10:24 am - FKLI starting to move up due to Hang Seng turning positive.

9:30 am - FKLI has closed this morning gap indicates short term bullish

Look at the tail of 31 Dec 07 for FKLI Jan. The low was 1414.0

10:16 am - DJIA falls on the last day of the year

Stocks fall on last day of 2007 NEW YORK (AP) - Wall Street ended a painful year with another steep loss Monday as investors glumly anticipated that 2008 would bring more of the uncertainty and turbulence of 2007. The Dow Jones industrials fell 101 points, the latest in a string of triple-digit moves that became commonplace in the just-ended year amid a continuum of bad news about housing, faltering mortgages and shrinking credit. Thanks to a big first-half advance, they managed to finish 2007 with a respectable increase of 6.43 percent -- not as large as the 16.29 percent jump in 2006, but a better performance than the modest loss in 2005. The Dow's annual gain came even after it posted its worst fourth-quarter drop in 20 years, amid billion-dollar losses at the world's biggest financial firms and falling spending by consumers whose budgets have been crimped by record-high oil prices and declining home prices. "Considering all that's going on, the market really acted pretty well," said Todd Leone, managing director of equity trading at Cowen & Co. It's tough to say what the primary market driver of 2008 will be, but the stock market faces a slew of threats: more adjustable-rate mortgage resets, a still-tight credit market and the possibility of accelerating inflation. But Leone said the fourth-quarter earnings season in January should shed some light on how U.S. companies are surviving the recent slowdown and credit crunch. There was more downbeat news on housing Monday. The National Association of Realtors said November existing home sales rose 0.4 percent to an annual rate of 5 million -- the first rise in nine months. However, sales are 20 percent below where they were a year ago, and the median existing home price has dropped 3.3 percent over the past 12 months. Falling home prices have made it hard for struggling homeowners to refinance their mortgages, and the slump in construction activity has hurt homebuilders and other housing-related industries. Still, there were some slivers of optimism Monday. The U.K.'s Observer newspaper reported Sunday that Merrill Lynch & Co. was in talks over the weekend to line up capital from investors in China and the Middle East in exchange for portions of the Wall Street firm. Merrill, like many other financial houses, has seen its portfolio lose billions of dollar in value due to misplaced bets on mortgages. And as Citigroup Inc., UBS AG, Morgan Stanley and Bear Stearns Cos. have done, it has turned to investors in Asia for much-needed capital -- Merrill has already gotten $4.4 billion this month from a Singapore fund, which bought a 9.9 percent stake in the U.S. brokerage. The Dow fell 101.05, or 0.76 percent, to 13,264.82. The blue-chip index remains below its Oct. 9 record high of 14,164.53, at which point it was up more than 13 percent year-to-date. The Standard & Poor's 500 index and the technology-dominated Nasdaq composite index also declined Monday, but both posted annual gains for the fifth straight year. The S&P 500 index fell 10.13, or 0.69 percent, to 1,468.36, to end 2007 with a gain of 3.53 percent. It had reached a record close of 1,565.15 on Oct. 9. The Nasdaq fell 22.18, or 0.83 percent, to 2,652.28, to finish the year with a 9.81 percent gain. Despite the market's volatility, this was the best performance for the Nasdaq, still well below its tech boom highs, since 2003. Government bonds rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, slid to 4.03 percent from 4.12 percent late Friday, and is down nearly 17 percent for the year. Declining issues narrowly outnumbered advancers on the New York Stock Exchange, where volume came to a light 1.15 billion shares. 2007 was a remarkable year on Wall Street. The market began the year continuing the rally that propelled the Dow above 12,000 for the first time in October. Then, in late February, came a reminder that stocks were capable of turning tail and plunging -- a skid on China's stock market and an ominous economic outlook from former Federal Reserve Chairman Alan Greenspan sent the Dow down 416 points in one day. That panic didn't last long. In April, the Dow barreled above 13,000 for the first time and then glided past 14,000 in mid-July. But in late July, however, the market realized that the ongoing slump in housing, and a rise in mortgage foreclosures due to resetting adjustable-rate loans, was taking a toll across the credit markets. Though the housing market started teetering as early as 2005, few people anticipated how much the downturn could affect the global financial system. Mortgages given to borrowers deemed "subprime" comprised only about an eighth of the $10 trillion U.S. mortgage market -- why would that rattle the world markets? The problem was, these pieces of debt were chopped up, repackaged and woven into larger fixed-income instruments, on which banks and other investors made billion-dollar bets -- bets that were extremely profitable during the housing boom, but calamitous when borrowers couldn't keep up with their mortgage payments. When one slice of the instrument defaulted, it pulled the whole thing down with it. Investors bailed out of anything tied to mortgages, and soon Wall Street discovered that financial institutions in the United States and overseas were holding billions of dollars in assets that were losing value by the day. The biggest names on the Street -- Merrill Lynch, Citigroup Inc., Bear Stearns Cos. -- announced billions of dollars in writedowns. Merrill and Citi lost their CEOs, and several financial firms sought out billion-dollar investments to clean up their balance sheets. In the midst of this turmoil, the credit markets all but seized up, and all these interconnected events pummeled stocks. The Dow suffered triple-digit drops, recoveries and then drops again as Wall Street stumbled through months of volatility reminiscent of the terrible days after the 2001 terror attacks. In August and September the Federal Reserve began to act, with interest rate cuts and injections of liquidity. It helped for a while, and in October, stocks were rallying again taking the Dow to another set of record highs -- only to succumb again to fears about the unknown extent of the credit mess. Wall Street enters 2008 with that same concern, not to mention oil's surge this year of about 60 percent to nearly $100 a barrel, and the U.S. dollar's tumble to record lows against the euro. On Monday, the dollar rose against most other major currencies, gold prices fell, and crude oil prices slipped 2 cents to settle at $95.98 a barrel on the New York Mercantile Exchange. "We've seen the return of volatility. I think that will be around for a while, and will govern trading for the new year," said Scott Fullman, director of investment strategy for I. A. Englander & Co. "Stock selection and strategy will play a very important part in the success of anybody who is trading going into the new year. This is not a time where you throw a dart at the board." In 2007, the technology, energy, industrials and healthcare sectors did well, while the financial industry and small-caps -- usually fledgling companies that rely heavily on loans to grow their business -- lagged. The Russell 2000 index of smaller companies fell 5.73, or 0.74 percent, to 766.03 Monday. The small-cap index finished the year down 2.75 percent.

5:12 pm - FKLI Jan doing a year end wash back to 1414.0

If this is a wash, then we have a good start for 2008.

If this is a true for reversing the up trend, then we have a down trend for the first week of 2008.

Look at the tail.

10:03 - FKLI Jan gap up to cross the resistance @ 1444.5

Technically, FKLI Jan has touch the last high @ 1454.5. Currently it is trading 1452/1451.5

9:31 am - KLCI is certainly bullish. Vol is steady and not high is good for breakout.

9:59 am - FCPO will trend higher next week as it track against soybean.

Soybeans prices reach 34-year high NEW YORK (AP) - Soybean futures fell Friday, pulling back after touching a 34-year high on expectations for robust exports next year and continued strong demand from China. Gold prices climbed almost $11 an ounce, boosted by strong oil prices, weak economic data in the U.S., and world political concerns following Thursday's assassination of Pakistani opposition leader Benazir Bhutto. Wheat futures dropped sharply and oil prices fell. Trading was light in most financial markets due to the holiday season, and that tended to exaggerate many price movements including the turnaround in soybeans. U.S. exporters have already sold roughly three-quarters of the soybeans the Agriculture Department predicts for the whole marketing year, which ends in June 2008. To make up for dwindling inventories, analysts say farmers need to plant more soybeans than they did last year -- when an ethanol boom led farmers to favor planting corn acres over soybeans. So far this year, soybean exports are running at 735 million bushels, or about 74 percent of the USDA's total estimate of 995 million bushels. Last year, the farmland dedicated to soybean plantings was reduced by 15 percent. Feeding Friday's record was continued strong demand from China, the world's largest consumer of soybean oil, said DTN commodities analyst Elaine Kob. "It's really been an impressive week for soybeans," she said. A bushel of soybeans for March delivery settled down 8.5 cents at $12.23 a bushel. The price had jumped to $12.48 overnight, beating June 1973's closing high of $12.10 but still shy of that day's trading record of $12.90 a bushel. Wheat for March delivery fell 26.25 cents to $9.15 a bushel. March corn rose 2.5 cents to $4.5475 a bushel, while March oats traded flat, settling at $$3.09 a bushel. Gold prices advanced on the precious metal's appeal as a safe haven investment during political uncertainty. Bhutto's assassination in a suicide bombing has stirred investor worries about further instability in the region. "The geopolitical background continues to unnerve a lot of people," said Jon Nadler, senior analyst at Kitco Bullion Dealers, adding that gold has "the potential to close out the year at its very peak." The dollar's steep drop against the 13-nation euro this year has been a major driver behind gold's advance from less than $650 an ounce in January to a 28-year high near $850 an ounce in November. Gold futures are up nearly 32 percent this year, Nadler said. An ounce of gold for February delivery added $10.90 to settle at $842.70 on the New York Mercantile Exchange. March silver climbed 0.077 cent to $14.895 an ounce, and Nymex copper for March delivery fell 6 cents to close at $3.0720 a pound. The dollar fell against the euro and yen in late New York trading, but strengthened versus the pound. Hampering the rise of gold and other commodities was a government report showing sales of new homes fell in November to their lowest level in more than 12 years. The Commerce Department said new home sales fell 9 percent from October to a seasonally adjusted annual rate of 647,000. Copyright 2007 Associated Press. All rights reserved. This material may

5:09 am - KLCI boleh ! Last minutes pushed up by the big institution !

KLCI boleh ! and ready for Jan 2 rally.

FKLI Jan closed with a upthrust. Let's see how Monday 31 Dec wud open with effect of DJIA tonite.

4:10 pm - After Hong Kong Hang Seng market closes at 4 pm, FKLI will set its goal for higher.

Not influenced by Hang Seng market, the Malaysian "Tai Ko" can move the market up with relative easy effort.

12:54 pm - FKLI is holding up and looking to break upside.

9:29 am - Market reacting to Bhutto's assassination

However, FKLI and KLCI holding nicely.

5:43 pm - FKLI trade higher. Our long position is in nicely

Took the long trade after it broke up.

12:21 pm - FKLI broke out nicely to 1435

Look like we are in long again.

9:44 am - FKLI Jan 2008 contract break out for the 3rd attempt

Let's see if we get a bullish year end closing. Here is the 15 mins chart on the breakout.

2:36 pm - FKLI Dec 2006 - Modest uptrend until first week of Jan 2007

11:31 am - FCPO - 26 Dec 2006. Today based last year.

FCPO had a good run on 26 Dec 2006. It hit a new high on that day. This nice uptrend during the last 2 weeks of Dec 2006 is due to the flooding in the palm oil estate.

10:58 am - FCPO export Dec 1-25 down -0.8%

Despite negative news on FCPO, FCPO continue to power higher. Last high at 3068 and today's high at 3064.

9:53 am - Go Long if break above 3018 resistance for FCPO

If you have been reading my CI/CPO newsletter dated 24-28 Dec 2007, there is a recommendation to go long if break 3018 resistance.

The FCPO is in an uptrend on a daily basis (check out 240 mins chart posted earlier).

Trade FCPO with a wider stop at least 40-60 pts on a daily basis.

Here is a snapshot of my newsletter dated 24-28 Dec 2007

9:35 am - FCPO is trending nicely & closed 3030 last Monday.

Crude oil has risen and soy bean oil has broken to new all time high.

Look at the 240 mins chart of FCPO -March 08 contract.

3:30 am - FCPO is trending nicely along 240 mins chart.

Here is an opportunity to go long at 3015/3016 on a 15 mins entry using breakout as your entry approach and using 240 mins as stop. Trail your stops on the 240 mins as FCPO break higher.

On my CI & CPO weekly newsletter, weekly entry is 3,018 on the long position using daily chart.

12:21 am - FKLI broke higher to 1427.5

It is treading nicely along the Bollinger Band. Can you buy now ? You can buy on the basis of EOD chart. Today is 5 days line change. You are looking at 25-30 pts stop if you are trading daily chart.

However, on the daily chart, FKLI is currently trading at 61.8% (downtrend). If FKLI can break higher above 61.8%, FKLI can trend higher. The 61.8% is a resistance.

4:51 pm - FKLI is trading in bullish terrority.

FKLI is trading at this point +12 pts premium.

Wait for DJIA closing tonite. If it is good DJIA closing > 150 pts, MOnday is selling day i.e. to take profit.

If DJIA closing low to slightly high, Monday is a day for going long.

As forecasted, when all the fund mgrs are on leave due to holiday seasons, they run the market up.

11:49 am - Looking for a re-entry to go long to ride this mini year end rally

On uptrend, FKLI wud retraced back to 38.2% or 50% retracement.

So if this top @ 1406 for today, then look to buy back at 1390.8 (38.2%) or 1386.0 (50%).

10:14 am - FKLI rebounds after 1 day of holiday.

As DJIA not falling too much and the regional markets are recovering, so too is FKLI.

Looks like FKLI has taken out the last high at 1397 with its today's high at 1398.5. On the intraday, FKLI is forming a double top. This is a strong resistance. If the top at 1398.5 is taken out, think to go long.

5:12 pm : FKLI closed +3.5 pts due to last seconds buying

It was a see-saw market for FKLI, morning up and afternoon selldown to 1387 prior to pre-matching.

DJIA futures is -10 pts.

With the public holiday Hari Haji, let's see how DJIA is going to work out.

9:27 am - We were long yesterday as KLCI had 5 consecutive down bar

There were a lot of short covering yesterday i.e. for those who shorted the FKLI in the past few days are covering their short position by going long or buying.

There will be more short covering today and these "shorties" are going long - fueling to the reversal of FKLI.

10:07 am - FKLI is about to cross up.

Be ready to go long.

9:55 am - FKLI may be heading for a reversal soon.

After 3 consecutive days of downtrend, FKLi is ready for a reversal ??

Look at Hrly bar.

1:12 pm - FKLI holding nicely at 1389-1390

Despite selldown by KLCI, FKLI holding up. If this continues to after lunch, we are looking for a rally, maybe a reversal soon.

2:04 pm - Wow ! Another down day for DJIA. Expect gap down for FKLI on Monday.

Wall Street sells off on inflation fears

NEW YORK (AP) - Stocks finished a bruising week on the downside Friday after a jump in consumer inflation raised concerns about how much freedom the Federal Reserve has to continue cutting interest rates. The Dow Jones industrial average gave up more than 178 points. Concerns emerged after the Labor Department reported its consumer price index had a bigger-than-expected jump for November, with large increases in the cost of clothing, airline tickets and prescription drugs. That raised questions about the Fed's options for priming the economy. Policymakers this week lowered interest rates and announced a plan to align with other key central banks and offer loans to pressed lenders around the world. But while it wants to stimulate the U.S. economy and make lending easier among banks wary of faltering debt, the Fed also has to keep a watchful eye on inflation. Robert Dye, senior economist at PNC Financial Services Group, said the economic readings this week painted a mixed picture for investors, spurring some of the market's volatility. "If you take the stronger-than-expected economic data we saw this week in the form of retail sales and add to that the inflation data and then combine that with a somewhat ambiguous statement from the Fed, you get a picture as clear as mud," he said. The uncertainty weighed on the markets Friday, a day after stocks finished mixed. The Dow Jones industrial average fell 178.11, or 1.32 percent, to 13,339.85. Broader stock indicators also fell. The Standard & Poor's 500 index dropped 20.46, or 1.37 percent, to 1,467.95, and the Nasdaq composite index fell 32.75, or 1.23 percent, to 2,635.74. It resulted in Wall Street's worst weekly showing in a month. For the week, the Dow tumbled 2.10 percent, while the S&P 500 declined 2.44 percent and the Nasdaq shed 2.60 percent. Bond prices fell for the third straight day. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 4.23 percent from 4.21 percent late Thursday. The dollar was mixed against other major currencies, while gold prices fell. Light, sweet crude dropped 98 cents to $91.27 per barrel on the New York Mercantile Exchange. Friday's report on inflation follows a reading Thursday that showed the biggest jump in inflation at the wholesale level in 34 years. The 0.8 percent increase in consumer prices topped the 0.6 percent rise economists had been expecting. The report also showed so-called core inflation, which excludes often-volatile food and energy prices, had its biggest increase in 10 months, rising 0.3 percent. Dye said the Fed could be proven wise for cutting interest rates by just a quarter of a percentage point Tuesday rather than by a half point as some investors had hoped. Stocks fell sharply Tuesday after the Fed's rate decision and staged a partial rebound Wednesday after the Fed announced its liquidity plan with other central banks. The uptick in core inflation is unnerving, Dye said, because it makes it harder for the Fed to justify further rate cuts. Also Friday, the Federal Reserve said industrial production rebounded in November, increasing 0.3 percent after a steep 0.7 percent decline in October. The increase came in slightly ahead of Wall Street's expectations. But beyond economic reports, investors faced more news from the troubled banking sector. Citigroup Inc. fell 31 cents to $30.70 after the bank announced late Thursday it plans to move $49 billion of assets from seven "structured investment vehicles" onto its books to help the SIVs repay their debts. The bank had said earlier it had no plans to bring the SIVs onto its books. Citigroup's Vikram Pandit, who on Tuesday became chief executive, said taking control of the SIVs was the best way to guard their credit ratings and help them sell their investments at decent prices. SIVs are complex investments set up by banks and sold to investors and have come under pressure in recent months because of their investment strategy, which involves the use of mortgage investments and other now-risky debt. The resulting drop in demand hurt the value of the SIVs. Declining issues outnumbered advancers by more than 2 to 1 on the New York Stock Exchange, where volume came to 3.25 billion shares from 3.49 billon on Thursday. The Russell 2000 index of smaller companies fell 15.53, or 2.02 percent, to 753.93. Overseas, Japan's Nikkei stock average slipped 0.14 percent. Britain's FTSE 100 rose 0.52 percent, Germany's DAX index rose 0.25 percent and France's CAC-40 rose 0.26 percent.

8:00 pm - Lower closing for KLCI

Malaysian shares close lower on local political tension, shaky US outlook

- KUALA LUMPUR (Thomson Financial) - Malaysian shares closed lower Friday as investors continued to trim positions ahead of the weekend given rising domestic political tensions and a shaky outlook for the US economy. The government detained five leaders of Malaysian Indian activist group Hindraf Thursday under a security law after the group held a mass anti-government protest in Kuala Lumpur last month. The Hindraf rally was held just two weeks after a demonstration was organized by electoral reform campaigners. The Kuala Lumpur Composite Index (KLCI) closed down 7.15 points or 0.5 percent at 1,403.41, off a low of 1,396.45. For the week, the KLCI was down 30.63 points or 2.1 percent. The FTSE Bursa Malaysia 30-large cap index dropped 58.53 points or 0.6 percent to 9,036.3 and the FTSE Bursa Malaysia second board index was down 7.17 points or 0.1 percent at 6,678.32. Decliners beat advancers 453 to 347 with 299 stocks unchanged and 246 counters untraded. Trading volume was thin at 668.5 million shares, valued at 1.66 billion ringgit.

7:52 pm - FKLI closed lower at 1395.0

The trend is still down. FKLI had 3 consecutive down bar in a row. Watch out for the reversal bar. Maybe next week.

12:55 pm - FKLI breakdown to 1389.5 lowest of the day.

However, TG indicates no signals. So we forgo the short trade

But now it has 3 strengths in intraday charts. HSI Hong Kong recover back. Looking to go long.

9:40 am - FKLI gap up due to support on DJIA.

Nikkei is positive and ST Spore is slightly positive.

Possibility to short FKLI at 1400 or below. At this point, think long.

9:16 pm - DJIA closing lower looks more certain.

TG indicates weakness for DJIA.

Wall Street poised for lower open

NEW YORK (AP) - U.S. stocks headed for a lower open Thursday as investors appeared skeptical that a plan from the Federal Reserve and other central banks to ease tightness in the credit markets would prove effective. Stocks declined overseas amid uncertainty over the plan after an initial burst of enthusiasm in the U.S. on Wednesday gave way to concerns about the effort to inject liquidity into the credit markets. U.S. stocks ended higher but well off their highs Wednesday as investors took a closer look at the Fed's agreement with the European Central Bank and the central banks of England, Canada and Switzerland to combat what it labeled elevated pressures in the credit markets. Uncertainty continued Thursday ahead of several economic readings due before the opening bell, including the Labor Department's producer price index, a reading of inflation levels. In addition, the Commerce Department is slated to release its November retail sales report. The reading could be an important snapshot of retailers' health heading into what is for many the most important period of the year. The uncertainty over the economy sent stock futures lower on Thursday. Ahead of the opening of trading, the Dow Jones industrial average futures fell 114, or 0.84 percent, to 13,386. Standard & Poor's 500 index futures fell 13.90, or 0.93 percent, to 1,476.30, while Nasdaq 100 index futures fell 22.50, or 1.07 percent, to 2,085.20. Bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its yields, rose to 4.10 percent from 4.06 percent late Wednesday. The dollar rose against other major currencies, while gold prices fell. Light, sweet crude rose 19 cents to $94.58 per barrel in premarket electronic trading on the New York Mercantile Exchange. In afternoon trading, Britain's FTSE 100 fell 2.23 percent, Germany's DAX index lost 1.29 percent, and France's CAC-40 fell 2.18 percent. In Asia, Japan's Nikkei stock average closed down 2.48 percent, while Hong Kong's Heng Sang index lost 2.72 percent on the day. In corporate news, Costco Wholesale Corp.'s fiscal first-quarter profit climbed 11 percent amid membership fee growth. The warehouse retailer's results met Wall Street's expectations. Investors also awaited fiscal-fourth quarter results from Lehman Brothers Holdings Inc. expected Thursday morning. Dow Chemical Co. said it agreed to sell a 50 percent stake in five of its global businesses to a Kuwaiti company for about $9.5 billion to form a joint petrochemicals venture.

5:16 pm - FKLI closed at 1400.0 down -21.0 pts.

DJIA futures is down -44 pts.

Wud DJIA closed lower tonite. If so, DJIA closed lower, we wud have a opening gap and think to go long.

If DJIA down by -200 pts tonite, FKLI wud probably gap down to 1384-1390.0 on the opening.

4:26 pm - FKLI really sell down today. However TG was too late on the position trade

Intraday TG is whipsawing too. It has long position earlier in the morning and short just before lunch.

Position TG system indicates and it was too late already at 1409.0. No edge !

A well known newsletter in town was long on this current trade with stop loss at 1414 and they got hit too. The daily FKLI traders (those who use eod chart) were stopped out now.

5:54 pm - No position after closing our long position.

DJIA Futures is up by +95 pts.

Let's see if DJIA wud close up tonite after -290 pts.

4:07 pm - Tradeguide indicates 2 weakness on FKLI

If FKLI breaks lower, we are looking to short the market.

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.

3:20 pm - FKLI finally broke out the resistance 1441/1442

It has gone up prior FOMC tonite.

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.

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.

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.

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 !

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.

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.

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.

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

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.

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.

11:42 am - Trail stop to 1253.5

Trade #8 is in the money +19 pts.

12:12 noon - FKLI cross up - Long 1234.5

Stop loss at 1206.0

10:49 am - Trade 7 is out with -3 pts. loss

Waiting for the next trade.

5:37 pm - Trade FKLI went long at 1271.5 yesterday

Stop out at 1254. Loss -17.5 pts

8:51 pm - FKLI stopped out at 1252.5

Loss of -14.5 pts

9:05 am - FKLI has cross down - Massive fall from DJIA -387 pts drop

Is the world coming to an end ?

4:46 pm - FKLI has crossed down below 50MA

Ready to short when crossdown.

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.

10:05 am - FKLI has crossed up due to gap up

However, there is no 7 bars line change.

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.

10:05 am - Short position stopped out at 1285.5

Loss of 27 pts.

10:09 am - FKLI long position stopped out at 1369.0

Loss of 43.5 pts. The biggest loss so far experienced.

10:49 am - FKLI short at 1258.5

Stop loss at 1285.5

10:19 am - Long Aug contract at 1312.5

Stop loss at 1275.0

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.

3:11 pm - Short position triggered at 1295.0

Today profits +27 pt.

2:34 pm - Trail stop to 1303.0

12:37 noon - Trail stop to 1324.5

11:35 am - Short at 1322.0

Stop loss at 1331.5

11:06 am - FKLI Aug cross down - Ready to short

9:42 am - Stop triggered at 1345.5

Profit +10 pts.

8:27 pm - FKLI cross over at 4 pm

Long Aug contract at 1335.5. Stop loss at 1323.0

12:45 pm - Waiting for FKLI to cross up

Almost any time now. Targeting Aug contract as July is expiring.

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.

5:27 pm - FKLI finally stop out at 1382.0

Stop out at 1382.0. Loss -4.5 pts

Beware of the Black Swan !

Mkt gap down and wait to sell at 1382.0

10:14 am - Trail stop to 1377.5

3:45 pm - FKLI crosses over again.

Long at 1386.0 and stop loss at 1376.0

10:23 am - FKLI gap down due to DJIA -150 pts drop

Stop out at 1371.5 -> +2.5 pts.

4:46 pm - FKLi has moved higher

Trail stop to 1371.5

10:30 am - FKLI gap up to 1381.5

Move stop to 1368.5 pts.

4:02 pm - FKLI fill at 1369.0 instead

Long at 1369.0. Stop loss 1356.5

3:13 pm - Buy stop limit at 1367.5

Waiting for FKLI to break upside.

2:56 pm - FKLI is ready to cross up

Place buy limit at the high 1367.5

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.

2:39 pm - FKLI stopped out 1379.5

Stop out with +13 pts.

11:29 am - Trail stop to 1370.5

Trail is in the money +4 pts.

5:36 pm - Trail stop to 1357.5

10:46 am - FKLI cross over - Long position initiated

Long at 1366.5. Stop loss at 1354.5

10:44 am - FKLI stop out at 1354.5

Profit +13 pts.

4.30 pm - Trail stop to 1358

In the money +9.5 pts.

12:19 noon - Trail stop lower

Trail stop to 1360.5

10:48 am - FKLI moves lower

Trail stop to 1361.0

11:31 am - FKLI cross down and below 50MA - Short FKLI

Sell at 1367.5. Stop loss at 1373.5

10:14 am - Stopped out at 1372.5

No loss or win. +0 pts.

3:42 pm - FKLI going thru accumulation stages

Trail stop higher to 1372.0

5:05 pm - FKLI goes long at 1372.5

Stop loss at 1362.5

10:37 am - Stop out at 1373.5

Profit +27 pts.

3:31 pm - Trail stop to 1369.5

+23 pts in the money