The Eurozone crisis has helped price of crude oil to rise and US dollar to strengthen. Together with expected lower output in November and higher exports, these factors caused price of crude palm oil to rally in the past one month

Technically, the FBMKLCI is still in a short term up trend (based on an increasing 30-day moving average), but the uptrend is correction in a major down trend (based on a declining 90-day moving average).

The market was quieter as compared to last week as investors lack direction but focus was on penny stocks in the local market. Markets in the west ended in a sideway note last week but Asian markets ended up in negative territory. The FBMKLCI settled 3.24 points lower in a week to 1,477.22 points after trading in a relatively tight trading range between 1,466.25 and 1,490.74 points. Average daily trading volume was 2.6 billion shares with an average value of RM1.6 billion. This shows that most of the trading volume is on lower-prices stocks.

The first feature to note is that the Straits Times Index does not show any end of trend pattern such as a head and shoulders or a rounding top. This doesn?t mean the trend will not end, but it makes it more difficult to set downside target objectives.

The Nikkei fallen below the support level at 9000 and this shows limited strength in the economy. The market has not developed a clear directional bias. The Nikkei continues to move in a broad sideways trading band. The lower support level is near 9000 and this is under strong testing

The last minute agreement of lifting the debt ceiling in the United States has two important results. First it has shaken confidence in the US and the role it has played in global financial stability. Second it confirms the nation is addicted to debt. The debt ceiling can be implemented only by printing more dollars. It leads to an inevitable debasement of the currency and ongoing dollar weakness.