Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Monday, October 24, 2011

MYR weakens against SGD, AUD, NZD

Here's a 6 months time frame chart showing SGD gradually appreciating against MYR, from a low of 2.40 to approximately 2.50
Ringgit also weakens against AUD and NZD: AUD now buys 3.26 MYR and NZD buys 2.52 MYR.

Tuesday, October 18, 2011

Buy this metal: more precious than gold

This is absurd: platinum is now trading at USD 1533 spot price and it is now lower/ cheaper than gold at USD 1656. Ratio of platinum/gold is approximately 0.93 although platinum is much rare a commodity than gold.. If I remember correctly, it should be trading at ratio of 1.5 to 1.8 range...
I've always wanted to get my hand on a physical platinum 1 oz coin when it was trading at USD 800 - 1000 range two/three years ago but unfortunately there weren't any legitimate seller in the Malaysian metal market. So if you're in Australia, USA or Europe, this is simply a must-grab physical item..!

Monday, October 17, 2011

Trading Options. AUD/MYR

AUD/MYR chart on a time frame of 6 months, with the AUD trading range within 3.02 to 3.25

Aussie today climbed to a intraday high of 3.22 in the morning but has since slid to 3.17 against the Ringgit in the evening as news of German Finance Minister dampened hopes that the impending summit would produce a breakthrough in Euro debt crisis. AUD/USD dropped from 1.04 to 1.02

Wednesday, October 12, 2011

AUD continues to soar

Aussie continues its winning streak to USD 1.015 on Wednesday as the Euro bailout fund looks more likely. Meanwhile release of the minutes of Federal Open Market Committee meeting held on 2oth Sept showed officials were still gloomy about US economy, which were negative on US dollar.
AUD soars to 3.18 Ringgit (1 month chart) and GBP/MYR at 4.93
Indonesia cuts its cash rate while Singapore Monetary Authority had said it will slow the appreciation of its dollar. Will Malaysia cuts its cash rate and loosen its monetary policy too..?

CRB Index (12 mths chart) is recovering to 311 but still below 50Day Moving Average.

Friday, October 7, 2011

AUD recovers strongly

AUD recovers strongly after ECB announced that it would continue to assists lenders to prevent a credit crunch, easing the pressure in the Euro debt zone. Further recovery of AUD will depend on US job figures, due tonight Sydney time and also the Australian labour force set of data due coming Thursday...
AUD/MYR seen trading at 3.10 level
GBP/MYR stayed at 4.91 level

Tuesday, October 4, 2011

AUD continues to fall

AUD was on a downward path all Tuesday and fell to its lowest due to concerns about global growth. It plunges to 94.6 US cents after Central bank RBA said it decided to keep the cash rate unchanged at 4.75 % but was open to lowering the cash rate if inflation eases.

AUD/MYR plunges to low of 3.0229
GBP/MYR dip to a low of 4.91 from 4.99 (within five hours).

Monday, October 3, 2011

Trading Options. Aud/Myr. Xau/Aud. Gbp/Myr

AUD/MYR hovering at 3.09 from a recent rebound of 3.06
AUD may revisit recent low of 3.06 if selling of commodities continue within the week so it's best to stay at the sideline or buy the option at strike of 3.00 if possible...
If you're already holding AUD, then consider doing an XAU/AUD option swap at strike/exercise price of 1600 or 1500 level as XAU/AUD is currently trading at 1700.

Meanwhile GBP/MYR has soared to high of 5.00 from below 4.80 within four weeks..

Sunday, October 2, 2011

Fair value changes with perception volatility

Fair value and PER of share prices of companies changes very quickly in differing market conditions so I would not utilise it as the only tool for buying a company stock. Nevertheless it's still pretty good indicator of whether the company shares you hold in your portfolio has become overpriced wrt. its earnings, market outlook/ projections and regional peers..

Meanwhile a look at some of the companies mentioned by friends....
QL Reso ( nta 92, Q/Q 3.9/ 3.3 sen ). It's overpriced, trading at RM 2.60 and would be one of the stocks I'll go short on. Fair value RM 1.60 to 1.80
Supermax (nta 212, Q/Q 11/10/ 7/ 6 sen). Trading close to PE 11 at RM 2.80, rebounding from RM 2.30 range last week. Worth a nibble below RM 2, screaming buy at RM 1.20 w/ PE 5
HS Plant (nta 230, QQ 5/ 7/ 7/ 9 sen ) Trading at RM 2.40, it recovers everytime it plunges to RM 2 level... This is one company worth looking at when share price plunges below RM 2. Whack hard at RM 1.50 range...


It sure doesn't make much sense to look at fundamentals of a company for great buy at the moment cos' when market tanks every companies share price gives way.. We're staring at the scenario where market hits the panic button at every negative news and investors/ traders find every excuse to dump shares to preserve their capital... What to do in times like this...? Google the term CAPITULATION and do your research ; it's gonna be worth the time...