The focus will be on Trump's pro-growth and inflationary economic policies. Federal Reserve will be forced to raise the funds rate at a faster pace and that will push the dollar up. And that in turn may lead to huge capital outflow from Asia Pacific.
By Friday most Asian currencies were lower against the US$. Japanese Yen dropped 5.3% from Wednesday's 101.29 Yen to a dollar to Friday's 106.68 Yen to a dollar. Korean Won was 1.6% lower, Indonesian Rupiah plunged more than 5%, Australian $ was down 2% and Malaysian Ringgit also lost about 2%.
Crude Oil WTI (US$ 43.13)
Crude oil is currently having its wave (iv) rebound. Wave b of (iv) is expected to be completed before end of 2016.
Dow (18,847)
Dow recorded another new historical high on Friday. If the magnitude of wave (v) is the same as that of wave (iii), Dow may end its wave (v) around 19,340.
FBMKLCI (1,634)
If KLCI has already completed its major wave 4 and is currently forming the wave (ii) of its major wave 5, its wave (ii) is about to end around 1,630 level
However if KLCI continues to move lower next week due to week Ringgit and foreign capital outflow, then it is more likely that KLCI has yet to complete its major wave 4 and it may be heading for 1,500 level to completed the wave e of 4.
Insas Bhd (Rm 0.68)
My reading for Insas is as shown. It has completed its mega wave (1)-(2)-(3)-(4). It also has completed the major wave 1-2 of its mega wave (5). Currently it is forming the wave (ii) of its major wave 3.
I hope I am right.
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