Applying Elliott waves can sometimes result in unbelievable forecasts. But Elliott Waves is simply the rigorous application of rules and guidelines and you have to then follow where they lead you.

So I am surprised by the forecast I am getting on KENYA AIRWAYS (KQ)



From a top of 18.43 on 20th DEC. 2017 KQ fell in three waves to complete an ABC pattern ending at 1.89. By rules and guidelines of Elliott Waves, three wave moves are usually more than fully retraced by the subsequent wave pattern.

In our case here KQ has found a bottom at 1.89. I now expect KQ to rally to an interim target of 12.90 being the end of blue wave B. An immediate move to 5.5 should be good indication that the rally scenario is playing out. As the pattern stand now, blue wave C is Fibonacci 1 times blue wave A. So I am bullish KQ. The very negative news on KQ should serve as sentiment extreme from whence KQ should rebound. [ Buy when there is blood on the streets]

If on the other hand KQ manages to fall further below 1.35 then there will be no helping it. My Elliott forecast will have been invalidated and I will look to apply an alternate.

WILLIAMSON TEA



Williamson Tea Kenya fell from a high of 434.39 to 122.00 in five waves here labelled as blue waves 12345.

Having completed the five down move I am now bullish on this share. A move to above 166.12 will be good indication that a bull market in Williamson has started. This rally should take Williamson to above 434.39, the previous all time high, in several months to come.

This bullish stance will be rendered null if instead Williamson Tea drops significantly below our Support level of 122.00 in the coming days.

Does the 434/- account for the bonus/split in 2016?

The Capital Markets Authority (CMA) has ordered money market funds to disclose in detail where they have invested clients’ cash as well as the terms of those deals following revelations of investment gambles that have lost investors billions of shillings.

CMA acting CEO Wycliffe Shamiah said the regulator plans to audit the committees that make investment decisions after they realised some of the funds were being controlled by lone rangers.

“We have issued circulars clarifying when they do their quarterly fillings to disclose which investments as in classes, for example you do not just make a return saying; Cash, Sh1 billion, we want you to be very specific, what is in deposits, what is in cash. As we review we also ask you to explain more on the terms of those assets as you disclose them,” he said.