Oil has slide 7% since last week but DJIA performance continue moving north on positive manufacturing data and better employment numbers. I am expecting a correction soon on DJIA since first quarter has completed with all the feel good news.
Sequence of event if DJIA corrects this few days with oil sliding past 10%.....MYR will weaken with USD strengthening. The signs of USD strengthening did not show in past week but should now be seen if oil continues to drop
We should all note that though I write MYR weakening or strengthening, it is actually reference to USD weakening or strengthening. This is because MYR never led the forex and only USD is the ref.
One more chance for Malaysia to hedge b4 price of crude oil moves up with the latest Kuwait announcement to limit output ahead of Doha meet. If they limit and price of oil goes up, Iran will benefit as they don't agree to limit the output. This is a catch22 for all those OPEC and non OPEC that is limiting the supply going into the meet. For layman, we should hedge by buying foreign currency in phases as we are not in the know of the outcome. Oil price down ringgit will weaken. If it stays above usd35 many believe/hope it will sustain the northbound trend but below 35, that faith will fall following the trend below 35.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
charlenechew
123 posts
Posted by charlenechew > 2016-04-04 14:02 | Report Abuse
Agree!!!! I know some Sarawak counters. Anymore???
Naim
Hock Seng Lee
Dayang
Sarawak Cable
Cahaya Mata Sarawak
WTK
Jtiasa