Indicator Y Short 2331 Short 1793.0 - Short Sellers Targeted Malaysia

If cpo futures price is staying positive in the morning trading sessions, the short term indicator Y will probably do its stop and reverse buy in the afternoon. Otherwise, the short 2231 is remained.

As mentioned in previous post on FKLI stop and reverse trade signal if the index futures is closed below 1802, the short term indicator Y on FKLI will take profit and turn sell.

Took 64.5 index points of profit after seeing the high 1817.5 and turning sell 1793.0, the indicator Y is actually giving up more than 20 index points of floating profits.

Bloomberg news excerpts:

Short sellers are taking aim at the world’s longest-running equity rally.

Short interest in the iShares MSCI Malaysia exchange-traded fund more than doubled in the past month to 20 percent of outstanding shares as of Monday, and reached an eight-year peak of 23 percent on Jan. 9. That’s the highest level among 89 U.S.- listed ETFs focused on emerging-market countries, according to data compiled by Markit Group Ltd. and Bloomberg.

Bears are stepping up wagers against Malaysia after the benchmark equity index advanced 116 percent from its October 2008 low in the longest bull market worldwide. Oil’s 58 percent tumble since June has weighed on the crude-producing nation, with analysts predicting the weakest profit growth since at least 2009 and overseas investors pulling money from the $454 billion market at the fastest pace in six years...

“Investors are worried Malaysia’s economy will be affected by lower oil prices,” said Alan Richardson, whose Samsung Asean Equity Fund...

The government cut its 2015 economic growth forecast to as little as 4.5 percent on Jan. 20 and predicted a bigger budget deficit than initially targeted. Oil and gas products account for about 20 percent of the nation’s exports. “With less revenue, the government will have fewer options to stimulate the economy,” Daphne Roth, the head of Asian equity research at ABN Amro Private Banking...

The last time short interest in the Malaysian ETF was this high, in October 2006, the bears got burned. The KLCI index rose about 38 percent in the following 12 months, versus a 55 percent gain for the MSCI Emerging Markets Index...

“Those who shorted in 2006 all got killed,” said Raymond Tang, chief investment officer for the Asean region at Kuala Lumpur-based CIMB-Principal Asset Management Bhd., which manages about $17 billion. “We are still fairly comfortable with our holdings in Malaysia.”...

Full write-up click HERE.