If FKLI can closed above 1282, we wud seeing higher FKLI tomorrow.
Monday, April 21, 2008
4:12 pm - FKLI is moving sideway and building base at 1282/1282.5
If FKLI can closed above 1282, we wud seeing higher FKLI tomorrow.
10:19 am - FKLI is slowing moving up with some selling in progress.
If FKLI can close above 1276, this is a good day for FKLI.
9:25 am - FKLI had crossed up. Going LONG soon !
If HSI does not selldown, FKLI will be a good day !
Saturday, April 19, 2008
8:17 am - DJIA up +228 pointing to a strong day for FKLI on Monday !
NEW YORK (AP) - Wall Street topped off a strong week with a big rally Friday, after results from companies such as Citigroup Inc. and Google Inc. helped ease investor anxiety about the health of corporate profits. Investors have been worried that recent data indicate a slowing economy,which would cut into profit growth at some of the nation's biggest companies.But, results so far have shown that earnings, for the most part, are meeting orbeating expectations, and the major indexes all posted gains of more than 4percent for the week. Citigroup, the nation's biggest bank, encouraged investors with results thatdidn't contain any big surprises. The New York-based bank reported a loss of$5.1 billion during the first quarter because of poor bets on mortgages andleveraged loans, but the loss was half the $10 billion recorded for thepreceding quarter. Google helped boost investor sentiment, as well as the tech-heavy Nasdaqcomposite index, by reporting first-quarter earnings and revenue growth thathandily topped analysts' predictions. "This is the first week of earnings reports, and the marquee companies ingeneral have been able to report good earnings, and the banks have been able toraise capital, and the market is responding to that," said Subodh Kumar, globalinvestment strategist at Subodh Kumar & Assoc. in Toronto. The Dow Jones industrial average jumped 228.87, or 1.81 percent, to12,849.36. Broader stock indicators also showed sizable advances. The Standard & Poor's500 index increased 24.77, or 1.81 percent, to 1,390.33, and the Nasdaq rose61.14, or 2.61 percent, to 2,402.97. Advancing issues outnumbered decliners by more than 3 to 1 on the New YorkStock Exchange, where consolidated volume came to 4.12 billion shares comparedwith 3.6 billion shares traded Thursday. The gains come at the end of a big week for stocks. After a quiet start tothe week, the major indexes surged more than 2 percent Wednesday after JPMorganChase & Co., Intel Corp. and Coca-Cola Co. reported better-than-expectedprofits. Stocks then finished mixed Thursday, largely holding their gains. Forthe week, the Dow rose 4.25 percent, the S&P 500 gained 4.31 percent and theNasdaq jumped 4.92 percent. Bond prices rose after initially declining when stocks rallied. The yield onthe benchmark 10-year Treasury note, which moves opposite its price, fell to3.70 percent in late trading from 3.73 percent late Thursday. And investors appeared unfazed by the latest spike in energy prices. Oiljumped to $117 a barrel for the first time when a militant group in Nigeria saidit sabotaged a major oil pipeline. Light, sweet crude for May delivery rose to a new trading record of $117 inafter-hours electronic trading Friday, after settling up $1.83 at a record$116.69 a barrel on the New York Mercantile Exchange. It was the fifth day in arow crude prices set new records. Meanwhile, a survey of gas stations by AAA and the Oil Price InformationService found that the national average price of regular gas rose 2.7 centsovernight to a record $3.445 a gallon. Gold prices fell, while the dollar was mixed against other major currencies. Kumar contends that while investors appear upbeat following thestronger-than-expected quarterly reports, Wall Street will likely still bouncearound for some time as it tries to get a read on the fate of the economy. "The market is trying to find a bottom and that's why you're seeing thesevolatile days," he said. "I think before one can say that the markets are readyto make a sustained move upward, you have to look at the negative side," hesaid, pointing to high prices for oil and food. He also emphasized that it was still early in the earnings-reporting period. Doug Roberts, chief investment strategist at Channel Capital Research, alsobelieves the market is engaged in the sometimes messy process of establishing abase. "My sense is, at least short term, we've reached some kind of a bottom," hesaid. "There was just so much pessimism built into everything." Unease did appear to dissipate. Wall Street's "fear index" -- the ChicagoBoard Options Exchange's volatility index -- declined 1.2 percent Friday. On a day with little economic news, corporate reports peeled away some ofWall Street's worries. Citigroup closed up $1.08, or 4.5 percent, to $25.11, while Google surged$89.87, or 20 percent, to $539.41 after the companies issued their reports. Heavy equipment maker Caterpillar Inc. rose $6.69, or 8.5 percent, to $85.28after reporting that demand for its global mining and energy products drovefirst-quarter earnings up a better-than-expected 13 percent. The company alsoaffirmed its 2008 forecast. The Russell 2000 index of smaller companies rose 13.07, or 1.9 percent, to721.07. Overseas, Japan's Nikkei stock average rose 0.58 percent. Britain's FTSE 100finished up 1.27 percent, Germany's DAX index rose 2.41 percent, and France'sCAC-40 rose 2.05 percent. The Dow Jones industrial average ended the week up 523.94, or 4.25 percent,at 12,849.36. The Standard & Poor's 500 index finished up 57.50, or 4.31percent, at 1,390.33. The Nasdaq composite index ended the week up 112.73, or4.92 percent, at 2,402.97. The Russell 2000 index finished the week up 32.91, or 4.78 percent, at721.07. The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted indexthat measures 5,000 U.S. based companies -- ended Friday at 14,017.30, up 562.06points, or 4.18 percent, for the week. A year ago, the index was at 14,909.05. Copyright 2008 Associated Press. All rights reserved. This material may not be
Friday, April 18, 2008
4:08 pm - FKLI has broken above 1258 and many short seller had to cut loss.
High at 1263.5. This is maximum point.
9:33 am - DJIA is rangebound around 12,150-12,700
Just like our KLCI market. Despite bad news from Merril Lynch (see news below), DJIA is holding up with a doji.
Merrill Posts Loss on Mortgage Writedowns, Cuts Jobs (Update8)
By Bradley Keoun
April 17 (Bloomberg) -- Merrill Lynch & Co. posted its third straight quarterly loss and said it will cut about 3,000 more jobs after the credit-market seizure forced the investment bank to write down about $6.5 billion of debt.
The smaller-than-estimated charge helped push Merrill shares up as much as 4.7 percent. Analysts including Roger Freeman of Lehman Brothers Holdings Inc. had predicted markdowns of as much as $8 billion. The first-quarter net loss of $1.96 billion, or $2.19 a share, compared with earnings of $2.16 billion, or $2.26, a year earlier, Merrill said.
It's ``not really a disappointment even though they missed on the earnings line,'' said Jeffrey Kleintop, chief market strategist at LPL Financial Group in Boston. ``This is well within the range of expectations.''
Chief Executive Officer John Thain, who joined in December, said today he's ``optimistic'' about the firm's prospects for the year, following a ``more difficult next couple of months.'' His comments echo remarks by Jamie Dimon, his counterpart at JPMorgan Chase & Co., who said yesterday that the credit crisis is more than half over. Richard Fuld, CEO of Lehman Brothers, Goldman Sachs Group Inc. head Lloyd Blankfein and Morgan Stanley chief John Mack have offered similar assessments.
``We are probably not done with the writedowns and there's still concern about the overall economy, but most of the financials are giving an indication that they are getting a handle on it, and things seem to be easing up,'' Peter Dunay, chief investment strategist at Meridian Equity Partners in New York, said in a Bloomberg radio interview.
More Capital
Merrill, the third-biggest U.S. securities firm, gained $1.82, or 4.1 percent, to $46.71 in New York Stock Exchange composite trading.
Thain, 52, has sold more than $12 billion of equity to bolster capital and has overhauled risk-management since the company booked more than $20 billion of credit-market losses racked up by his predecessor, Stan O'Neal. Merrill's stock has fallen almost 50 percent in the past 12 months, trailing larger New York-based rivals Goldman Sachs and Morgan Stanley.
After repeatedly saying that Merrill didn't need to sell more equity to raise capital, Thain said on a conference call today with reporters that he's ``open'' to raising additional capital through a sale of preferred shares. He cited a $6 billion offering that JPMorgan completed yesterday.
Bond Insurance
The comments pleased investors who've been concerned that Thain and other financial-services executives underestimated their capital needs, said James Ellman, president of Seacliff Capital in San Francisco, California, which oversees about $150 million, including an undisclosed number of Merrill shares.
``You cannot have too much capital in the current environment,'' Ellman said. ``If he's saying they might consider, it means they have considered it.''
Merrill's first-quarter writedowns included $2.6 billion to account for the plummeting value of mortgage-related bonds including collateralized debt obligations. The firm also reduced the value of bond insurance contracts by $3 billion, and lowered the value of leveraged loans by $925 million.
The markdowns reflected in Merrill's net loss exclude a $3.1 billion drop in the value of securities held in the firm's U.S. banks. Those declines were classified as ``other comprehensive income,'' an accounting category for securities that Merrill expects to keep until they pay off at maturity.
Revenue Declines
Moody's Investors Service today said it may cut Merrill's credit rating for the second time in six months, citing ``deteriorating conditions in the mortgage market'' and the potential for $6 billion of writedowns in addition to those announced in the past three quarters. Last October, Merrill's rating was lowered one level to A1, the fifth-highest of 10 investment-grade ratings.
Merrill's credit-default swaps have climbed to 166 basis points from 131 basis points at the end of November, according to prices from Phoenix Partners Group and CMA Datavision. The swaps were trading as if the firm had a Moody's credit ranking of Baa3, the lowest investment-grade rating, according to the ratings firm's credit strategy group.
Credit-default swaps, contracts to protect against or speculate on default, pay the buyer face value if a company fails to adhere to its debt agreements.
Merrill's total revenue fell 69 percent to $2.9 billion in the first three months of 2008 from a year earlier. That included a 40 percent drop in investment-banking fees. The company's brokerage, the world's biggest with a network of 16,660 financial advisers, was the only major division to post a gain. Revenue in the unit increased 7 percent to $3.3 billion.
Investor Demands
Fixed-income trading revenue was negative $3.38 billion and equity-trading revenue was $1.88 billion, down from $2.39 billion a year earlier. Debt underwriting generated $231 million in revenue, down 61 percent, while stock underwriting revenue dropped 45 percent to $199 million.
``Merrill Lynch has to show profitability,'' said Ken Crawford, senior portfolio manager at Argent Capital Management in St. Louis, which owns about 160,000 Merrill shares. ``They can't have negative return-on-equity quarters and expect to make investors happy.''
Merrill's first-quarter loss contrasts with earnings at Goldman, Morgan Stanley and Lehman Brothers Holdings Inc. Even Bear Stearns Cos. eked out a profit of $115 million. A cash shortage forced Bear Stearns to sell itself last month to JPMorgan Chase & Co. for $10 a share. Bear Stearns traded at $158 as recently as last April.
Job Cuts
The investment-banking business is grappling with a plunge in fees from advising companies on mergers and stock and bond sales, as CEOs and corporate treasurers hunker down for a recession. Thain also has had to weather the departures of more than a dozen senior executives and traders.
The job cuts announced today are in addition to about 1,000 previously announced. The company eliminated about 650 positions at its San Jose, California-based subprime mortgage lender, First Franklin, and shed others by selling Merrill Lynch Capital, a lender to medium-size companies.
Merrill will record a $350 million charge in the second quarter related to the reductions, which will save an estimated $800 million a year, the firm said.
Under former CEO O'Neal, Merrill paid $1.3 billion for First Franklin in late 2006, just as the U.S. housing market peaked. First Franklin's workforce has been cut to 80 from 2,300.
The company's stock has fallen 17 percent since Thain became CEO Dec. 1, and yields on its 6.4 percent bonds due in August 2017 have widened to 2.8 percentage points over market benchmarks from 2.2 percentage points.
No Buyers
He's been stymied in his plan to liquidate the firm's inventory of collateralized debt obligations, which are securities formed by pooling mortgage bonds and other forms of debt. In January, he said the firm had marked the CDOs down to prices that ``are either saleable or represent good value.''
Today, he said very few of the CDOs have traded.
``There have been some funds put together to buy distressed-type assets, including these, but really none have traded,'' Thain said on the conference call with reporters. ``The buyers are probably waiting to see when is the right time to buy.''
Merrill's CDO holdings dropped to $26.3 billion at the end of March from $30.4 billion at the end of last year, according to the firm's statement, mostly because of writedowns.
Merrill is a passive, minority investor in Bloomberg LP, the parent of Bloomberg News.
To contact the reporter on this story: Bradley Keoun in New York at bkeoun@bloomberg.net.
By Bradley Keoun
April 17 (Bloomberg) -- Merrill Lynch & Co. posted its third straight quarterly loss and said it will cut about 3,000 more jobs after the credit-market seizure forced the investment bank to write down about $6.5 billion of debt.
The smaller-than-estimated charge helped push Merrill shares up as much as 4.7 percent. Analysts including Roger Freeman of Lehman Brothers Holdings Inc. had predicted markdowns of as much as $8 billion. The first-quarter net loss of $1.96 billion, or $2.19 a share, compared with earnings of $2.16 billion, or $2.26, a year earlier, Merrill said.
It's ``not really a disappointment even though they missed on the earnings line,'' said Jeffrey Kleintop, chief market strategist at LPL Financial Group in Boston. ``This is well within the range of expectations.''
Chief Executive Officer John Thain, who joined in December, said today he's ``optimistic'' about the firm's prospects for the year, following a ``more difficult next couple of months.'' His comments echo remarks by Jamie Dimon, his counterpart at JPMorgan Chase & Co., who said yesterday that the credit crisis is more than half over. Richard Fuld, CEO of Lehman Brothers, Goldman Sachs Group Inc. head Lloyd Blankfein and Morgan Stanley chief John Mack have offered similar assessments.
``We are probably not done with the writedowns and there's still concern about the overall economy, but most of the financials are giving an indication that they are getting a handle on it, and things seem to be easing up,'' Peter Dunay, chief investment strategist at Meridian Equity Partners in New York, said in a Bloomberg radio interview.
More Capital
Merrill, the third-biggest U.S. securities firm, gained $1.82, or 4.1 percent, to $46.71 in New York Stock Exchange composite trading.
Thain, 52, has sold more than $12 billion of equity to bolster capital and has overhauled risk-management since the company booked more than $20 billion of credit-market losses racked up by his predecessor, Stan O'Neal. Merrill's stock has fallen almost 50 percent in the past 12 months, trailing larger New York-based rivals Goldman Sachs and Morgan Stanley.
After repeatedly saying that Merrill didn't need to sell more equity to raise capital, Thain said on a conference call today with reporters that he's ``open'' to raising additional capital through a sale of preferred shares. He cited a $6 billion offering that JPMorgan completed yesterday.
Bond Insurance
The comments pleased investors who've been concerned that Thain and other financial-services executives underestimated their capital needs, said James Ellman, president of Seacliff Capital in San Francisco, California, which oversees about $150 million, including an undisclosed number of Merrill shares.
``You cannot have too much capital in the current environment,'' Ellman said. ``If he's saying they might consider, it means they have considered it.''
Merrill's first-quarter writedowns included $2.6 billion to account for the plummeting value of mortgage-related bonds including collateralized debt obligations. The firm also reduced the value of bond insurance contracts by $3 billion, and lowered the value of leveraged loans by $925 million.
The markdowns reflected in Merrill's net loss exclude a $3.1 billion drop in the value of securities held in the firm's U.S. banks. Those declines were classified as ``other comprehensive income,'' an accounting category for securities that Merrill expects to keep until they pay off at maturity.
Revenue Declines
Moody's Investors Service today said it may cut Merrill's credit rating for the second time in six months, citing ``deteriorating conditions in the mortgage market'' and the potential for $6 billion of writedowns in addition to those announced in the past three quarters. Last October, Merrill's rating was lowered one level to A1, the fifth-highest of 10 investment-grade ratings.
Merrill's credit-default swaps have climbed to 166 basis points from 131 basis points at the end of November, according to prices from Phoenix Partners Group and CMA Datavision. The swaps were trading as if the firm had a Moody's credit ranking of Baa3, the lowest investment-grade rating, according to the ratings firm's credit strategy group.
Credit-default swaps, contracts to protect against or speculate on default, pay the buyer face value if a company fails to adhere to its debt agreements.
Merrill's total revenue fell 69 percent to $2.9 billion in the first three months of 2008 from a year earlier. That included a 40 percent drop in investment-banking fees. The company's brokerage, the world's biggest with a network of 16,660 financial advisers, was the only major division to post a gain. Revenue in the unit increased 7 percent to $3.3 billion.
Investor Demands
Fixed-income trading revenue was negative $3.38 billion and equity-trading revenue was $1.88 billion, down from $2.39 billion a year earlier. Debt underwriting generated $231 million in revenue, down 61 percent, while stock underwriting revenue dropped 45 percent to $199 million.
``Merrill Lynch has to show profitability,'' said Ken Crawford, senior portfolio manager at Argent Capital Management in St. Louis, which owns about 160,000 Merrill shares. ``They can't have negative return-on-equity quarters and expect to make investors happy.''
Merrill's first-quarter loss contrasts with earnings at Goldman, Morgan Stanley and Lehman Brothers Holdings Inc. Even Bear Stearns Cos. eked out a profit of $115 million. A cash shortage forced Bear Stearns to sell itself last month to JPMorgan Chase & Co. for $10 a share. Bear Stearns traded at $158 as recently as last April.
Job Cuts
The investment-banking business is grappling with a plunge in fees from advising companies on mergers and stock and bond sales, as CEOs and corporate treasurers hunker down for a recession. Thain also has had to weather the departures of more than a dozen senior executives and traders.
The job cuts announced today are in addition to about 1,000 previously announced. The company eliminated about 650 positions at its San Jose, California-based subprime mortgage lender, First Franklin, and shed others by selling Merrill Lynch Capital, a lender to medium-size companies.
Merrill will record a $350 million charge in the second quarter related to the reductions, which will save an estimated $800 million a year, the firm said.
Under former CEO O'Neal, Merrill paid $1.3 billion for First Franklin in late 2006, just as the U.S. housing market peaked. First Franklin's workforce has been cut to 80 from 2,300.
The company's stock has fallen 17 percent since Thain became CEO Dec. 1, and yields on its 6.4 percent bonds due in August 2017 have widened to 2.8 percentage points over market benchmarks from 2.2 percentage points.
No Buyers
He's been stymied in his plan to liquidate the firm's inventory of collateralized debt obligations, which are securities formed by pooling mortgage bonds and other forms of debt. In January, he said the firm had marked the CDOs down to prices that ``are either saleable or represent good value.''
Today, he said very few of the CDOs have traded.
``There have been some funds put together to buy distressed-type assets, including these, but really none have traded,'' Thain said on the conference call with reporters. ``The buyers are probably waiting to see when is the right time to buy.''
Merrill's CDO holdings dropped to $26.3 billion at the end of March from $30.4 billion at the end of last year, according to the firm's statement, mostly because of writedowns.
Merrill is a passive, minority investor in Bloomberg LP, the parent of Bloomberg News.
To contact the reporter on this story: Bradley Keoun in New York at bkeoun@bloomberg.net.
9:14 am - FKLI oversold last nite ! Cannot short yet today !
Short at higher level ! For the time being stay aside. There were no follow thru on the short side.
If wish to short, short around 1262-1265.0. Support at 1252.0
Thursday, April 17, 2008
5:21 pm - FKLI selldown in the last min @ 1251.0
Think to short when DJIA open higher tomorrow ! We are out of our LONG position at 1254-1257.
4:19 am - When FKLI is weak in the morning, it will be strong in the afternoon.
This morning, we had a selldown and the short covering buy back their position around 4 pm.
4:02 pm - FKLI is staging a mild recovery back from low 1255.0
We shud exit all LONG position and think to short at higher level.
9:28 am - DJIA is very strong and closed high last nite + 256.8
If we get momentum tonite, DJIA wud continue to break 12,700/12,800.
Wednesday, April 16, 2008
5:23 pm - FKLI closed above 1260 @ 1260.5
Let's see how DJIA wud react tonite. At 5:23 pm, DJIA futures is +53 pointing to a higher opening (I believe the closing of DJIA is more important)
3:58 pm - FKLI selldown for the 2nd time after it first turn uptrend.
This is what I am looking after the seller pushes and wash out the long position. If the FKLI can close @ 1258/1260, the uptrend is still intact.
9;26 am - FKLI gap up due to better closing by DJIA.
If FKLI cannot hold above 1254, this is a good day for LONG position. LONG position is on. Stop @ 1243.5.
9:18 am - DJIA has a doji with average volume last nite.
DJIA 1st up day over 4 down day. The volume is insignificant meaning, the probability for DJIA to go up tomorrow is 50:50.
Tuesday, April 15, 2008
11:02 am - FKLI washes out long position trader @ 1234 and washes short trader @ 1243
But it look like FKLI wants to go higher. KLCI is still up +7.08 pts.
9:40 am - Update : My newsletter recommends LONG position for FCPO on 3540.
FCPO closed 3595 (+141) with soy oil closes high last nite. We wud see higher FCPO + volatility as today it is inventory report day from SGS/ITS report.
9:19 am - FKLI trying to break higher to 1254.0
It must stay above 1239 to remain bullish for the morning.
Monday, April 14, 2008
5:36 pm - FKLI closed lower with -13.36 pts down.
FKLI market may move sideway or down from here onwards.
9:53 am - DJIA has fallen -2.0 % with heavy volume.
This is not good as it may signify more down days to come.
9:32 am - FKLI gap down due to DJIA -250 pts.
However, our FKLI market has seen come up due to short covering their short position. So they buy in.
Saturday, April 12, 2008
8:31 am : US Stocks fall sharply following GE results
NEW YORK (AP) - Wall Street stumbled Friday after a disappointingfirst-quarter report from General Electric Co. surprised the market and stokedconcern about the health of both corporate profits and the wider economy. Themajor indexes fell more than 2 percent, with the Dow Jones industrials giving upmore than 250 points. A weaker-than-expected reading showing consumer confidence at a 26-year lowsubdued any positive sentiment. GE, which is regarded as a bellwether of big business, said itsfinancial-services divisions have been challenged by the slowing U.S. economyand difficult capital markets. The company, whose orbit extends intoentertainment, consumer and industrial manufacturing, finance and health care,also lowered its projections for the entire year. The conglomerate is one of the early companies to post first-quarter resultsand its shortfall stirred worries that others still to report will paint asimilarly dreary picture. The smaller-than-expected profits from GE injectedanxiety into a market that earlier this week saw disappointing results fromaluminum producer Alcoa Inc. and a warning from chip maker Advanced MicroDevices Inc. "The market really is focusing on the extent to which problems in the creditmarkets are spilling over into the real economy," said Brian Gendreau,investment strategist for ING Investment Management in New York. According to preliminary calculations, the Dow fell 256.56, or 2.04 percent,to 12,325.42. GE was by far the steepest decliner among the 30 stocks thatcomprise the Dow. Its shares dropped $4.70, or 13 percent, to $32.05. Broader stock indicators also registered sizable losses. The Standard &Poor's 500 index fell 27.72, or 2.04 percent, to 1,332.83, and the Nasdaqcomposite index fell 61.46, or 2.6 percent, to 2,290.24. The Russell 2000 index of smaller companies fell 19.26, or 2.72 percent, to688.16. Declining issues outnumbered advancers by about 4 to 1 on the New York StockExchange, where volume came to 1.26 billion shares compared with 1.28 billionshares traded Thursday. Friday's pullback followed a comparatively quiet week in which the majorindexes showed modest adjustments. Stocks were little changed Monday, declinedTuesday following profit warnings from names like United Parcel Service Inc. andposted moderate gains Thursday following a drop in unemployment claims. For the week, the Dow lost 2.3 percent, the S&P 500 declined 2.7 percent andthe technology-heavy Nasdaq gave up 3.4 percent. Bond prices rose Friday as investors fearful of a slowing economy took updefensive positions in government debt. The yield on the benchmark 10-yearTreasury note, which moves opposite its price, fell to 3.46 percent from 3.55percent late Thursday. Light, sweet crude rose 3 cents to settle at $110.14 per barrel on the NewYork Mercantile Exchange. The dollar was mixed against other major currencies,while gold prices fell. A snapshot of a gloomy consumer added to recent reports showing Americans'confidence in the economy at new lows, dragged down by worries about mountingjob losses, record-high home foreclosures and zooming energy prices. Investors fear that nervous shoppers will be less willing to reach intotheir wallets -- an unwelcome prospect as consumer spending accounts for about70 percent of U.S. economic activity. The preliminary Reuters/University of Michigan index of consumer sentimentfell to 63.2 for April -- its lowest point since 1982 -- from 69.5 in March,according to Dow Jones Newswires. Economists polled by Thomson/IFR had, onaverage, expected a reading of 68. "I think rationality is coming into the market," said Alan Lancz, directorat investment research group LanczGlobal in Toledo, Ohio. "Every time we move upto test the upper end of the range, something seems to happen." He noted that even if the most onerous times for the financial sector havepassed, as some market watchers have said, the effects of a tight credit marketwill be felt for some time. Lancz said GE's results offer new evidence thatforecasts for corporate profits in general remain too rosy given the troubleshitting businesses. "They're facing a lot of headwinds that I don't think a lot of analysts haveput into their numbers," he said. Lancz contends that the Federal Reserve's moves last month to head off thecollapse of Bear Stearns Cos. no doubt helped stabilize Wall Street -- but mighthave led some investors to become complacent about the scope of the troublesstill facing the economy. Linda Duessel, a market strategist at Federated Investors in Pittsburgh,noted that GE is known for its dependability in meeting Wall Street's forecasts,and the nearly 6 percent drop in its profits suggest that other first-quarterresults next week could reveal weakness well beyond the financial industry. "In the fourth quarter of last year the financials continued to tell us badnews and the rest of the sectors hung in extremely well," she said, adding thatinvestors are now worried the weakness has spread. "That company is known for being kind of a window to the market and theeconomy," she said of GE. In other corporate news, Frontier Airlines Holdings Inc. filed for Chapter11 bankruptcy protection. Unlike the three other airlines that have filed forbankruptcy in as many weeks, the carrier plans to keep operating while itreorganizes. Frontier ended down $1.09, or 69 percent, at 48 cents. Overseas, Japan's Nikkei stock average rose 2.92 percent. Britain's FTSE 100closed down 1.17 percent, Germany's DAX index fell 1.50 percent, and France'sCAC-40 finished off 1.27 percent. Copyright 2008 Associated Press. All rights reserved. This material may not be
Friday, April 11, 2008
11:33 am - FKLI has broken its support at 1253 and tries to build a base 1247/1248
If this base is successful, FKLI may go higher.
10:57 am - FKLI is moving sideway !
Long is still on ! After gapping up, FKLI move sideway but did not close the gap below - which is good.
9:15 am - FKLI is ready to go higher.
My newsletter recommends to go LONG at 1260. Market touches 1260 this morning. Let's see if this can break.
Thursday, April 10, 2008
5:18 pm - FKLI close 1243.5 due to last min selldown from 1249.0
If DJIA closes lower tonite, we wud have lower - FKLI to gap down. If the gap is filled, FKLI is heading for another bullish day.4:38 pm - FKLI is certainly bullish and this time is the long position to take profit
So you wud see weaker FKLI at this moment.
Some clients already long based on their indicators.
Daily chart has strength detected ! LONG is on.
However, our intraday TG has no buy signal.
9:54 am - FKLI wants to go higher !
It may form a double top at 1228 and once confirmed, you can short. Else FKLI can break above 1228.
9:18 am - FKLI is resilience while the regional market is weaker today.
The FKLI is likely to range bound.
Wednesday, April 09, 2008
5:55 pm - Bill and myself will be doing a preview workshop on April 10 & April 13, 2008
If you are interested to come, pls contact Dolly at 03 4252 4149.
5:07 pm - FKLI forms a saucer in its hrly chart.
It looks like it wants to go higher. For short, stop loss at 1228.
For long, go long at this stage.
12:32 noon - After hitting new high at 1228, FKLI came down !
FKLI is moving sideway and wash all the short seller stop and KLCI is heading lower. KLCI closes for lunch +2.07 pts only.
11:05 am - FKLI is thrusting upward
Lot of short seller was stopped out at 1227/1228.
Cash is -2 pts discount to FKLI. Cash is still weak.
Cash is -2 pts discount to FKLI. Cash is still weak.
9:22 am - FKLI is ready to go up !
FKLI has broken up the 1218 for the 3rd time and see if it can sustain above 1218.0
(Cannot upload chart)
There is a lot of short covering today ! Those ppl who shorted yesterday have to cut loss.
(Cannot upload chart)
There is a lot of short covering today ! Those ppl who shorted yesterday have to cut loss.
Tuesday, April 08, 2008
9:43 am - DJIA is ready to move higher based on the qtrly profit reports tonite.
Notice the lower high for each movement of DJIA. It is moving higher.
9:40 am - FKLI gap down and washes the long positon
Yesterday before closing, it move higher to wash the short seller. Now it is ready to go long.
Think of going long.
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