31st August 2006

The 2007 Budget will be on tomorrow. As indicated, this budget is designed to stimulate the economy which has not been that great for the average person this year.

August has been a great month for the market. I suspect it was held up by government linked funds to make the budget and the Government looked good.

And now I shall reveal my Interactive Strength Index (ISI) forecast for September 2006.

I expect the market to continue to move up till Wednesday 6th. Thursday and Friday will see the market correcting sharply in anticipation of the next week’s steady move up.

If you are into Index Future trading, buy on Friday’s low.

Cover you long on either the 18th or 19th of the month. ISI indicates that these two days are highs for the month.

Please remember that Puasa starts on the 26th if I am not mistaken. Generally the market quiets down for the Ramadan Month. We shall see.

So you have it.

To summarize the ISI forecast for Sept:
1. Market will move up on Monday till Wednesday.
2. Thursday and Friday will see the market sharply down.
3. Market will recover the week after from the 11th to the 15th.
4. The high is likely on the 18th or 19th of the month.
5. Market is likely to drift downward in anticipation of the Ramandan month after that.

Happy Trading.

Invest wisely and always remember the golden rule in Future trading, cut your losses when you are wrong.