Big Surprise Rise in Early 2016 for Malaysian Market

Hi all, meet u all again..

Since 21st January, I've been blogging to educate and motivate investors or traders to look out of the box. Now after few days, we seen the result which give us clear direction where Malaysia are heading.

I've always have contradict view with many economy analyze

My simple indicator is:

"BULL OR BEAR MARKET WONT TELL US IN PUBLIC WHEN IT HAVE TO BEGIN OR END BUT IT GIVE U A SIGN TO THINK"

I shared with you guys in previous post about my experience being retrench by one of great oil and gas company in my post "2016: When Most People Bearish, We Bullish", it taught me how to look market in bigger picture. 

So as for the evidence let me show you the big surprise:

1. RINGGIT STRENGTHENING

MYR AGAINST USD CHART

Its clear distribution  pattern of MYR. For the time being I see two strong support which is at RM4.15 and RM4.00 need to be broken. This came into surprise when Moody Rating eventually downgrade Malaysian economy in 2016.

Link

http://www.bloomberg.com/news/articles/2016-01-11/moody-s-cuts-malaysia-credit-rating-outlook-on-weaker-finances

2. CRUDE OIL REBOUND FROM LOW 26USD TO 34USD

CRUDE OIL WTI DAILY CHART

Temporary in shorterm trend, I see oil hit until 26USD and bounce back today high 34USD. These due to technical re bounce and the rumor Russian want to discuss with OPEC to cut the oil production. Let see, if oil can maintain at current price, but i believe in shorterm trend the oil may hit up to 37USD.

I'm forecasting oil may sideway temporary for around 2-3 years at below price of 65USD

At current price, I didnt believe the oil may hit 20usd and below since the demand for oil still strong but at the same time it will kill small player in oil and gas

3. TPPA APPROVED IN PARLIMENT on 27 Jan 2016

This is one of the reason why foreign positive inflow money to our market. They look into opportunity to extend their investment in Malaysia.

Sector In Focus:

1. Construction

2. Plantation

3. Technology

4. Services

5. Export

6. Medicine 

In the next 10years, Malaysian Economy Demography might be changed and the source of income may less dependency on oil revenue

Some of us might not understand when the exact date of implementation of TPPA.

By Febuary 2016, Malaysia will sign the agreement  with other members. Technically, TPPA will ready to be implement after 2 years. So what u aspect during these 2 years buffer time?

I'm believe , in shorterm construction sector will be more attractive as they need to provide the facilities for foreign investor, e.g MRT, Highspeed Train highway and Building.

I believe when oil price already stabilize, more project will be awarded by the government toward their glc.

4. SOROS SHORTING YUAN

I'm not surprise if Soros ones again return to short China Market and post it in public. This is not the first time he did shorting. In 1998, during asian financial crisis, Soros one of the main player shorting asian market.

If you ask me about the return of Soros, I would say, its time for bull market to return.

What happen in 1998, when he did shorting the asian currency, after the event, the bull market take place.

While he shorting China Yuan in this year,  Malaysian economy had less impact and can sustain recently at certain level of point for KLCI

http://www.straitstimes.com/business/economy/chinese-media-slam-george-soros-for-declaring-war-on-yuan

5. MANY PEOPLE ARE PREPARE FOR BEAR MARKET IN 2016

If you follow my previous post, I share on  Soros statement about market crash. He eventually every year spoke about the same thing and same script to create market panic.

For many years, I see the trend are same. When we are panic, we lost our mind. We lost track our technical and fundamental understanding.

Just make it simple, when everyone think the same thing, who gonna think another side of thinking?.

The bear or bull market comes without notice. It will give u a big shoot.

This year we seen, many oil and gas employee had been retrenched due to current low oil price.

What I seen here was the rock bottom of decline in economy. In 1998, I asked my father, he did face the same thing but even worsen. But, after the bad economy condition, the government will interfere to ensure the market stabilize. This what I mean, think another way around being optimistic when other people are panic.

6. 29th JAN'16, SECOND LINEAR STOCK WILL REBOUND AND MAKE NEW HIGH

After gone trough huge selling pressure over the fortnight , I believe it the right time for the second linear stock in KLCI to rebound. 

Ringgit already strengthen up to RM4.16 which cause a good sign for most of the stock to move upward.

Inline with Chinese New Year Rally, I believe the rally in stock market are still validate.

This time it will move higher than previous month closing.

So its time to harvest stock...

Stay Tune......