DJI vs KLCI

DJI crash is opportunity for KLCI

Abominus
Publish date: Thu, 11 Dec 2014, 06:42 AM
Abominus
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Following Message

Since the end of QE few months ago, big foreign funds has been moving away from emerging market to US as they expect economy will pick up in US after QE ended. As you can see from the following chart, KLCI is heading the reverse direction from DJI since mid October. Net selling of foreign fund increasing further after oil price drop. KLCI RSI is extremely oversold. It seems both FTSE and DJI has rallied for some time and reached its peak (over bought area) and currently starts correction.

We will see whether foreign fund will continue to dump money to support DJI or come back to KLCI. With Greece problem become a cloud again to the European economy, it is not surprised, hot money will flow to emerging market again and don't forget about the ECB QE that starts in January.

So next time you see big correction in DJI, there is high chance that foreign fund will flow back to KLCI.

 

 

https://uk.finance.yahoo.com/q/bc?s=%5EDJI&t=3m&l=on&z=l&q=l&c=%5EKLSE

 

 

Discussions
2 people like this. Showing 17 of 17 comments

optimuss

most brainless

2014-12-11 07:43

calvintaneng

EXCELLENT CHART!

AS CAN BE SEEN CLEARLY - THE VAST GAP BETWEEN A MORE EXPENSIVE DOW & A CHEAPER KLSE WIDEN MORE AND MORE.

MONEY WILL FLOW BACK TO KLSE FOR VALUE JUST AS WATER FLOWS TO THE LOWEST LEVEL.

THIS INVESTMENT LAW ALSO FOLLOW NATURAL LAW.

CALVIN'S CALL

SELL USA!

BUY MALAYSIA!

2014-12-11 07:44

MercuryRX

Klci should be ok, no indication for crash or recession... Why panic?

2014-12-11 08:09

optimuss

Saudi Oil Minister Ali al-Naimi shrugged off suggestions that the world's biggest crude exporter might cut production to halt tumbling prices, saying the Kingdom's output had remained steady through last month.

Asked whether he thought it would be necessary to reduce oil production prior to OPEC's next scheduled meeting in June, he responded: "Why should we cut production? Why?"

2014-12-11 08:11

kk123

Yes no need to panic as msia shld be resilient
Most blue chips controlled by EPF + khazanah

2014-12-11 08:13

lotusf1

Nomura asia managing securities ,Michael Kurst ,star business ,10/12/014,was quoted as saying that malaysia equities heavy selling was overeraction n he expects some burst of buyings in the short terms as equiteis valued became oversold.
True ,Klci overturned the table and rallied by 27 pts ystrday..

2014-12-11 08:16

kk123

When i say "shld be" resilient - I mean -The resilientcy depends on whether which direction the gov via epf want the index to go
Also u will receive ur "BRIM" handout "soon"

2014-12-11 08:18

Justin Ngo

My question is why must choose malaysia? There r other countries which economy are far better than us.

2014-12-11 08:43

belkg

Too much drop in dj also not good for the whole world. In 2008. Dj drops to 12,000 point

2014-12-11 08:44

calvintaneng

Why Malaysia?,

If you go to Supermarkets like AEON you will find no car parking space if there is a Special Sale for Members. Some items with genuine Discounts up to 70% are Going Very Fast!

So Is Malaysia on Fire Sale?

Just watch.

2014-12-11 08:46

saifol

klci die today..no hope..

2014-12-11 09:06

jasonor

fast2 buy... big discount today.. haha

2014-12-11 09:07

ravichong

Calvin tak boleh pakai punya.

2014-12-11 09:12

Zai Zai

i agree with ravichong =)

2014-12-11 09:15

calvintaneng

Never mind if nobody agree with Calvin.

I bought PM Corp at 7.5 cents. Nobody agree to buy then

Also bought Perak Corp at only 60 cents. Only one person agree then. Who was it?

Calvin himself lah. Calvin agree with himself is OK Lah.

2014-12-11 09:28

ozzie75

Good morning, Calvin.

I do agree that weak markets do present buying opportunities into fundamentally strong counters (on a no-name basis). :)

Have a good day ahead.

2014-12-11 09:30

Nancy Tang

Usual daily dose ... ka ki kong , ka ki song !!!

2014-12-11 10:10

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