A frustrated country, a shot in the arm to KLCI

After almost 1 year of speculating on dates, hundreds of ceramahs, billions of facebook posts and finally with blackout photos, GE13 is over.While a slim majority of the vote went to Pakatan Rakyat, the KLCI went ahead and celebrated like it was a major coup by Barisan Nasional. Since the majority of votes went to PR, do we have a right to withhold our taxes to the government?

At closing, KLCI was at 1752 points and even went to an all time high of 1862 points.. its as if the market was on a hot date and was holding a fart for erm.. 1 month? And then the date was over and he could finally let it go.

In fact, the KLCI opened at 1799 points, a 6% increase from last Friday's close. Most days the KLCI doesn't even move by a percent.. looks like all the fund houses were sitting on a pile of cash and had their computers set on 'buy at inflated prices' in the event of a BN victory. The reverse would have probably happened in the remote chance of a PR victory.. However I don't foresee there to be much retail trading for the near future, until all the political heat has dissipated. Based on the 14 day Relative Strength Index (RSI) indicator, the KLCI has been overbought (above 70% RSI) since March. Perhaps a correction could be seen in the next few weeks. But thanks to today's sudden jump, it would probably not drop to levels much below that before elections were announced, possibly in the 1600-1700 range. 

Now to the elections.. Contrary to what the (dubiously elected) Prime Minister says, GE13 was not a Chinese tsunami or had anything to do with race. It seems that the country is moving from a race struggle to a class struggle - similar to what was seen at the 2008-2010 Thai political crisis where the Yellow Shirts represented the middle classes while the Red Shrits mostly represented the lower classes. Foreign workers, blackouts and phantom votes can only contribute so much to results. BN's victory was still a result of gerrymandering which favours rural areas. Its pretty evident that Pakatan Rakyat is championing very middle class issues while BN is still seen as the protector by the rural folks. 

Whether right or wrong, it seems that most revolutions are determined by the lower classes and peasants such as in the French Revolution and Chinese Revolution. In the case of the China, it was won by communist peasants. In the next GE, the party who can gain the most support from the rural folks will most likely be the victor.