Crude oil is on its wave (ii) of C rebound. I expect the price to drop sharply in October to start its wave (iii).
Dow (22,268)
Dow continues with its mini wave 7 formation.
USD/MYR (Rm4.19 to 1US$)
In my previous wave count for USD/MYR, I am assuming USD/MYR is forming the wave c of its major wave 2 of B. Under this scenario, Ringgit is expected to weaken again to 4.6 or 4.7 level next year to complete the wave B rebound before strengthening.
But there is a possibility that Ringgit might have seen its worst. Its last low at 4.49 in January 2017 could be the wave (vii) of B.
It was during the time when Dr. Mahathir was PM that Ringgit was at its strongest at 2.45 to 1USD.
During A. Badawi time from 2003 to 2009, the ringgit was unpegged from its Rm3.8 to 1USD. The ringgit improved to 3.13 by April 2008 but it dropped to a low of 3.7 in January 2009. During Najib's 1st term as the PM, the ringgit was pretty stable and strong. It was able to stay around 3.1 from April 2011 to May 2013 (26 months). After that whether it was due to 1MDB or other reasons, ringgit kept on dropping until its low of 4.48 by September 2015.
If wave B has been completed, theoretically wave C should bring the ringgit back to at least 2.45 to 1USD as what it was during the time when Dr. Mahathir was the PM. Please don't interpret what I have said to mean the opposition coalition HARAPAN is going to knock out BN.
FBMKLCI (1,786)
A possible wave count for KLCI - wave (ii) of C has just been completed. I am still thinking of the 15% wave C.
From the 20-year chart, one can see, this wave C of (6) won't be over so soon. Hopefully the duration can be shortened by a stronger ringgit.
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