11:14 am - Market Report by Bill Wermine

Dear Traders,


What happens to the AUD effects what happens in Malaysia, as Malaysia is weighted heavily in the commodity sector

Attached is the AUD chart showing a strong stage 2 advance with a near term target of 8600 vs the USD and support at 7500.
The RM/ AUD should soon breech the 3.00 resistance.

Most of the talking heads on CNBC and Bloomberg are bearish the AUD even though the technical chart has a bullish message.
Remember the media is a tool of the smart money who use news to manipulate the sheep. Why should they want the public to push up the price against their own buying ? This is bad for business

In contrast to the bearish comments about the AUD , Kevin Rudd, PM of Australia said Australia is doing better than most economies during the worst global recession in 75 years.

The IMF and OECD released reports yesterday upgrading its Australia growth forecast for 2009 to 0.5 % from a decline of 1.4 %

Rudd said that the governments early and decisive action had helped cushion the Australian economy from the worst of the global recession.

In and of itself I would ignore comments from politicians but in this case the technical chart of the AUD confirms his comments
and shows demand is stronger than supply. It reflects demand for the products Australia sells including gold, iron ore and commodities. Remember charts are the truth of the market. Everything else is an opinion or a lie.

In contrast growth in the US/ Europe/ UK and Japan according to the IMF will be negative and this should cause capital outflows into Asian currencies.

The KLSE should benefit. In fact there has been an uptick in foreign funds flowing into Malaysia to take advantage of beaten down companies. Buying quality dividend shares on dips is a reasonable strategy according to Pong Teng Siew, head of research for Jupiter and I whoeheartedly agree.

Have a profitable week ahead ,

Bill