USD/MYR Move Opposite With KLSE Index
This few day I had do some analysis about the KLCI bull run, try to found when major correction will take place and I found the chart above. Base on it, KLCI move opposite again USD currency!
When USD value drop KLCI is moving up so I think foreign fund do play around in Malaysia share market as a platform to put money when USD is low. Now RSI chat for USD/MYR currency is below 50 for about 2 month and I think KLCI will drop frist before USD/MYR value move up.
KLCI had year to date up around 20% and USD/MYR value is drop back to level RM3.50 like early of the year 2009, I think US economic may improve by 2H2009 so USD value may up by end of June so KLCI may face major correction by mid of this month.
4 comments:
There's a new political development taking shape. BN is courting PAS coz if PAS join BN, SURE PKR will not be able to form government. Evendo next general election is still few years ahead, BN seems not resting itself to defeat. This must be a desperate attempt by BN feudaling leaders to hang on to power(also source of big income for them for generations). As for KLSE keep heading north, i say, i will stay aside. Somehow, i am confident that i can buy stocks at much lower prices compare to current prices. I am also confident that i can buyback KN at 50 cents in coming months. So i better sit tight, look for money so that i can bomb the market for 100% returns. Hahahahahaha.....
it seems that you are so confident. but there are many factors which determine the KLSE isn't it? Anyway, i will also stay aside since it is too hot now. thanks for the post and comment
Somewhat the recovery in US will only be visible next year. Unemployment will exceed 10%. The fact is things are getting less worse(we have to be extra careful to understand thing message) and not things are getting better. Malaysia may see several quarter in negative GDP, thus possibility of listed companies going PN4. Remember only few months back(October 2008) things are so gloomy that we i said market will jump, no one will believe. And now, looks like everybody jumping in. BEWARE, the trap set by big players!! Almost all analyst are recommending stocks now. THE CON GAME ALREADY BEGIN!!
For me, KLSE go up or down is control by foreign fund and in many situation local fund also follow the direction of foreign investment fund.
For now the KLCI is over due for correction, it is not because share need to correction but is because USD about to bound up a bit so some foreign fund will flow out from Asia back to US.
Thanks you all for the comment.
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