Trend Analysis KLCI vs oil price

FTSE Bursa Malaysia KLCI Index (FTSEMYX:FBMKLCI)

Updated

FTSEMYX:FBMKLCI FTSE Bursa Malaysia KLCI Index

Beyond Technical Analysis Trend Analysis

YTD, the trend of Malaysia KLCI Index and oil price moved like a parallel twin brothers. We know that oil price is negatively correlated to US currency so it is against most common belief that a strong US currency is good for our stock market as it will improve our exports. This phenomenon is really a mysterious puzzle :(

Comment:

If the above correlation can hold water, it is safe to say that current bullish sentiment in Bursa Malaysia will end once the US currency started to appreciate against ringgit and all other commodities. US currency will appreciate when US started to raise interest rate and reverse the hot money flow back to US from emerging markets. When Biden officially assume the 46th presidency in 20 January next year this will be an important day for stock market worldwide as there will be a new world order, new foreign policy similar to last Clinton's era instead of Obama's era. So watch out for the movement in oil price as well as US dollars for stock market direction. The bitcoin started to incorporate into our real economy so it is one important factor to watch as well.

Merry Christmas & Happy New Year 2021.

Comment:

Clintonomic

Establish fiscal discipline and eliminate the budget deficit.

Maintain low interest rates and encourage private-sector investment.

Eliminate protectionist tariffs
Invest in human capital through education and research.

Comment:

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