chart all time high?...

Well, many believe the general election 13th is around the corner for Malaysia and justified that it was the reason why the KLCI is in a sideway or consolidation mode... of all the sudden today the composite index jump close to 20 points and created a bullish engulf pattern on the previous day close. So is this a sign of more to come?, we may ask ourselves?

Few points to note:

1) Governement's decision to raise the electricity tariff signals that najib is willing to push on for more reforms - which is good for the long run and economic health of the country

2) Such unfriendly decision pertaining to item #1 above will need time for it to sink into the people of the country - election is not going to be July this year because Najib needs time for the people to forget and adjust

3) Likely that the government will reduce more subsidies in the near future and also the intro of GST - good move in the eyes of foreign investors

4) Najib's administration needs money for GE13 campaign after huge spending in the Sarawak election - stocks to move up to allow "bankers" to unlock cash and provide funding.

I pesonally feel election is going to be next year Q1 but then who knows what the PM has in mind...

So in short, KLCI should be on its way to create all time high from here before pulling back to close at ~1625 by the end of 2011.

Note: To those who are superstitious, from feng shui perspective, June is a bad month though... but I beg to difer... we'll see how it turns out though.