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.