New dollar collapse this weekend?

While most of America is preparing for the long holiday weekend, most of the world is dumping U.S. dollars — in torrents.

Today, the U.S. dollar is sinking fast against the Japanese yen, the Singapore dollar, the Korean won, the Indian rupee and virtually every minor and major currency on Earth.

It has just breached the $1.50 level against the euro. It has just plunged to parity with the Swiss franc and could soon do the same with the Canadian dollar.

Gold, meanwhile, has now eclipsed $1,180 per ounce for the first time in history ... and is making a beeline for the $1,200 level.

What’s most alarming is that the trading pattern we’re observing in the dollar today is uncannily similar to the pattern we saw exactly three years ago:

As you can see from the above chart, during the Thanksgiving weekend of 2006, the dollar collapsed on the day before the holiday ... fell a bit further in global holiday trading ... and then collapsed again on the Friday after the holiday. More importantly, that also marked a new stage in a far longer term dollar bear market.

If this pattern repeats itself, its implications are far-reaching:

First, it means that the accelerated dollar collapse we warned you about in our “11 Startling Forecasts for 2010” video may not wait until 2010. It could be starting right now — on THIS supposedly “quiet” weekend!

Second, it implies that the specific investment recommendations we give you in the video can’t wait either; many could be immediately actionable.

Most important, it means that all heck could break loose after the Thanksgiving break when traders return to their desks and see the dollar carnage that has taken place in their absence.

If you have not yet had a chance to watch the 1-hour video in full, or would like to share it with friends and family, here’s the link. It goes offline next week. So this could be your last quiet time to review it.

Important: The specific investment recommendations are near the end. So I recommend you watch it from start to finish.

Good luck and God bless!

Martin

Maxis eligible for fast entry into FBM KLCI

Bursa Malaysia announced yesterday that Maxis Bhd will be eligible for fast entry into the FTSE Bursa Malaysia Kuala Lumpur Composite Index in accordance with the FTSE Bursa Malaysia Index ground rules.

This is because Maxis' full market capitalisation is expected to exceed 2 per cent of the full capitalisation of the FTSE Bursa Malaysia Emas Index, it said in a statement.

It said that several changes in the FTSE Bursa Malaysia Index series will take effect on November 20, subject to the listing of Maxis on November 19.

On the changes, Bursa Malaysia said Maxis will be added to the FTSE Bursa Malaysia KLCI with a shares in issue total of 7.5 billion and an investability weighting of 30 per cent.

Malaysian Airline System Bhd (MAS) will be removed from the index, it said.

MAS will be added to the FTSE Bursa Malaysia Mid 70 Index with a shares-in-issue total of 1.671 billion and an investability weighting of 30 per cent.

Tradewinds (M) Bhd will also be removed from the index, Bursa Malaysia said.

Tradewinds will be added to the FTSE Bursa Malaysia Small Cap Index with shares-in-issue total of 296.470 million and investability weighting of 30 per cent.

The changes will be simultaneously reflected in the FTSE Bursa Malaysia Top 100 Index and the FTSE Bursa Malaysia EMAS Index.

Bursa Malaysia said Maxis will also be eligible for inclusion in the FTSE Bursa Malaysia Emas Shariah Index and the FTSE Bursa Malaysia Hijrah Shariah Index at the next semi-annual review in December, subject to it passing the Shariah Advisory Council and/or the Yasaar screening methodology. - Bernama

Prestar pre-tax profit rose 26pc in Q3

KUALA LUMPUR, Nov 13 — Prestar Resources Bhd’s pre-tax profit in the third quarter ended Sept 30, 2009 rose 26.24 per cent to RM16.914 million from RM13.398 million in the corresponding period of last year.

The improvement was mainly due to some recovery in steel prices, local demand as well as the continuous improvement in internal operational processes, it said in an announcement on Bursa Malaysia.

Its revenue fell to RM127.126 million from RM128.237 million.

Nevertheless, the nine months results was still significantly below last year’s performance, due to unprecedented high steel prices recorded in the same period last year.

For the nine months period, its pre-tax profit fell to RM11.426 million from RM52.694 million in the corresponding period last year as revenue dropped to RM326.752 million from RM438.975 million.

The steel industry experienced some recovery during third quarter, but uncertainties such as a softening of prices and inconsistent demand remained, it cautioned.

In view of positive factors arising, such as the full effect of the government’s spending under its stimulus package as well as gradual recovery of global economies, Prestar said its Board of Directors is of the opinion that the performance of the Group will remain satisfactory in the last quarter of the financial year. — Bernama

Malaysian Stock Index May Cross 1,300 Soon

By Chan Tien Hin
Nov. 11 (Bloomberg) -- Malaysia’s benchmark stock index is
set to surpass “tough resistance” at 1,300, an 18-month high,
extending this year’s 45 percent advance, OSK Research Sdn. said.
The 30-member FTSE Bursa Malaysia KLCI Index “has a good
chance of testing the 1,300 point mark soon,” OSK analyst Shin
Kao Jack said in a report today. Having “violated the recent
peak of 1,270 points,” that level now offers initial support,
followed by 1,242, he said.
“Market activities have been relatively active over the
last seven trading days with more than 1 billion shares changing
hands” daily, Shin said. Trading volume on Malaysia’s stock
market averaged 843 million shares over the past three months,
according to data compiled by Bloomberg.
The KLCI Index has risen 45 percent this year, helped by
Prime Minister Najib Razak’s 67 billion ringgit ($20 billion) of
stimulus measures aimed at reviving economic growth.
The gauge dropped 0.2 percent to 1,271.48 as of 11:45 a.m.
local time, snapping a six-day, 2.6 percent rally. It last
settled above 1,300 on May 16, 2008.
In technical analysis, investors and analysts study charts
of trading patterns and prices to forecast changes in a security,
commodity, currency or index. Support is a level where buy
orders may be clustered and resistance is where there may be
sell orders. A break below support or above resistance indicates
a security may move to the next level.