The Coming Bear Market?

Recently, the performance of the stock market does not perform well. Does it means that the Bull Market is coming to the end? Bear Market is coming soon? The candlestick pattern indicator is showing a weird signals. Based on the backtesting results,

HSI: Market (2007)

A breakout signal on 29 Oct 2007 with four candlesticks and then a gap drop signal to begin with the bear market. In fact, it was the beginning of a Bear Market,

If compared back to the recent HSI (2017),

Exactly the same candlesticks signals have appeared again. A breakout signal then four candlesticks and a gap drop signal with a similar Volume of transactions.

KLSE (2017)

For Malaysia Bursa, the stock market started to perform poor in June onwards. Recently, there were also a continuously 8 days of dropping in the stock market. In addition, the recent highest point in Sep was even lower than before in June, in which the market proved that the economy might be collapsing. The most critical point is 1753, better hope that the stock won't drop below that level. If not, 1727 (-3.34%) will be the next resistance line.

According to these recent performance, it is quite dangerous. However, nobody will exactly know or inform everyone that the Bear Market has arrived (not until you have almost reach to the bottom). Personally, I think everyone should re-examine your portfolio and try to get rid of useless or underperformance stocks as the market does not really look so healthy.

Technical Analysis - The wave analysis showed that this is the final wave of the Bull Market (5th wave) before the bear market has come. For those safety investors or low risk investors, short term stocks should not be considered as the current market is quite difficult to play.

Be Prepared For The Bear Market to arrive! Have you think of any strategies to prepare for the coming bear market?