11:32 - Market Outlook by Bill Wermine

Dear Traders.

A week ago, the rush to find US Dollars to repay hugh USD debt was in full force, along with huge flows into US T Bills and notes. Now the river has entered a lake of liquidity dug by the world's central banks, with the US Fed leading the charge with help from Brazil, Mexico, S Korea and Singapore. The result has been a 10 % gain in many world markets including a 6 % gain in the KLSE.

There is a good chance we are looking at a sentiment extreme and prices for the battered victims of the financial markets.

America has awesome twin deficits that make the USD vulnerable and positive for commodities including CPO.

I ran TAVA MetaStock filter today and found several beaten down KLSE blue chip shares with good volume coming in. Could this be the turn ?

The AUD is also turning and should be positive for commodities and our Man Fund AUD investments.

Daily AUD Futures chart showing support coming in and a 776 pip rally.

WE are holding a 10 point CPE course approved by the Securities Commission on 10 November at the Phillip Training room. We start at 10 AM. The subject will be Price and Volume trading. I and Martin intend to make some trades in the CPO and CI Futures markets to demonstrate the power of volume spread analysis as well as some share trades. Cost of the one day course is RM 198. Seats are very limited. FOC to main course grads.

This is a practical course about making money with a very limited amount of theory. Please call Wai Kiat of Phillip Data service 03 398 9522 or 012 398 9522 if you wish to register as he is the organizer.

Risk is low now because of the fear, panic,doom and gloom sentiments of most players.

Have a good week
Bill