If FKLI breaks lower, we are looking to short the market.
Wednesday, December 12, 2007
9:27 am - US markets did not like FOMC rate cut of 25 basis points and selldown at late trading hours.
The KLCI has some support due to crude palm oil but react to bad news of DJIA -294 pts fall.
The Lowdown
Wall Street did not get everything it wanted for the holidays when Federal Reserve lowered the federal funds rate by 25 basis points to 4.25%.
Stocks took a dive on Tuesday afternoon as traders scoffed at language in the Fed's policy statement, which offered no assurance of another cut. The Dow Jones Industrial Average fell 294 points to 13433, its biggest drop since Nov. 1. The Nasdaq lost 67 at 2652, and the S&P 500 gave back 38 to 1478.
The rate cut had been widely expected, as recent speeches from Fed governors and Chairman Ben Bernanke had portrayed the economy as slowing. However, the language of the policy statement suggested the Fed's next move is unclear. "Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation," the Fed wrote.
There had been some mystery surrounding this Fed meeting. Economists appeared certain that the Fed would make its third consecutive cut in as many meetings. However, some economists had gone so far as to predict a cut of 50 basis points.
The Lowdown
Wall Street did not get everything it wanted for the holidays when Federal Reserve lowered the federal funds rate by 25 basis points to 4.25%.
Stocks took a dive on Tuesday afternoon as traders scoffed at language in the Fed's policy statement, which offered no assurance of another cut. The Dow Jones Industrial Average fell 294 points to 13433, its biggest drop since Nov. 1. The Nasdaq lost 67 at 2652, and the S&P 500 gave back 38 to 1478.
The rate cut had been widely expected, as recent speeches from Fed governors and Chairman Ben Bernanke had portrayed the economy as slowing. However, the language of the policy statement suggested the Fed's next move is unclear. "Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation," the Fed wrote.
There had been some mystery surrounding this Fed meeting. Economists appeared certain that the Fed would make its third consecutive cut in as many meetings. However, some economists had gone so far as to predict a cut of 50 basis points.
Tuesday, December 11, 2007
9:37 am - DJIA closed higher +101.45. FKLI had gap up this morning.
Our last position was short FKLI @ 1428.5 and we were out yesterday before this morning FKLI gap up. Looking to go long.
Remember, FOMC interest rate cut announcement tonite. Watch your CNBC.
Remember, FOMC interest rate cut announcement tonite. Watch your CNBC.
Monday, December 10, 2007
8:21 pm - Will DJIA closed higher tonite ?
Stocks head to higher open despite UBS
NEW YORK (AP) - Wall Street headed for a slightly higher open Monday despite further evidence that the subprime mortgage crisis continues to spread. Swiss bank UBS said it will write down some $10 billion of subprime mortgage holdings, and also announced plans for an $11.5 billion capital injection from the government of Singapore and an unidentified Middle Eastern investor. Shares of the bank rallied in Europe on relief this might be the worst of UBS' exposure, and that the bank was able to secure more capital. The announcement from UBS comes just before the top U.S. investment banks are slated to report earnings. Lehman Brothers Holdings Inc. will report results on Wednesday, while Goldman Sachs Group Inc., Morgan Stanley and Bear Stearns Cos. are scheduled for next week. Investors were also upbeat ahead of the Federal Reserve's rate-setting meeting on Tuesday. Policymakers are broadly tipped to lower rates, though economists are still split over whether there will be a quarter point cut or a half point cut. Wall Street will also be monitoring data released Monday on pending home sales in October. Dow Jones industrial average futures rose 31, or 0.24 percent, to 13,681, while Standard & Poor's 500 futures rose 3.20, or 0.21 percent, to 1,510.50. Nasdaq 100 index futures added 5.00, or 0.23 percent, to 2,137.00. Wall Street has posted robust gains recently as investors grew more confident in the Fed's openness to loosening its policy again. The Dow has risen more than 640 points over the last two weeks, a rally that has brought the blue-chip index to less than 4 percent below the record close it reached Oct. 9. Last week, the Dow ended 1.90 percent higher, the S&P 500 index finished 1.59 percent, and the Nasdaq ended up 1.70 percent. In corporate news, Blackstone Group Inc. might be planning a bid to acquire Rio Tinto Ltd., according to Britain's Daily Telegraph. Blackstone would lead a consortium that would include China's sovereign wealth fund, according to the report. Japanese drug maker Eisai Co. said Monday it will buy U.S. biopharmaceutical company MGI Pharma Inc. for $3.9 billion in a move aimed at boosting its cancer drug business and sustaining sales growth. Oil prices slipped Monday, extending a decline that began Friday after a November U.S. jobs report turned out to be less robust than expected. Light, sweet crude fell 16 cents to $88.12 a barrel in electronic trading on the New York Mercantile Exchange. Overseas, Japan's Nikkei stock average closed down 0.20 percent, while Hong Kong's Hang Seng index fell 1.18 percent. Britain's FTSE 100 added 0.07 percent, Germany's DAX index rose 0.29 percent, and France's CAC-40 increased 0.29 percent.
NEW YORK (AP) - Wall Street headed for a slightly higher open Monday despite further evidence that the subprime mortgage crisis continues to spread. Swiss bank UBS said it will write down some $10 billion of subprime mortgage holdings, and also announced plans for an $11.5 billion capital injection from the government of Singapore and an unidentified Middle Eastern investor. Shares of the bank rallied in Europe on relief this might be the worst of UBS' exposure, and that the bank was able to secure more capital. The announcement from UBS comes just before the top U.S. investment banks are slated to report earnings. Lehman Brothers Holdings Inc. will report results on Wednesday, while Goldman Sachs Group Inc., Morgan Stanley and Bear Stearns Cos. are scheduled for next week. Investors were also upbeat ahead of the Federal Reserve's rate-setting meeting on Tuesday. Policymakers are broadly tipped to lower rates, though economists are still split over whether there will be a quarter point cut or a half point cut. Wall Street will also be monitoring data released Monday on pending home sales in October. Dow Jones industrial average futures rose 31, or 0.24 percent, to 13,681, while Standard & Poor's 500 futures rose 3.20, or 0.21 percent, to 1,510.50. Nasdaq 100 index futures added 5.00, or 0.23 percent, to 2,137.00. Wall Street has posted robust gains recently as investors grew more confident in the Fed's openness to loosening its policy again. The Dow has risen more than 640 points over the last two weeks, a rally that has brought the blue-chip index to less than 4 percent below the record close it reached Oct. 9. Last week, the Dow ended 1.90 percent higher, the S&P 500 index finished 1.59 percent, and the Nasdaq ended up 1.70 percent. In corporate news, Blackstone Group Inc. might be planning a bid to acquire Rio Tinto Ltd., according to Britain's Daily Telegraph. Blackstone would lead a consortium that would include China's sovereign wealth fund, according to the report. Japanese drug maker Eisai Co. said Monday it will buy U.S. biopharmaceutical company MGI Pharma Inc. for $3.9 billion in a move aimed at boosting its cancer drug business and sustaining sales growth. Oil prices slipped Monday, extending a decline that began Friday after a November U.S. jobs report turned out to be less robust than expected. Light, sweet crude fell 16 cents to $88.12 a barrel in electronic trading on the New York Mercantile Exchange. Overseas, Japan's Nikkei stock average closed down 0.20 percent, while Hong Kong's Hang Seng index fell 1.18 percent. Britain's FTSE 100 added 0.07 percent, Germany's DAX index rose 0.29 percent, and France's CAC-40 increased 0.29 percent.
7:48 pm - FKLI really moves sideway. Wash the stops at 1438/1439.0
FKLI gap down after lunch and went down straight to 1426/1427 support level. Since then, it is moving sideway.
With the FOMC Dec 11 interest rate, the market is getting trendless. Overall, FKLI market is weak but with FOMC announcement, FKLI market may jump up.
Let's see as the next few days develop.
With the FOMC Dec 11 interest rate, the market is getting trendless. Overall, FKLI market is weak but with FOMC announcement, FKLI market may jump up.
Let's see as the next few days develop.
10:08 am - FKLI has broken lower to 1426.5
With crude oil lower in NY last week, plantation theme stocks will be badly hit.
Sime, KLK and IOI Corp are down ! so will be our KLCI !
Sime, KLK and IOI Corp are down ! so will be our KLCI !
Sunday, December 09, 2007
2.57 pm - Look like DJIA had runned of steam - bear a toppish doji.
This wud affect Monday FKLI opening and rest of the week.
Paulson: Economy 'Fundamentally Healthy'
NEW YORK -(Dow Jones)- U.S. Treasury Secretary Henry Paulson Friday said the economy is "fundamentally healthy," with inflation "contained," but that the housing sector remains the largest danger.
Paulson made his comments in an appearance on CNBC.
The Treasury secretary, facing a visit to China next week, also said he wouldn't say that Chinese markets were open to the U.S.
In an appearance on the Fox Business Network, Paulson added that China's foreign exchange policy makes it increasingly difficult for that country to battle inflation.
He reiterated that a strong dollar is in the U.S.'s interests.
The Labor Department earlier in the day reported that 94,000 new jobs were created in November, topping Wall Street's expectations. Paulson, in an appearance on Bloomberg Television, said the economy would continue to grow.
In comments on the Bush administration's mortgage-relief plan, unveiled Thursday, Paulson also countered criticisms that the plan would involve taxpayer funding.
Paulson announced Thursday new guidelines by mortgage investors and servicers aimed at streamlining the process for struggling homeowners to refinance or rework their mortgages.
The streamlined procedures, which make up part of a package of government and industry measures aimed at limiting the fallout from the mortgage crisis, could help as many 1.2 million subprime borrowers get fast-track service. He told Bloomberg TV that the Treasury Department is looking at policy "prescriptions" that include the securitization process and the ratings agencies, for later consideration. He didn't elaborate.
Paulson said a much larger volume of adjustable-interest-rate increases, or resets, would be seen next year.
He also sought quick action in the House of Representatives to enact a temporary fix for the Alternative Minimum Tax. The Senate already has approved a so-called AMT patch.
The AMT, a parallel income tax, was created in 1969 to prevent a small group of very wealthy people from avoiding or greatly reducing their tax bills. Because it wasn't indexed for inflation and because recent tax cuts didn't account for it, a growing number of families would have to pay for it in the absence of legislation.
Paulson made his comments in an appearance on CNBC.
The Treasury secretary, facing a visit to China next week, also said he wouldn't say that Chinese markets were open to the U.S.
In an appearance on the Fox Business Network, Paulson added that China's foreign exchange policy makes it increasingly difficult for that country to battle inflation.
He reiterated that a strong dollar is in the U.S.'s interests.
The Labor Department earlier in the day reported that 94,000 new jobs were created in November, topping Wall Street's expectations. Paulson, in an appearance on Bloomberg Television, said the economy would continue to grow.
In comments on the Bush administration's mortgage-relief plan, unveiled Thursday, Paulson also countered criticisms that the plan would involve taxpayer funding.
Paulson announced Thursday new guidelines by mortgage investors and servicers aimed at streamlining the process for struggling homeowners to refinance or rework their mortgages.
The streamlined procedures, which make up part of a package of government and industry measures aimed at limiting the fallout from the mortgage crisis, could help as many 1.2 million subprime borrowers get fast-track service. He told Bloomberg TV that the Treasury Department is looking at policy "prescriptions" that include the securitization process and the ratings agencies, for later consideration. He didn't elaborate.
Paulson said a much larger volume of adjustable-interest-rate increases, or resets, would be seen next year.
He also sought quick action in the House of Representatives to enact a temporary fix for the Alternative Minimum Tax. The Senate already has approved a so-called AMT patch.
The AMT, a parallel income tax, was created in 1969 to prevent a small group of very wealthy people from avoiding or greatly reducing their tax bills. Because it wasn't indexed for inflation and because recent tax cuts didn't account for it, a growing number of families would have to pay for it in the absence of legislation.
Friday, December 07, 2007
9:44 am - FKLI has strong support at 1445-1448
I will wait for strength to appear before buying long at 1445-1448.
A lot of the Msia blue chips is looking to break higher. E.g. Maybank is looking to cross 200MA.
A lot of the Msia blue chips is looking to break higher. E.g. Maybank is looking to cross 200MA.
Wednesday, December 05, 2007
9:10 pm - FKLI - I am thinking of going short until I saw FOMC may cut 50 basis pts on 11 Dec
Stocks tilt to higher open ahead of data
NEW YORK (AP) - U.S. stocks headed toward a higher open Wednesday ahead of economic data that some investors hope will support a half-point interest rate cut. Wall Street is waiting for gauges on the service sector, factory orders and worker productivity. All are expected to be closely watched by the Federal Reserve, which meets for the last time this year next Tuesday. It is widely expected central bankers will lower rates to help pump up the economy and head off a recession. However, some investors are betting the Fed will go beyond the generally anticipated quarter percentage point cut, and lower rates by a half point. Investors were also hoping to rebound after two straight sessions of losses. Dow Jones industrial average futures rose 70, or 0.41 percent, to 13,332. Standard & Poor's 500 index futures rose 9.40, or 0.64 percent, to 1,472.40, and the Nasdaq composite index added 13.75, or 0.67 percent, to 2,076.00. Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.90 percent from 3.88 percent late Tuesday. The dollar was lower against other major currencies, while gold prices rose. OPEC decided Wednesday to keep output ceilings steady for now, in a move that briefly propelled crude prices above $90 a barrel. Wall Street is also waiting for government data that is forecast to show that crude oil inventories fell last week for the third straight week. Light, sweet crude rose $1.09 cents to $89.41 per barrel in premarket electronic trading on the New York Mercantile Exchange. Fannie Mae has joined rival mortgage financer Freddie Mac in cutting its dividend and selling special stock to raise capital. The government-sponsored lender hopes to cushion against mounting losses from high-risk home loans. Economists expect a report on business activity in the service sector to show slower growth than the previous month, due to pressure in the real estate, financial and shipping sectors. The Institute for Supply Management, a trade group of purchasing executives, will release its index of non-manufacturing business activity for October at 10 a.m. EST. Commerce Department figures are also expected to show factory orders in October were flat as concerns about the nation's economy's health hurt demand for manufactured goods. The data is due out 10 a.m. EST. Investors are also waiting for a government report due to show U.S. worker productivity rose in the third quarter while wage pressures slowed. The Labor Department is scheduled to release its final report of both measures for the July-September quarter at 8:30 a.m. Overseas, Japan's Nikkei stock average closed up 0.83 percent, while Hong Kong's Hang Seng index rose 1.61 percent. Britain's FTSE 100 added 1.11 percent, Germany's DAX index rose 0.69 percent, and France's CAC-40 increased 0.83 percent.
NEW YORK (AP) - U.S. stocks headed toward a higher open Wednesday ahead of economic data that some investors hope will support a half-point interest rate cut. Wall Street is waiting for gauges on the service sector, factory orders and worker productivity. All are expected to be closely watched by the Federal Reserve, which meets for the last time this year next Tuesday. It is widely expected central bankers will lower rates to help pump up the economy and head off a recession. However, some investors are betting the Fed will go beyond the generally anticipated quarter percentage point cut, and lower rates by a half point. Investors were also hoping to rebound after two straight sessions of losses. Dow Jones industrial average futures rose 70, or 0.41 percent, to 13,332. Standard & Poor's 500 index futures rose 9.40, or 0.64 percent, to 1,472.40, and the Nasdaq composite index added 13.75, or 0.67 percent, to 2,076.00. Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.90 percent from 3.88 percent late Tuesday. The dollar was lower against other major currencies, while gold prices rose. OPEC decided Wednesday to keep output ceilings steady for now, in a move that briefly propelled crude prices above $90 a barrel. Wall Street is also waiting for government data that is forecast to show that crude oil inventories fell last week for the third straight week. Light, sweet crude rose $1.09 cents to $89.41 per barrel in premarket electronic trading on the New York Mercantile Exchange. Fannie Mae has joined rival mortgage financer Freddie Mac in cutting its dividend and selling special stock to raise capital. The government-sponsored lender hopes to cushion against mounting losses from high-risk home loans. Economists expect a report on business activity in the service sector to show slower growth than the previous month, due to pressure in the real estate, financial and shipping sectors. The Institute for Supply Management, a trade group of purchasing executives, will release its index of non-manufacturing business activity for October at 10 a.m. EST. Commerce Department figures are also expected to show factory orders in October were flat as concerns about the nation's economy's health hurt demand for manufactured goods. The data is due out 10 a.m. EST. Investors are also waiting for a government report due to show U.S. worker productivity rose in the third quarter while wage pressures slowed. The Labor Department is scheduled to release its final report of both measures for the July-September quarter at 8:30 a.m. Overseas, Japan's Nikkei stock average closed up 0.83 percent, while Hong Kong's Hang Seng index rose 1.61 percent. Britain's FTSE 100 added 1.11 percent, Germany's DAX index rose 0.69 percent, and France's CAC-40 increased 0.83 percent.
3:43 pm - FKLI is at its highest - 25 years high
FKLI Dec clocked 1,444.5.
However, we have taken profits along the way at 1427,1437.5,1440.0
Entry at 1415.0
However, we have taken profits along the way at 1427,1437.5,1440.0
Entry at 1415.0
9:42 am - FKLI has a support at 1414-1416 level.
Due to Sime RM +0.10 increase, our KLCI goes up 1.8-2.0 pts.
This is extraordinary and this is how they can control our KLCI which in turn control the FKLI.
This is extraordinary and this is how they can control our KLCI which in turn control the FKLI.
Wednesday, September 12, 2007
FKLI is below 50MA and cross down - Look to short now.
Short if it break below 1263.5. However, FKLI trading at discount -19 pts.
Thursday, August 23, 2007
Wednesday, August 22, 2007
Tuesday, August 14, 2007
Friday, August 10, 2007
9:05 am - FKLI has cross down - Massive fall from DJIA -387 pts drop
Is the world coming to an end ?
Thursday, August 09, 2007
Wednesday, August 08, 2007
2:33 pm : FKLI did break out 1380.0
There were no 7 bars line at the crossover. No signal for long.
It is ok if FKLI goes higher.
It is ok if FKLI goes higher.
Tuesday, August 07, 2007
10:06 am - No long position as MACD cross over but no 7 bars line change
The FKLi is gapping very widely making trading difficult to judge.
Monday, August 06, 2007
10:09 am - FKLI long position stopped out at 1369.0
Loss of 43.5 pts. The biggest loss so far experienced.
Friday, August 03, 2007
9:09 am - FKLI has cross up but the trap is ...
Mkt does not like gap up on good news. However, cross did occur and with 44 pts discounts. This is an attractive trade.
Wait till 10 am.
Wait till 10 am.
Wednesday, August 01, 2007
Monday, July 30, 2007
12:45 pm - Waiting for FKLI to cross up
Almost any time now. Targeting Aug contract as July is expiring.
Thursday, July 26, 2007
4:12 pm - No short signal for FKLi despite MACD crosses down
Leave this one and look to go long as you have a premium for Aug contract.
Wednesday, July 25, 2007
Tuesday, July 24, 2007
Monday, July 23, 2007
Friday, July 20, 2007
Thursday, July 19, 2007
11:09 am - Lot of short covering this morning !
There were considerable vol in covering short position today. Since then, there is no up push of the FKLI.
Wait for FKLI to cross up.
Wait for FKLI to cross up.
Monday, July 16, 2007
Friday, July 13, 2007
Thursday, July 12, 2007
Wednesday, July 11, 2007
Tuesday, July 10, 2007
Monday, July 09, 2007
Friday, July 06, 2007
Thursday, July 05, 2007
Wednesday, July 04, 2007
Tuesday, July 03, 2007
Monday, July 02, 2007
Thursday, June 21, 2007
Tuesday, June 19, 2007
Monday, June 18, 2007
5:17 pm - An update - FKLI cross over on 14 June 07
Long at 1355 and at the current stop loss at 1375. In the money +20 pts.
Thursday, June 07, 2007
4:29 pm - FKLI gap down 20 pts due to DJIA +130 drop
I know I cannot get out at this prices so waited till market rebounded and got out at 1360.5.
Loss -9 pts.
Loss -9 pts.
Wednesday, June 06, 2007
Thursday, May 31, 2007
10:41 am - FKLI for June contracts gap up at this point
FKLI MACD cross up due to gap up is not a good probability trade.
9:36 am - DJIA +116 cause the FKLI to gap up on low volume.
I do not think FKLI can sustain higher on lower volume. Look to short at this point.
Wednesday, May 30, 2007
Monday, May 28, 2007
Friday, May 25, 2007
Thursday, May 24, 2007
Tuesday, May 22, 2007
Monday, May 21, 2007
12:54 pm - Mkt getting volatile. MACD did cross down but ...
MACD move back up again, I think this is setting a short position soon.
Friday, May 18, 2007
Thursday, May 17, 2007
Tuesday, May 15, 2007
Monday, May 14, 2007
Friday, May 11, 2007
Thursday, May 10, 2007
10:31 am - FKLi did cross up but no 7 bar line
If it takes out 1353.5, I may consider it.Else it maybe sideway.
Friday, May 04, 2007
Thursday, May 03, 2007
Monday, April 30, 2007
Friday, April 27, 2007
Thursday, April 19, 2007
10:38 am - I heard there is another round of selling in the China Market.
The price reflects before the news ! Prices first then news !
Trail stop to 1285.0
Trail stop to 1285.0
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