5:23 pm - FKLI break lower to 874.5 but closed at 879

Happy New Year 2009 !

3:19 pm - FKLI break down after lunch touching 50 MA as support.

10:57 am - FKLI is congesting sideway !

9:14 am - FKLI gap up due to stronger DJIA closer last nite !

With Nikkei's closing today and Kospi opening late, KLCI will be thinly traded today !

5:43 pm - FKLI Jan break above 886

3:47 pm - FKLI is holding up nicely !

1:16 pm - Market Outlook by Bill Wermine

Dear Traders,

Below is my outlook for the stock market in 2009. It will be published in Malaysian Business in their end Jan edition:

By the way, we plan a Traders Club meeting on Sat 7 Feb at 10 AM at CIMB auditorium and plan to have the head of Technical analysis of CIMB (to be confirmed) who will give his 2009 stock market outlook.

Please let me know if you wish to attend Attached is the latest valuation of Man Essential, the recent launch. (30 Nov 2008 valuation)

How to Minimize your Costs and Risks while riding the 2009 stock market Bull

Below is a prophetic chart from Deutsche Bank research. It shows that stock markets bottom out a little more than half-way through recessions.

Based on this chart, I expect that 2009 will likely be a much better year for the markets than the year we have just endured. From this chart it appears that we are more than half way through the recession and probability is high that we will soon have a market recovery.

The Fuel to drive the Bull

We are on the verge of the Obama administration “stimulating” the US economy through public works and infrastructure projects, likely to the tune of nearly $1 trillion.
Obama’s program is likely to stimulate the economy and invigorate world markets in the near term.
The Federal Reserve has also signaled that it will do everything within its power to stimulate the economy. In the eyes of central planners, desperate times call for desperate measures. And the Fed is clearly desperate.
With their latest policy statement, issued on 22 December 2008, it is clear that the monetary helicopters have arrived. Not only have short term interest rates been cut to nearly zero, the Fed has also stated that it will resort to “alternative” means to juice the economy.
Have a prosporous New Year,
Bill

12:59 pm - FKLI Jan 09 contract - Facing resistance @ 886

It looks to break above 886 for the 3rd time.

9:49 pm - DJIA is treading sideway !

9:24 am - FKLI is breaking higher above 880

This is a break up !

9:15 am - Wall St. faces record losses in last week of 2008

NEW YORK (AP) - Investors are preparing to close out the last threetrading days of 2008 with Wall Street's worst performance since Herbert Hooverwas president. The ongoing recession and global economic shock pummeled stocks this year,with the Dow Jones industrial average slumping 36.2 percent. That's the biggestdrop since 1931 when the Great Depression sent stocks reeling 40.6 percent. The Standard & Poor's 500 index is set to record the biggest drop since itscreation in 1957. The index of America's biggest companies is down 40.9 percentfor the year. With these statistics ready to play out this week, it is little wonder whyinvestors are all too happy to close the books on 2008. Analysts are alreadylooking toward January as a crucial period for the market as it tries to recoversome of the $7.3 trillion wiped from the Dow Jones Wilshire 5000 index, thebroadest measure of U.S. stocks. "It is hard to gauge a recovery because there's so many things out therethat are interactive with each other," said Scott Fullman, director ofderivatives investment strategy for WJB Capital Group in New York. "Nothing isin a vacuum. Anybody who is managing money has to be on the cautious side for atleast the first six months of 2009." He said many analysts are jumping past this week and focusing on next month,especially with Barack Obama set to be sworn in as president on Jan. 20. Thereis hope that the new administration will deliver another stimulus package, whichalong with December's interest rate cuts, might help quell the financial crisis. Trading is expected to remain volatile with many market participants on thesidelines during the holiday-shortened week, but that doesn't mean investorswon't be kept busy. With no Santa Claus rally last week, economic data slatedfor the coming days could sway the market's mood going into 2009. Investors will be awaiting details about how retailers fared in thepost-Christmas sales period, especially since consumer spending drives more thantwo-thirds of the U.S. economy. The main question is if bargain prices at themalls will be enough to rescue retailers from a bleak holiday shopping season. Meanwhile, another gauge of how Americans feel about spending money will bereleased on Tuesday. The Conference Board will issue its December index ofconsumer confidence, which is expected to rise to a reading of 45.2 for thismonth, up slightly from 44.9 in November. The Labor Department will report on weekly jobless claims Wednesday, after a26-year high of 586,000 initial filings in the week ended Dec. 20. But the most anticipated economic data will be delivered Friday wheninvestors get a fresh reading on the manufacturing sector. The Institute forSupply Management releases its December survey of purchasing managers. The index is expected to show a reading of 35.5, down from November's 36.2,according to economists polled by Thomson Reuters. A reading above 50 points toexpansion, while a reading below 50 shows a contraction. There is little in the way of corporate news slated. Though, the final weekof the year -- when volume is slow and many money managers are on vacation -- isoften a time when companies slip through lower quarterly forecasts. Investors were still waiting word if GMAC Financial Services, the financingarm of General Motors Corp., will be eligible for a government bailout. GMACreceived the Federal Reserve's approval to become a bank holding company lastweek, but that was contingent on putting into place a complicateddebt-for-equity exchange by 11:59 p.m. EST Friday. That deadline passed with no word from the company. Analysts have speculatedthat if GMAC doesn't obtain financial help it would have to file for bankruptcyprotection or shut down, which would be a serious blow to parent GM's ownchances for survival. Both General Motors and Chrysler LLC on Monday will receive the first partof the $13.4 billion in emergency loans from the government. Each will receiveabout $4 billion, then receive the second payment of $5.4 billion on Jan. 16. GMgets a third installment of $4 billion on Feb. 17. Ford Motor Co. did not participate in the government rescue plan. IndyMac Bank, one of the most high-profile financial institutions to failbecause of the financial crisis, might be close to getting a new owner. Thebuyers include private equity firms J.C. Flowers & Co. and Dune CapitalManagement, according to The New York Times, which cited unidentified peopleclose to the matter. The proposed sale could be announced by Monday morning, the report said. Meanwhile, Kuwait's government on Sunday scrapped a $17.4 billion jointventure with U.S. petrochemical giant Dow Chemical Co. after criticism fromlawmakers that could have led to a political crisis in this small oil-richstate. The Cabinet, in a statement carried by the state-owned Kuwait News Agency,said the venture, was "very risky" in light of the global financial crisis andlow oil prices. Dow Chemical said it was "extremely disappointed" with theKuwaiti government's decision and was evaluating its options under thejoint-venture agreement.

4:05 pm - I am on leave until 30 Dec 2008.

Happy New Year !

9:02 am - DJIA is testing 8350 level but not breaking it yet !

It is likely to move sideway until it break 8350 level.

9:01 am - Merry Xmas and Happy New Year to All !

Next week, I will be back in my CIMB's office in Commerce Square. We will do our live trading in the first week of 2009.

9:11 am - DJIA is testing on low volume. If it does close the low 8500

It may just bounced up !

9:10 am - Dow falls for 5th straight session on grim data

NEW YORK (AP) - Wall Street pulled back again Tuesday in quiet trading aheadof the holiday, as another round of reports showed further deterioration in thehousing market and the broader economy. The Dow Jones industrial average finished lower for the fifth straight day,falling 100 points. Tuesday's gloomy data was hardly surprising to jaded investors. And tradingvolume is light this week, which tends to skew the market's movements. "It is a very quiet news week, and much of it has already been priced intothe market," said Ryan Larson, head of equity trading at Voyageur AssetManagement. The reports offered Wall Street no reason to be upbeat, however, and theconcern remains that the economy will keep weakening well into the new year. The Commerce Department reiterated Tuesday that third-quarter gross domesticproduct, a measure of the economy that tallies the value of goods and services,fell at an annual rate of 0.5 percent. The government also said sales of new homes fell in November to the slowestpace in nearly 18 years, while prices of new homes dropped by the biggest amountin eight months. Sales of existing homes keep dropping as well. The National Association ofRealtors said existing home sales fell 8.6 percent to an annual rate of 4.49million in November from a downwardly revised pace of 4.91 million in October.That was more than analysts expected. According to preliminary calculations, the Dow Jones industrial average fell100.28, or 1.18 percent, to 8,419.49. Broader indexes also declined. The Standard & Poor's 500 index shed 8.48, or0.97 percent, to 863.15. The Nasdaq composite index fell 10.81, or 0.71 percent,to 1,513.24. The Russell 2000 index of smaller companies fell 6.43, or 1.35percent, to 468.64.

9:01 am - FKLI gap down due to DJIA overnite losses !

IF FKLI cannot break above 878, we wud see lower FKLI. The window dressing is almost over !

5:12 pm - Short covering push FKLI back to close higher !

9:51 am - DJIA has doji after selling down earlier !

Some sign of strength is coming !

9:43 am - FKLI is closing and edging lower !