On the back of positive US jobs data from the Labor Department, the Dow closed the week with a 113.8 pts gain to close at 9,370.07 on Friday. It is now heading towards the critical 9,794 resistance which is the high of October 2008. With only 400+ points away, can the Dow break above this critical resistance? If the Dow can break above this key resistance, it would improve its odds of breaking above the psychological 10,000 level in the near future. For now, we maintain our status quo optimism of theDow Jones and the FBM-KLCI.
Better than expected US Jobs data on Friday 
Supporting the Dow Bulls’ thrust forward is encouraging employment data from the US Labor Department which showed that the unemployment rate dipped 0.1% to 9.4% in July from June’s 9.5%. Job losses also narrowed to 247k from the previous month’s 443k.
Supporting the Dow Bulls’ thrust forward is encouraging employment data from the US Labor Department which showed that the unemployment rate dipped 0.1% to 9.4% in July from June’s 9.5%. Job losses also narrowed to 247k from the previous month’s 443k.
For last night, McDonald's global sales showed a gain of 4.3% in July, capping corrective losses for the Bulls which closed with a loss of only a marginal 32 points last night. The Bulls’ momentum is still intact.
Dow Correlation with FBM-KLCI and Hang Seng
The Dow’s correlation with markets stands at a strong 92% with our FBM-KLCI and a strong 95% with the Hong Kong’s Hang Seng Index. As such, the Dow’s strong drive towards the 10,000 level will buoy our local FBM-KLCI upwards as well.
The Dow’s correlation with markets stands at a strong 92% with our FBM-KLCI and a strong 95% with the Hong Kong’s Hang Seng Index. As such, the Dow’s strong drive towards the 10,000 level will buoy our local FBM-KLCI upwards as well.
Bullish view on the KLCI and reaffirm trading buy calls on AZRB, FAJAR, DNP, TM, TA and AIRASIA
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