5:17 pm - FKLI gone LONG but have to cut at 872 as FKLI broke down due to DJIA futures !

2:35 pm - FKLI is pushing up the supply and building another support base at 878/880

11:56 am - FKLI moving sideway - Long if break 880 or short if break 872

9:09 am - FKLI gap up but weaker as time passes !

9 am - DJIA closed higher on higher volume !

It is critical DJIA today to close higher or not break the 8188 support level.

5:23 pm - FKLI break down after lunch by gaping down !

9:15 am - FKLI gap down but started to move back up. Notice the double top at the top !

I expect FKLI to move down unless it break above the double top at 890/891.

5:10 pm - FKLI break higher to close above 888.

4:16 pm - FKLI break down but moving sideway now !

3:26 pm - Market Outlook by Bill Wermine !

Dear Traders ,

Carving out a bottom

In late 1974 when the Dow Jones was below 600 and the air was thick with doom, Warren Buffet in an interview with Forbes magazine said “ I feel like an oversexed man in a harem. This is the time to start investing.” Within months the greatest rally in history began with the Dow running almost 450 points in a bit over a year.

This was a percentage return of over 75 % Buffet also said in the interview “ You pay a very high price in the stock market for a cheery consensus.” Some of my clients said there are too many question marks about the near future, wouldn’t it be better to wait until things clear up a bit ?

You know the prose: “Maintain buying reserves until current uncertainties are resolved,” Before reaching for that crutch, face up to two unpleasant facts:

The future is never clear, you pay a very high price in the stock market for a cheery consensus. Uncertainty actually is the friend of the buyer of long term values. Justin Mamis, a former partner specialist in the NYSE wrote a book in 1982 , How to Buy, an Insider’s Guide to Making Money in the Stockmarket. The best opportunity he said is after a selling climax. A true climax he said must be preceeded by a prolonged and steady decline, accompanied by deep rooted gloom and a sense of doom.

Finally, investors who have been tormented by the down trend but have held on decide to disgorge their holdings because they have become convinced that prices can only become worse. Thus in addition to such a prior extensive decline, stocks have to embark abruptly in a form of free fall. Often it is sparked by a specific financial crises, such as a major bankruptcy, and then the dumping of stocks seems to pick up momentum. A specialist in the NYSE is a market maker and is obligated to buy in a market collapse to maintain an orderly market. Their average earnings each year is in seven figures and they profit by exploiting the human emotion of fear.

These fellows become rich by being smart like Warren Buffet. We trade in the now and take advantage of what is offered. In my opinion we are in a stage 1 accumulation phase. We need to deal in shares moving into stage 2 and confirmed by volume. Risk is relatively low at this point. Use your Advanced TAVA Metastock filter to find such shares.

One of graduates, JL Tan shared this powerful clip with me. Listen to the uplifting inspirational words and music. It applies to the current market and life itself.

Have a good week

Bill

3:20 pm - FKLI break down below 50 MA before finding support at 878

11:58 am - FKLI has formed double at 863.0. Notice the volume at this double bottom.

9:55 am - FKLI trying to break higher. Closing the gap !

9:28 am - FKLI gap down due to DJIA -3.8% loss !

When market gap down, think to go LONG !

7:55 am - DJIA on a weekly basis is set to fall some more !

7:52 am - US retail sales in record fall, but sentiment up

WRAPUP 4-US retail sales in record fall, but sentiment up By Alister Bull WASHINGTON, Nov 14 (Reuters) - Sales at U.S. retailers suffered a recorddecline in October as fears of recession sapped spending, but part of the dropwas due to slumping gasoline prices which helped buoy consumer confidence. The Commerce Department said on Friday that retail sales slumped 2.8percent in October to a seasonally adjusted $363.7 billion, the largest declinesince the department's current methodology was adopted in 1992, as mountingunemployment hit shoppers' appetites. A separate Reuters/University of Michigan November survey of consumersshowed that confidence unexpectedly rebounded from a record October drop astumbling gas prices offset worries about the economy. While lower gas prices were welcome, declines in a broad number of retailsales categories showed consumers were still on the defensive. "What you are seeing now is the turmoil in the credit and funding marketsplaying out into the consumer sector," said Kevin Flanagan, fixed incomestrategist, global wealth management at Morgan Stanley in Purchase, New York. Consumer spending is a crucial driver of U.S. growth and stocks fellsharply, with the Dow Jones industrial average ending 337.94 points, or 3.82percent lower at 8,497.31. The dollar rose, aided from its role as a safe haven in a deterioratingglobal investment climate, while U.S. Treasury notes advanced in price for thesame reason and because a weaker economy theoretically favors such fixed incomeassets. Economists polled by Reuters forecast a 2.0 percent fall in Octoberretail sales as the escalating financial crisis took a toll on consumers. Retailsales last month were down 4.1 percent from a year ago. Sales excluding autos fell a record 2.2 percent in October versus aforecast of a 1.2 percent decline. Lower gasoline prices, as crude oil retreated sharply from a July peakaround $147 a barrel, helped depress sales at gas stations by a record 12.7percent in October. As a result, a closely watched core measure of retail salesexcluding autos and gasoline fell 0.5 percent in October. "Take out cars and gas, it's a drop of half a percent. It's not good, butit's not horrific. This could have been worse; it's encouraging that it wasn't,"said David Resler, chief economist at Nomura Securities in New York. The sharp drop in gasoline station sales may also have reflected fewermiles driven by Americans last month. The Reuters/University of Michigan Surveys of Consumers said itsconfidence index edged up to 57.9 in November from 57.6 in October. Despite therise, sentiment remains at depressed levels, with the index below the lowestlevels hit during the depths plumbed during the last two recessions. "Lower gas prices and sizable discounts at retailers helped to slightlyimprove consumers' assessments of current economic conditions, while higherunemployment and a deepening recession dimmed their expectations for futuregains," the Surveys of Consumers said in the report. "You might have hoped, say gasoline was way, way down in price, thatmight free up money to spend on other stuff. But that didn't happen, peoplestill spent less on other stuff. So that's not good," said Nigel Gault, chiefU.S. economist at Global Insight in Lexington, Massachusetts. Lakshman Achuthan, managing director at the Economic Cycle ResearchInstitute, a New York-based independent forecasting group, put it more bluntly:"Not only is no economic recovery on the horizon, but the economy is falling offa cliff at its fastest pace in at least six decades. Individual car makers have reported a collapse in sales sincemid-September after auto-loan terms tightened sharply in the aftermath ofinvestment bank Lehman Brothers's failure. The Commerce Department said motor vehicle and parts sales slide 5.5percent in October after a 4.8 percent September fall. October's performance forthe category was the weakest since August 2005, when car sales were off 10.3percent. Majority leader Sen. Harry Reid, a Democrat from Nevada, said he "plansto press forward" with emergency aid to American automakers and will begindebate on Monday of a $25 billion bailout. It was not clear if there wassufficient backing from Republicans to deliver the emergency aid. General Motors Corp, Ford Motor Co and Chrysler LLC are furiouslylobbying for $25 billion in immediate bailout money to help them survive theindustry's worst financial crisis. A report from the Labor Department showed U.S. import prices posted thelargest monthly drop since 1988 in October as the cost of imported oil slid. Separate Commerce Department data showed that stocks of unsold goods atU.S. businesses unexpectedly fell a seasonally adjusted 0.2 percent inSeptember.

3:37 pm - FKLI continue to move sideway !

Short sellers will be covering their positions soon as they do not wish to carry over the weekend.

9:38 am - DJIA chart has strength with high volume !

9:26 am - FKLI gap up due DJIA higher closing last nite !

4:33 pm - FKLI closing higher as short seller are taking profits !