From the recent past school holiday, I notice one stunning phenomenon: rich dads are going to holidays. Please look at the following recent KLCI chart. You'll see this stunning discovery:
One crazy observation is that whenver the rich dads are going to holiday with their kids, the KLCI was stagnant or dropped slowly. But when the rich dads are back from the holiday, the CI surged. It has been quite consistent for the past few recent holidays.
One minor exception is the CNY 2010. Since everyone needs money before the CNY, the sell-off starts two weeks before the new year. The last few days before the Chinese new year, the CI surged due to the fact, selling at those time won't see the cash due to the T+4 cash release hold period. One consistent observation is that there will be a surge after the school holiday. Will it happen to this one week short holiday? Will dads sell their shares last week and come back to buy back shares they sold next week?
This is just a common sense. Whenever there are more people buying stocks, the stock price will go up and vice versa. That explains why CI surges every time the school holiday is over as rich dads buy stocks when they are back to work or to invest in stock market to earn back the money they spent (poor dad).
Since this week is a holiday week, will volume drop to indicate good buying opportunity? Will CI go back up next week if it drops this week? We'll see. It's just a crazy theory.
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