FKLI closed well (+2.78 pts) despite a bearish day. If DJIA closed well tonite, there will be gap up.
Tuesday, April 01, 2008
4:40 pm - Notice of Intraday trading rate for FCPO - Crude Palm Oil
With respect to intraday risk of trade execution for crude palm oil futures
we would revise our intraday rate (round turn) to RM80 effective 1 April 2008.
Overnite rate remained unchanged.
Kindly take notice.
- Martin & Li Ling -
we would revise our intraday rate (round turn) to RM80 effective 1 April 2008.
Overnite rate remained unchanged.
Kindly take notice.
- Martin & Li Ling -
2;53 pm : Possible reason for gap down for FKLI after lunch !
CPO drop almost -10 % and during lunch, traders and investors talk about how bad the CPO market is bad. Bad CPO prices, bad plantation counters = lead to lower KLCI.
After lunch, the fund mgrs and retail investors quickly sell their shares or futures which in turn give to lower prices.
For those traders who were long on FKLI yesterday who refused to cut losses decide to cut losses now at 1220.0/1219.0, so you get lower FKLI.
11:19 am - FCPO open and limit down -10% in 45 mins
Here is a good trade !
This is due to soy bean oil limit down last nite.. Some clients who called up made +144 pts less than 45 mins - Intraday trading. 1pt = RM 25. Do your math. Stop loss at around 75-100 pts for intraday.
If you want to trade FCPO, kindly call up before 10.30 am - around 10 am - 10.20 am. Make sure you have enough margin - est. RM15,000 per contract.
9:43 am - For intraday short position, look to short at 1242-1244.0
Take profit at 1238 and another profit objective at 1230.0
9:39 am - We might see an up bar tonite for DJIA.
Looking at DJIA, it register heavy volume and support at 12200. If DJIA can rebound up tonite, we might see our FKLI slowly climbly its way back to the bull terrority.
9:31 am - Here is a daily chart for April contract.
FKLI seems to be interested in going up. If LONG directional, trade if FKLI breaks above 1258-1260.
FKLI at this stage looks bearish and beginning to mushrooming down.
This is reacting to US Paulson's comment of restructuring US financial system. In short, this is a good news but too late.
March 31 (Bloomberg) -- Treasury Secretary Henry Paulson proposed the broadest overhaul of U.S. financial regulation since the Great Depression, saying American capitalism needs to be better prepared for ``inevitable market disruptions.''
``Our current regulatory regime is almost solely focused above ground at the tree level,'' Paulson said in remarks at the Treasury in Washington. ``The real threat to market stability is below ground, at the root level where the health of financial firms is intertwined.''
Paulson's 218-page ``Blueprint for Regulatory Reform,'' commissioned two months before credit markets seized up in August, said more rules aren't the answer to the current period of turmoil. The former chairman of Goldman Sachs Group Inc. said the system of regulating banks, securities firms and insurance companies is outmoded, and the Federal Reserve should expand its oversight of financial services beyond banks.
``We should and can have a structure that is designed for the world we live in, one that is more flexible, one that can better adapt to change, one that will allow us to more effectively deal with inevitable market disruptions, one that will better protect investors and consumers,'' Paulson said.
The Treasury secretary acknowledged in the speech that the changes will take ``many years to complete'' and most will require legislative approval.
The U.S. presidential election makes it hard for the Bush administration to push through changes in its final year, said Arthur Levitt, who was chairman of the SEC from 1993 to 2001.
Election Year
``I doubt that there will be any congressional action this year,'' Levitt, a director of Bloomberg LP, said in a Bloomberg Radio interview today. ``This is an issue that will be with us for weeks and months and probably years before substantial changes are implemented.''
The Fed, which earlier this month engineered JPMorgan Chase & Co.'s purchase of Bear Stearns Cos. and became lender of last resort to the biggest bond dealers, will oversee ``market stability,'' under proposals Paulson unveiled.
The Securities and Exchange Commission, traditionally the main regulator of Wall Street firms, will be merged with the Commodity Futures Trading Commission. Paulson said the goal is to combine ``the best parts of both.''
The Treasury recommended that the Fed share authority over banks, securities firms and insurers in monitoring corporate disclosures, writing rules and stepping in to prevent economic crisis.
``To do its job as the market stability regulator, the Fed would have to be able to evaluate the capital, liquidity and margin practices across the financial system and their potential impact on overall financial stability,'' Paulson said.
Discount-Window Access
The plan makes a distinction between the Fed's ``normal'' lender-of-last-resort discount window to help banks meet short- term funding needs and ``market stability'' lending to help stave off funding shortages and panics. In that function, loans could be extended to federally chartered insurers and financial institutions.
Paulson said it would be ``premature'' to give investment banks ongoing access to the discount window or subject them to permanent supervision by the Fed.
Under Treasury's proposal, the Fed would collect information from commercial banks, investment banks, insurance companies, hedge funds, private-equity firms and commodity-pool operators. Such a role would empower the central bank to go ``any place'' it needs to preserve financial stability, said Robert Steel, Treasury's undersecretary for domestic finance, in a Bloomberg Television interview in Washington.
Overlapping Regulators
Paulson initiated his review of the U.S. regulatory structure nine months ago following complaints from financial companies that overlapping agencies and excessive rules were hurting the nation's competitiveness.
``This is a dream come true for Wall Street,'' said Michael Greenberger, a professor at the University of Maryland in Baltimore and a former CFTC official. ``It was proposed and lobbied by Wall Street for a lighter regulatory touch.''
Former SEC Chief Accountant Lynn Turner said it would be a mistake to boost the Fed's power, arguing that it failed to protect consumers and investors during the housing boom in overseeing lenders such as Citigroup Inc. and Countrywide Financial Corp.
New York-based Citigroup, the biggest U.S. bank, has suffered $23.9 billion in writedowns and credit losses since the collapse of the subprime-mortgage market. Countrywide, the largest U.S. mortgage lender, agreed in January to sell itself to Bank of America Corp. after failing to overcome record losses and a cash shortage.
`Failed to Regulate'
The Bush administration ``has failed to regulate and now they're talking about creating a new regulatory regime that is kinder and gentler,'' Turner said. ``The Fed had oversight responsibility for Citigroup, for Countrywide, where were they? The bottom line is they were asleep at the wheel.''
Changes to the U.S. regulatory system, parts of which date back to the Civil War, have been proposed in the past, only to be thwarted in Congress and frustrated by industry opposition.
John Reich, director of the Office of Thrift Supervision, said he's skeptical that the combination of his agency with the Office of Comptroller of the Currency, as proposed by Paulson, will be easily achieved.
``Expect to see news stories and renewed questions about what the future will hold,'' Reich wrote in a letter to employees on March 28. ``The 20th anniversary of the OTS is next year. We can all expect -- despite predictions over the years to the contrary -- to be celebrating it.''
OTS Skepticsm
The OTS, a Treasury division created in 1989 after the savings-and-loan crisis, supervisors lenders including Calabasas, California-based Countrywide and Seattle-based Washington Mutual Inc., the largest U.S. savings and loan.
``The bulk of these regulatory responses made sense at the time they were created, but as we look at today's financial markets, the lack of a comprehensive design in clear,'' Paulson said. He added that ``with few exceptions, the recommendations in this blueprint should not and will not be implemented until after the present market difficulties are past.''
In his letter, Reich outlined obstacles to Paulson's plan, saying congressional debate and hearings could stretch into next year, when a new Congress and a new president ``may well have their own priorities and agendas.''
A dozen similar efforts by presidents, legislators and others over the last 60 years never ``became reality,'' Reich wrote. His office distributed the letter to reporters on the weekend.
Some members of Congress responded to Paulson's plan with skepticism, saying it's unlikely a deal could be reached until after the Bush administration leaves office.
``Realistically, probably you're not going to get much in terms of broad overhaul until we have a new administration,'' Senator Charles Schumer, a Democrat from New York who chairs the Joint Economic Committee, said in an interview on Bloomberg Television. ``To do anything very quick and very hasty would be a mistake.''
``Our current regulatory regime is almost solely focused above ground at the tree level,'' Paulson said in remarks at the Treasury in Washington. ``The real threat to market stability is below ground, at the root level where the health of financial firms is intertwined.''
Paulson's 218-page ``Blueprint for Regulatory Reform,'' commissioned two months before credit markets seized up in August, said more rules aren't the answer to the current period of turmoil. The former chairman of Goldman Sachs Group Inc. said the system of regulating banks, securities firms and insurance companies is outmoded, and the Federal Reserve should expand its oversight of financial services beyond banks.
``We should and can have a structure that is designed for the world we live in, one that is more flexible, one that can better adapt to change, one that will allow us to more effectively deal with inevitable market disruptions, one that will better protect investors and consumers,'' Paulson said.
The Treasury secretary acknowledged in the speech that the changes will take ``many years to complete'' and most will require legislative approval.
The U.S. presidential election makes it hard for the Bush administration to push through changes in its final year, said Arthur Levitt, who was chairman of the SEC from 1993 to 2001.
Election Year
``I doubt that there will be any congressional action this year,'' Levitt, a director of Bloomberg LP, said in a Bloomberg Radio interview today. ``This is an issue that will be with us for weeks and months and probably years before substantial changes are implemented.''
The Fed, which earlier this month engineered JPMorgan Chase & Co.'s purchase of Bear Stearns Cos. and became lender of last resort to the biggest bond dealers, will oversee ``market stability,'' under proposals Paulson unveiled.
The Securities and Exchange Commission, traditionally the main regulator of Wall Street firms, will be merged with the Commodity Futures Trading Commission. Paulson said the goal is to combine ``the best parts of both.''
The Treasury recommended that the Fed share authority over banks, securities firms and insurers in monitoring corporate disclosures, writing rules and stepping in to prevent economic crisis.
``To do its job as the market stability regulator, the Fed would have to be able to evaluate the capital, liquidity and margin practices across the financial system and their potential impact on overall financial stability,'' Paulson said.
Discount-Window Access
The plan makes a distinction between the Fed's ``normal'' lender-of-last-resort discount window to help banks meet short- term funding needs and ``market stability'' lending to help stave off funding shortages and panics. In that function, loans could be extended to federally chartered insurers and financial institutions.
Paulson said it would be ``premature'' to give investment banks ongoing access to the discount window or subject them to permanent supervision by the Fed.
Under Treasury's proposal, the Fed would collect information from commercial banks, investment banks, insurance companies, hedge funds, private-equity firms and commodity-pool operators. Such a role would empower the central bank to go ``any place'' it needs to preserve financial stability, said Robert Steel, Treasury's undersecretary for domestic finance, in a Bloomberg Television interview in Washington.
Overlapping Regulators
Paulson initiated his review of the U.S. regulatory structure nine months ago following complaints from financial companies that overlapping agencies and excessive rules were hurting the nation's competitiveness.
``This is a dream come true for Wall Street,'' said Michael Greenberger, a professor at the University of Maryland in Baltimore and a former CFTC official. ``It was proposed and lobbied by Wall Street for a lighter regulatory touch.''
Former SEC Chief Accountant Lynn Turner said it would be a mistake to boost the Fed's power, arguing that it failed to protect consumers and investors during the housing boom in overseeing lenders such as Citigroup Inc. and Countrywide Financial Corp.
New York-based Citigroup, the biggest U.S. bank, has suffered $23.9 billion in writedowns and credit losses since the collapse of the subprime-mortgage market. Countrywide, the largest U.S. mortgage lender, agreed in January to sell itself to Bank of America Corp. after failing to overcome record losses and a cash shortage.
`Failed to Regulate'
The Bush administration ``has failed to regulate and now they're talking about creating a new regulatory regime that is kinder and gentler,'' Turner said. ``The Fed had oversight responsibility for Citigroup, for Countrywide, where were they? The bottom line is they were asleep at the wheel.''
Changes to the U.S. regulatory system, parts of which date back to the Civil War, have been proposed in the past, only to be thwarted in Congress and frustrated by industry opposition.
John Reich, director of the Office of Thrift Supervision, said he's skeptical that the combination of his agency with the Office of Comptroller of the Currency, as proposed by Paulson, will be easily achieved.
``Expect to see news stories and renewed questions about what the future will hold,'' Reich wrote in a letter to employees on March 28. ``The 20th anniversary of the OTS is next year. We can all expect -- despite predictions over the years to the contrary -- to be celebrating it.''
OTS Skepticsm
The OTS, a Treasury division created in 1989 after the savings-and-loan crisis, supervisors lenders including Calabasas, California-based Countrywide and Seattle-based Washington Mutual Inc., the largest U.S. savings and loan.
``The bulk of these regulatory responses made sense at the time they were created, but as we look at today's financial markets, the lack of a comprehensive design in clear,'' Paulson said. He added that ``with few exceptions, the recommendations in this blueprint should not and will not be implemented until after the present market difficulties are past.''
In his letter, Reich outlined obstacles to Paulson's plan, saying congressional debate and hearings could stretch into next year, when a new Congress and a new president ``may well have their own priorities and agendas.''
A dozen similar efforts by presidents, legislators and others over the last 60 years never ``became reality,'' Reich wrote. His office distributed the letter to reporters on the weekend.
Some members of Congress responded to Paulson's plan with skepticism, saying it's unlikely a deal could be reached until after the Bush administration leaves office.
``Realistically, probably you're not going to get much in terms of broad overhaul until we have a new administration,'' Senator Charles Schumer, a Democrat from New York who chairs the Joint Economic Committee, said in an interview on Bloomberg Television. ``To do anything very quick and very hasty would be a mistake.''
Last Updated: March 31, 2008 16:58 EDT
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