FKLI closed with +6.5 to 1017.5. Oct 08 contract closed higher at 1032.
Tuesday, September 30, 2008
11:15 am - Market Report on DJIA -777 plunge by Bill Wermine !
Dear Traders,
There has been threats by George Bush that if the congress does does not pass the bailout bill the world financial system will collapse. Bush used the same tactics to scare the public and congress to authorize the invason of Iraq. His action was based on lies as Iraq was never a threat to the US and had nothing to do with 9-11 and had no weapons of mass distructions.
Bush with his chronies Bernenke and Paulson are lying to the public again by using fear and panic to force the congress to agree to a plan which is ill conceived. They have got the media behind them to brainwash the public.
This plan is not in the public's interest but in the interest of the super rich, the well connected and the banking establishment. The insiders will engineer a stock market panic to scare the public into agreeing with their plan. The super rich insiders will buy the shares sold by the sheep who are caught up in fear and doom and gloom
Do not be fooled- never sell a low. Smart money will take the other side of your trade.
Michael Moore who is a thorn in the side of Bush and his band of crooks and thieves wrote an interesting analysis which I share below.
Also, I am happy to be living in Malaysia where the markets and the economy are run more prudently than in the US, UK and Europe. Malaysian banks are not caught up in the mortgage sub prime collapse which was engineered by the investment banks on Wall St to enrich the priviledged few.
Continue to hold quality KLSE shares and do not panic !
Keep your cool
Bill
Let me cut to the chase. The biggest robbery in the history of this country is taking place as you read this. Though no guns are being used, 300 million hostages are being taken. Make no mistake about it: After stealing a half trillion dollars to line the pockets of their war-profiteering backers for the past five years, after lining the pockets of their fellow oilmen to the tune of over a hundred billion dollars in just the last two years, Bush and his cronies -- who must soon vacate the White House -- are looting the U.S. Treasury of every dollar they can grab. They are swiping as much of the silverware as they can on their way out the door.
No matter what they say, no matter how many scare words they use, they are up to their old tricks of creating fear and confusion in order to make and keep themselves and the upper one percent filthy rich. Just read the first four paragraphs of the lead story in last Monday's New York Times and you can see what the real deal is:
"Even as policy makers worked on details of a $700 billion bailout of the financial industry, Wall Street began looking for ways to profit from it. "Financial firms were lobbying to have all manner of troubled investments covered, not just those related to mortgages. "At the same time, investment firms were jockeying to oversee all the assets that Treasury plans to take off the books of financial institutions, a role that could earn them hundreds of millions of dollars a year in fees. "Nobody wants to be left out of Treasury's proposal to buy up bad assets of financial institutions."
Unbelievable. Wall Street and its backers created this mess and now they are going to clean up like bandits. Even Rudy Giuliani is lobbying for his firm to be hired (and paid) to "consult" in the bailout.
The problem is, nobody truly knows what this "collapse" is all about. Even Treasury Secretary Paulson admitted he doesn't know the exact amount that is needed (he just picked the $700 billion number out of his head!). The head of the congressional budget office said he can't figure it out nor can he explain it to anyone.
And yet, they are screeching about how the end is near! Panic! Recession! The Great Depression! Y2K! Bird flu! Killer bees! We must pass the bailout bill today!! The sky is falling! The sky is falling!
Falling for whom? NOTHING in this "bailout" package will lower the price of the gas you have to put in your car to get to work. NOTHING in this bill will protect you from losing your home. NOTHING in this bill will give you health insurance.
Health insurance? Mike, why are you bringing this up? What's this got to do with the Wall Street collapse?
It has everything to do with it. This so-called "collapse" was triggered by the massive defaulting and foreclosures going on with people's home mortgages. Do you know why so many Americans are losing their homes? To hear the Republicans describe it, it's because too many working class idiots were given mortgages that they really couldn't afford. Here's the truth: The number one cause of people declaring bankruptcy is because of medical bills. Let me state this simply: If we had had universal health coverage, this mortgage "crisis" may never have happened.
This bailout's mission is to protect the obscene amount of wealth that has been accumulated in the last eight years. It's to protect the top shareholders who own and control corporate America. It's to make sure their yachts and mansions and "way of life" go uninterrupted while the rest of America suffers and struggles to pay the bills. Let the rich suffer for once. Let them pay for the bailout. We are spending 400 million dollars a day on the war in Iraq. Let them end the war immediately and save us all another half-trillion dollars!
I have to stop writing this and you have to stop reading it. They are staging a financial coup this morning in our country. They are hoping Congress will act fast before they stop to think, before we have a chance to stop them ourselves. So stop reading this and do something -- NOW! Here's what you can do immediately:
1. Call or e-mail Senator Obama. Tell him he does not need to be sitting there trying to help prop up Bush and Cheney and the mess they've made. Tell him we know he has the smarts to slow this thing down and figure out what's the best route to take. Tell him the rich have to pay for whatever help is offered. Use the leverage we have now to insist on a moratorium on home foreclosures, to insist on a move to universal health coverage, and tell him that we the people need to be in charge of the economic decisions that affect our lives, not the barons of Wall Street.
2. Take to the streets. Participate in one of the hundreds of quickly-called demonstrations that are taking place all over the country (especially those near Wall Street and DC).
3. Call your Representative in Congress and your Senators. (click here to find their phone numbers). Tell them what you told Senator Obama.
When you screw up in life, there is hell to pay. Each and every one of you reading this knows that basic lesson and has paid the consequences of your actions at some point. In this great democracy, we cannot let there be one set of rules for the vast majority of hard-working citizens, and another set of rules for the elite, who, when they screw up, are handed one more gift on a silver platter. No more! Not again!
Yours,Michael MooreMMFlint@aol.comMichaelMoore.com
P.S. Having read further the details of this bailout bill, you need to know you are being lied to. They talk about how they will prevent golden parachutes. It says NOTHING about what these executives and fat cats will make in SALARY. According to Rep. Brad Sherman of California, these top managers will continue to receive million-dollar-a-month paychecks under this new bill. There is no direct ownership given to the American people for the money being handed over. Foreign banks and investors will be allowed to receive billion-dollar handouts. A large chunk of this $700 billion is going to be given directly to Chinese and Middle Eastern banks. There is NO guarantee of ever seeing that money again.
P.P.S. From talking to people I know in DC, they say the reason so many Dems are behind this is because Wall Street this weekend put a gun to their heads and said either turn over the $700 billion or the first thing we'll start blowing up are the pension funds and 401(k)s of your middle class constituents. The Dems are scared they may make good on their threat. But this is not the time to back down or act like the typical Democrat we have witnessed for the last eight years. The Dems handed a stolen election over to Bush. The Dems gave Bush the votes he needed to invade a sovereign country. Once they took over Congress in 2007, they refused to pull the plug on the war. And now they have been cowered into being accomplices in the crime of the century. You have to call them now and say "NO!" If we let them do this, just imagine how hard it will be to get anything good done when President Obama is in the White House. THESE DEMOCRATS ARE ONLY AS STRONG AS THE BACKBONE WE GIVE THEM. CALL CONGRESS NOW.
There has been threats by George Bush that if the congress does does not pass the bailout bill the world financial system will collapse. Bush used the same tactics to scare the public and congress to authorize the invason of Iraq. His action was based on lies as Iraq was never a threat to the US and had nothing to do with 9-11 and had no weapons of mass distructions.
Bush with his chronies Bernenke and Paulson are lying to the public again by using fear and panic to force the congress to agree to a plan which is ill conceived. They have got the media behind them to brainwash the public.
This plan is not in the public's interest but in the interest of the super rich, the well connected and the banking establishment. The insiders will engineer a stock market panic to scare the public into agreeing with their plan. The super rich insiders will buy the shares sold by the sheep who are caught up in fear and doom and gloom
Do not be fooled- never sell a low. Smart money will take the other side of your trade.
Michael Moore who is a thorn in the side of Bush and his band of crooks and thieves wrote an interesting analysis which I share below.
Also, I am happy to be living in Malaysia where the markets and the economy are run more prudently than in the US, UK and Europe. Malaysian banks are not caught up in the mortgage sub prime collapse which was engineered by the investment banks on Wall St to enrich the priviledged few.
Continue to hold quality KLSE shares and do not panic !
Keep your cool
Bill
Let me cut to the chase. The biggest robbery in the history of this country is taking place as you read this. Though no guns are being used, 300 million hostages are being taken. Make no mistake about it: After stealing a half trillion dollars to line the pockets of their war-profiteering backers for the past five years, after lining the pockets of their fellow oilmen to the tune of over a hundred billion dollars in just the last two years, Bush and his cronies -- who must soon vacate the White House -- are looting the U.S. Treasury of every dollar they can grab. They are swiping as much of the silverware as they can on their way out the door.
No matter what they say, no matter how many scare words they use, they are up to their old tricks of creating fear and confusion in order to make and keep themselves and the upper one percent filthy rich. Just read the first four paragraphs of the lead story in last Monday's New York Times and you can see what the real deal is:
"Even as policy makers worked on details of a $700 billion bailout of the financial industry, Wall Street began looking for ways to profit from it. "Financial firms were lobbying to have all manner of troubled investments covered, not just those related to mortgages. "At the same time, investment firms were jockeying to oversee all the assets that Treasury plans to take off the books of financial institutions, a role that could earn them hundreds of millions of dollars a year in fees. "Nobody wants to be left out of Treasury's proposal to buy up bad assets of financial institutions."
Unbelievable. Wall Street and its backers created this mess and now they are going to clean up like bandits. Even Rudy Giuliani is lobbying for his firm to be hired (and paid) to "consult" in the bailout.
The problem is, nobody truly knows what this "collapse" is all about. Even Treasury Secretary Paulson admitted he doesn't know the exact amount that is needed (he just picked the $700 billion number out of his head!). The head of the congressional budget office said he can't figure it out nor can he explain it to anyone.
And yet, they are screeching about how the end is near! Panic! Recession! The Great Depression! Y2K! Bird flu! Killer bees! We must pass the bailout bill today!! The sky is falling! The sky is falling!
Falling for whom? NOTHING in this "bailout" package will lower the price of the gas you have to put in your car to get to work. NOTHING in this bill will protect you from losing your home. NOTHING in this bill will give you health insurance.
Health insurance? Mike, why are you bringing this up? What's this got to do with the Wall Street collapse?
It has everything to do with it. This so-called "collapse" was triggered by the massive defaulting and foreclosures going on with people's home mortgages. Do you know why so many Americans are losing their homes? To hear the Republicans describe it, it's because too many working class idiots were given mortgages that they really couldn't afford. Here's the truth: The number one cause of people declaring bankruptcy is because of medical bills. Let me state this simply: If we had had universal health coverage, this mortgage "crisis" may never have happened.
This bailout's mission is to protect the obscene amount of wealth that has been accumulated in the last eight years. It's to protect the top shareholders who own and control corporate America. It's to make sure their yachts and mansions and "way of life" go uninterrupted while the rest of America suffers and struggles to pay the bills. Let the rich suffer for once. Let them pay for the bailout. We are spending 400 million dollars a day on the war in Iraq. Let them end the war immediately and save us all another half-trillion dollars!
I have to stop writing this and you have to stop reading it. They are staging a financial coup this morning in our country. They are hoping Congress will act fast before they stop to think, before we have a chance to stop them ourselves. So stop reading this and do something -- NOW! Here's what you can do immediately:
1. Call or e-mail Senator Obama. Tell him he does not need to be sitting there trying to help prop up Bush and Cheney and the mess they've made. Tell him we know he has the smarts to slow this thing down and figure out what's the best route to take. Tell him the rich have to pay for whatever help is offered. Use the leverage we have now to insist on a moratorium on home foreclosures, to insist on a move to universal health coverage, and tell him that we the people need to be in charge of the economic decisions that affect our lives, not the barons of Wall Street.
2. Take to the streets. Participate in one of the hundreds of quickly-called demonstrations that are taking place all over the country (especially those near Wall Street and DC).
3. Call your Representative in Congress and your Senators. (click here to find their phone numbers). Tell them what you told Senator Obama.
When you screw up in life, there is hell to pay. Each and every one of you reading this knows that basic lesson and has paid the consequences of your actions at some point. In this great democracy, we cannot let there be one set of rules for the vast majority of hard-working citizens, and another set of rules for the elite, who, when they screw up, are handed one more gift on a silver platter. No more! Not again!
Yours,Michael MooreMMFlint@aol.comMichaelMoore.com
P.S. Having read further the details of this bailout bill, you need to know you are being lied to. They talk about how they will prevent golden parachutes. It says NOTHING about what these executives and fat cats will make in SALARY. According to Rep. Brad Sherman of California, these top managers will continue to receive million-dollar-a-month paychecks under this new bill. There is no direct ownership given to the American people for the money being handed over. Foreign banks and investors will be allowed to receive billion-dollar handouts. A large chunk of this $700 billion is going to be given directly to Chinese and Middle Eastern banks. There is NO guarantee of ever seeing that money again.
P.P.S. From talking to people I know in DC, they say the reason so many Dems are behind this is because Wall Street this weekend put a gun to their heads and said either turn over the $700 billion or the first thing we'll start blowing up are the pension funds and 401(k)s of your middle class constituents. The Dems are scared they may make good on their threat. But this is not the time to back down or act like the typical Democrat we have witnessed for the last eight years. The Dems handed a stolen election over to Bush. The Dems gave Bush the votes he needed to invade a sovereign country. Once they took over Congress in 2007, they refused to pull the plug on the war. And now they have been cowered into being accomplices in the crime of the century. You have to call them now and say "NO!" If we let them do this, just imagine how hard it will be to get anything good done when President Obama is in the White House. THESE DEMOCRATS ARE ONLY AS STRONG AS THE BACKBONE WE GIVE THEM. CALL CONGRESS NOW.
9:53 am - DJIA broken thru all support way back to 2006 !
The days ahead for DJIA is either sideway or downward. Projected DJIA low can be 9800 level.
8:53 am - DJIA massive -777 pts. plunge cause FKLI Sept to drop below 1000 for the 2nd time.
No position yet but think to go LONG today for Sept as it has been oversold.
Monday, September 29, 2008
4:06 pm - FKLI breaking lower due to DJIA futures down -191 pts.
No trade was done today due to roll over by institutions.
10:53 am - FKLI is moving sideway !
It is testing 1016/1018 support to see if it can break ! FKLI is resilient at this level. Think to short higher !
10:25 am - Market Report by Bill Wermine
Dear Traders,
The world stock markets are on hold and are yet to resume their downtrends until the powers that be in Washington decide on the bailout. The cartoon below expresses
my feelings. No matter what they decide the bear is in control and will claim more victims.
The world stock markets are on hold and are yet to resume their downtrends until the powers that be in Washington decide on the bailout. The cartoon below expresses
my feelings. No matter what they decide the bear is in control and will claim more victims.
Just the way we like it, a bailout with no strings attached.
Former Republican house speaker Newt Gingrich weighed in on the Wall St bailout " I find it inconceivable that the Treasury and the Federal Reserve could manage the whole economy of Wall St. And yet that is what Paulson is proposing. I think that is an undertaking of such gigantic delusion that is will be a
nightmare," Gingrich declared.
US Treasury chief Paulson and Bernanke have used every trick in their book to prevent a bear market from materializing on Wall St, before the presidential election which now threatens to eject the Republicans from the White House. They have been unsuccessful
Notice the attached Dow Futures chart which is in a relentless downtrend. I would like to see a high volume panic capitulation which is evidence of professional buying before committing to the long side of the Dow. Even then it would be a short term trade with careful risk management
The Federal reserve has tried to put a floor under the stockmarket by slashing the federal funds rate 325 basis points from a year ago to 2 % today, far below inflation. Futures traders in Chicago are betting on a 1/4 point cut on the Fed Funds rate in October as perhaps their final bullet to halt the downwave.
In my opinion it will fail: The reason is that Wall St, and the US financial insiders/ powers- Masters of the Universe have been running perhaps the biggest pyramid scam in all of history being the subprime mortgage scam. The pyramid is collapsing- major financial houses such as Lehmen/ Bear Sterns are bankrupt. Washington Mutual, a 150 year old bank failed- being the largest bank failure in US history. Depositers in InDi Mac Bank in California are still waiting to get back their deposits after it failed. The list goes on- AIG failed being taken over by the government/ Fannie May etc etc.
The housing market in the US continues to collapse with the highest foreclosure rate since the 1931 depression. This is destroying the wealth of the Middle class whose house is their only asset.
If you have assets/currencies in the US I suggest you exit. There is a possibility the US could declare an emergency- impose exchange controls and you could not get your money out. The US mint last week suspended the sale of American Eagle/ Buffalo gold coins. In 1932 Presendent Roosevelt in the US declaired an emergency and made it a criminal offense to hold gold coins or bars. There is a huge demand for gold in the US as a safe haven. Gold dealers are selling their stock of gold coins in some places at a 10 % premium to the gold price.
Open a Phillip Wrap account in Singapore where you can hold any currency cash deposit you wish - ie AUD/ Euro/ BRL. One of my clients opened a Wrap Account and placed his funds in the Lion AUD fund. This fund only invests in short term commercial paper and AUD Treasury bills. It is super safe and for AUD Lion Fund to fail there would have to be a nuclear holocaust and Australia would cease to exist. There are no Fannie May or mortgage bonds in this portfolio. If Obama wins that could ignite some furious trends in the currencies and commodities should benefit.
Continue to run your short US Dollar/Long Euro positions. Hold quality KLSE shares focusing on shares such as Dutch Lady/ F & N and Nestle which I hold for myself and clients. We still have to eat and these companies have solid balance sheets, are well managed and will survive the current volatility. Unlike the Dow, the KLSE had a capitulation last week, selling has dried up, and a solid base is forming from 1000 to 1050. Near term target 1200. I am looking at the CPO market. If the US Dollar collapses on a hint of an Obama victory that would benefit plantation shares and the CPO futures. CPO is forming a floor, there is evidence of professional buying in this environment of maximum doom and gloom, bad news, extreme fear. Reward is the greatest when uncertainty is at the maximum.
Have a good week
Bill
9:47 am - FKLI is likely to move sideway or downward.
The market does not like the Maybank - BII deal. Maybank is suspended today and likely to move downward when it reopen.
Friday, September 26, 2008
12:07 pm - Here is chart of crude oil & Gold
Crude oil has rebounded back from below USD 100 and looking to USD110.
Gold is retreated from its recent high USD 920.0. It had a support level at usd 880.0
10:10 am - Trading Book by Stuart McPhee
Dear Trader,
My friend and colleague, Stuart McPhee, has just released his new book 'Trading In A Nutshell, 3rd edition'. Daryl Guppy wrote the forewordfor him. This is good value and I highly recommend his very reasonably priced products. Stuart is the real deal. He walks the walk rather than talk the talk. He trades shares and futures in the Australian market and his focus is on Discipline and having a Trading Plan- without which you are a dead duck. He is also an honest man and keeps his word.
Several of our Traders Club members including myself and Martin/ attended his seminar on Trading Plans in the Concord Hotel in 2004 and it helped our trading results Acknowledging that there are thousands of trading books out there, he decided to do something a little different with this book.
He has created a little trading bundle to accompany the book, however it is only available from his website - not in bookstores. He has included about 10 hours of multimedia training, both video and audio tutorials on a bonus CD to compliment the book.
The bonus disc contains a number of useful items, including: Supplementary instructional videos corresponding to the charts withinthe book to further explain his trade examples and strategies. > 7 hours of audio interviews with him answering his subscribers' toptrading questions, including how he trades his two different methods.> Two additional PowerPoint presentations on chart patterns and reversal signals from his Triple your Trading Profits Workshop.
You can read more about it athttp://www.1shoppingcart.com/app/?Clk=2602942Make sure you grab a copy to empower you to compile that trading plan you need. Before you ask what is different in this book from the othertwo editions, please go and watch the video from Stuart at http://www.1shoppingcart.com/app/?Clk=2602942
I know having a library full of quality trading books is essential and has helped me - I also know this book will be a valuable addition foryours.
Regards,
Bill
PS: If you wait to buy the book in MPH you will only get the book - nothing more and not have the chance to get the bonus products. You will also have the opportunity to deal directly with Stuart.
My friend and colleague, Stuart McPhee, has just released his new book 'Trading In A Nutshell, 3rd edition'. Daryl Guppy wrote the forewordfor him. This is good value and I highly recommend his very reasonably priced products. Stuart is the real deal. He walks the walk rather than talk the talk. He trades shares and futures in the Australian market and his focus is on Discipline and having a Trading Plan- without which you are a dead duck. He is also an honest man and keeps his word.
Several of our Traders Club members including myself and Martin/ attended his seminar on Trading Plans in the Concord Hotel in 2004 and it helped our trading results Acknowledging that there are thousands of trading books out there, he decided to do something a little different with this book.
He has created a little trading bundle to accompany the book, however it is only available from his website - not in bookstores. He has included about 10 hours of multimedia training, both video and audio tutorials on a bonus CD to compliment the book.
The bonus disc contains a number of useful items, including: Supplementary instructional videos corresponding to the charts withinthe book to further explain his trade examples and strategies. > 7 hours of audio interviews with him answering his subscribers' toptrading questions, including how he trades his two different methods.> Two additional PowerPoint presentations on chart patterns and reversal signals from his Triple your Trading Profits Workshop.
You can read more about it athttp://www.1shoppingcart.com/app/?Clk=2602942Make sure you grab a copy to empower you to compile that trading plan you need. Before you ask what is different in this book from the othertwo editions, please go and watch the video from Stuart at http://www.1shoppingcart.com/app/?Clk=2602942
I know having a library full of quality trading books is essential and has helped me - I also know this book will be a valuable addition foryours.
Regards,
Bill
PS: If you wait to buy the book in MPH you will only get the book - nothing more and not have the chance to get the bonus products. You will also have the opportunity to deal directly with Stuart.
9:21 am - FKLI is moving sideway and poised to downward movement.
News of US Bank bailout may not fall through.
Thursday, September 25, 2008
2:51 pm - FKLI break down at 1020/1022.
However, there is a lot of support at these level. Out of our LONG position.
9:04 am - FKLI gap down due to no confirmation of bailout plan from the US Government.
Support at 1020/1018. Breaking this level is bad for LONG position.
Wednesday, September 24, 2008
9:35 am - FKLI is not going any lower today as DJIA futures is up +86
Warren Buffett is buying Goldman Sach so there is a support for the market and also there are more financial stocks in US been added into banning naked short selling.
On top of that, there is also the institution rollover for their contract. you will notice higher volume in Sept and Oct 2008 contracts.
Tuesday, September 23, 2008
9:43 am - FKLI gap down but move upside. The market is strong due to higher crude oil closing !
Our FKLI is likely to move sideway for this week due to falling regional market but raising crude oil prices.
Monday, September 22, 2008
5 pm - FKLI is moving sideway waiting for news !
This morning, FKLI reacted to repegging of ringgit so it drops. After lunch, when confirmed no repegging FKLI continue to move back up.
10:47 am - Market Outlook by Bill Wermine
Dear Traders,
Five years ago Warren Buffet called CDS (credit default swaps) financial weapons of mass distruction. He directed his insurance arm of Berkshire Hathaway (BKK) to exit the business. The gut wrenching turmoil in the credit markets this week proved that Buffet was right. The collapse of Bear Sterns, the sale of Merrill Lynch to Bank of America, bankruptcy of Lehman Brothers, and the meltdown of AIG were all related to CDS that led to the fall of these financial giants. AIG received an emergency $85 billion loan from the Federal Reserve on 16 Sept to stave off bankruptcy and prevent a nuclear explosion in the CDS market and a possible world wide financial panic.
This is leverage in reverse and the government was forced to step in to meet the margin call. The US taxpayers are now on the hook for over USD 3890 for each man woman and child. The government will monitize this debt by printing money . That is why you should be out of the US Dollar and into Gold and commodities.
CDS profit when housing prices go up and as long as the house buyers pay their mortages, the sellers make a killing. Unfortunately, the US is in a major recession with massive job losses, factories closing, auto sales in a collapse, roaring inflation and over 10 % of Americans are in default or behind in their house payments.
The US Governement can not take care of their returning disabled Iraq war veterans many of whom live on the streets. The government tries to cover this up and deny it but the public seems to be getting smarter so Obama has a chance to win. If he does expect the US Dollar to collapse and our plantation shares/Man Hedge Fund to go up
(check out http://www.intrade.com/ ) This is a bookmaker in Ireland wher you can place bets on anything including the US election. This is real time real money. Today Obama took a big jump and is now leading McCain.
I like the AUD - (Our AUD Man funds were up 2.8 % last week recovering a bit from the August loss). Plantation companies should also perform but avoid banks, construction and property companies, REITs, bonds, and deal in only the highest quality blue chip consumer shares with dividends.
We have had massive selling of Plantation shares as Crude Palm Oil has lost half its value in the last 6 months. - Everyone is bearish. Last week CPO
hit a monthly support and bounced over 200 points. Plantation shares were up across the board over 10 %. Tom Williams of TradeGuider calls this pushing through supply. It is important to look at monthly and weekly charts to gain a better view. The palm oil charts are definitely positive as professionals load up in this pessimistic and fearful environment. There is strong evidence of hidden potential buying.
How do we navigate this financial storm and avoid going down with the ship like Captain Smith in the Titanic?
Consider Man Investments- new capital guaranteed fund to launch on 29 September. This can be your financial lifeboat. Learn to trade on line- Jupiter Securities offers the cheapest commissions in Malaysia - only .05 or RM 8 + clearing fees. Those graduates of our Master the Markets/TradeGuder users are equipped to making quick profits even in this environment.
Five years ago Warren Buffet called CDS (credit default swaps) financial weapons of mass distruction. He directed his insurance arm of Berkshire Hathaway (BKK) to exit the business. The gut wrenching turmoil in the credit markets this week proved that Buffet was right. The collapse of Bear Sterns, the sale of Merrill Lynch to Bank of America, bankruptcy of Lehman Brothers, and the meltdown of AIG were all related to CDS that led to the fall of these financial giants. AIG received an emergency $85 billion loan from the Federal Reserve on 16 Sept to stave off bankruptcy and prevent a nuclear explosion in the CDS market and a possible world wide financial panic.
This is leverage in reverse and the government was forced to step in to meet the margin call. The US taxpayers are now on the hook for over USD 3890 for each man woman and child. The government will monitize this debt by printing money . That is why you should be out of the US Dollar and into Gold and commodities.
CDS profit when housing prices go up and as long as the house buyers pay their mortages, the sellers make a killing. Unfortunately, the US is in a major recession with massive job losses, factories closing, auto sales in a collapse, roaring inflation and over 10 % of Americans are in default or behind in their house payments.
The US Governement can not take care of their returning disabled Iraq war veterans many of whom live on the streets. The government tries to cover this up and deny it but the public seems to be getting smarter so Obama has a chance to win. If he does expect the US Dollar to collapse and our plantation shares/Man Hedge Fund to go up
(check out http://www.intrade.com/ ) This is a bookmaker in Ireland wher you can place bets on anything including the US election. This is real time real money. Today Obama took a big jump and is now leading McCain.
I like the AUD - (Our AUD Man funds were up 2.8 % last week recovering a bit from the August loss). Plantation companies should also perform but avoid banks, construction and property companies, REITs, bonds, and deal in only the highest quality blue chip consumer shares with dividends.
We have had massive selling of Plantation shares as Crude Palm Oil has lost half its value in the last 6 months. - Everyone is bearish. Last week CPO
hit a monthly support and bounced over 200 points. Plantation shares were up across the board over 10 %. Tom Williams of TradeGuider calls this pushing through supply. It is important to look at monthly and weekly charts to gain a better view. The palm oil charts are definitely positive as professionals load up in this pessimistic and fearful environment. There is strong evidence of hidden potential buying.
How do we navigate this financial storm and avoid going down with the ship like Captain Smith in the Titanic?
Consider Man Investments- new capital guaranteed fund to launch on 29 September. This can be your financial lifeboat. Learn to trade on line- Jupiter Securities offers the cheapest commissions in Malaysia - only .05 or RM 8 + clearing fees. Those graduates of our Master the Markets/TradeGuder users are equipped to making quick profits even in this environment.
For the more adventurous try the CI and CPO futures. Give Martin a call on this. He is looking for 2 more futures brokers and will train you. 
Hold on to you hat for a wild ride next week
Bill
10:05 am - For short term, cut the long position at 1032/1033.
For the longer term LONG, put stop at 1016.5
9:19 am - FKLI gap up due to DJIA higher closing.
Right now ! DJIA futures -139 pts. So there is a limit to how high FKLI can go up today !
Saturday, September 20, 2008
9:27 am - SEC banned short selling certain financial US stocks
What is short-selling and 'naked' shorting? WASHINGTON (AP) - As part of a wide-ranging effort to contain Wall Street'sworst financial crisis since the Great Depression, the Securities and ExchangeCommission took the unprecedented step Friday of banning short sales of stock in799 financial companies. What follows are questions and answers about the government's decision: Q. What is short-selling? A. The activities of short-selling might sound lewd at times -- there's"naked shorting" and "covering your shorts" -- but the practice of selling stockshort is pretty straightforward. Investors "sell short" if they think the shares of a particular company aregoing to decline and they want to profit from the drop. To do this, an investor borrows shares of Company X, usually from theirbroker, and then immediately sells them at their market price, say $100 pershare. If the share price falls, let's say to $80, the investor buys back theshares and returns them to the broker. The investor pockets the difference -- inthis case, $20 per share. The practice can be risky. If the shares increase in value, the investor hasto buy them back at a higher price, losing money in the process. Q. Why did the SEC temporarily ban the practice? A. The government and some money managers blame widespread short-selling byhedge funds for contributing to the collapse of Lehman Brothers Holdings Inc.,American International Group Inc. and other troubled companies by driving downtheir share prices. Shares of the two surviving investment banks, Goldman Sachs Group Inc. andMorgan Stanley, saw sharp price drops this week. On Wednesday, Morgan Stanleyshares fell 24.2 percent while Goldman's dropped 13.9 percent. Such sharp drops erode the market's confidence, which makes it harder forthe companies to raise capital and could scare away clients, further weakeningthe companies. The SEC's ban gives financial companies time to stabilize "without the dailydrumbeat of hedge funds shorting them on a coordinated basis," said PhilOrlando, chief equity market strategist for Federated Investors Inc., whichmanages $330 billion in assets. New York Attorney General Andrew Cuomo said Friday his office willinvestigate whether some short sellers spread rumors and negative information todrive down the share prices of Lehman, AIG, Goldman and other firms. Q. What's naked shorting? A. Naked shorting involves selling shares without actually borrowing them, apractice that critics say is particularly prone to abuse, because it potentiallyenables more shares to be sold into the market than actually exist. The SEC temporarily banned naked shorting of 19 financial companies in July.On Wednesday, it restricted the practice but did not ban it outright. Some moneymanagers have called for the SEC to prohibit naked shorting. Q. How much are short sellers really to blame for the mess we're in? A. That's a hotly disputed question. The SEC said that in normal times"shorts" can make markets more efficient and bring in more capital, but addedthat a "time out" is needed. Richard Baker, president of the Managed Funds Association, a trade group forhedge funds, said shorting is "an essential risk management tool." Q. Will the SEC's move work? A. On Friday, it certainly helped reverse the slide in financial companies'sshares, as Goldman and Morgan Stanley each jumped about 20 percent. The hope is that by the time the ban is lifted, the rest of the government'srescue plan, which includes acquiring some of the toxic mortgage-related assetsfrom large banks, will kick in and the market will stabilize on its own. But Baker at the MFA argued that by the time this summer's temporary ban onnaked shorting was lifted, the shares of the 19 covered companies had droppedanyway. Copyright 2008 Associated Press. All rights reserved. This material may not be
9:24 am - Stocks soar as investors bet on gov't rescue plan
Stocks soar as investors bet on gov't rescue plan NEW YORK (AP) - AP Video 0919b--wall--street Wall Street had another extraordinary rally Friday as investors stormed backinto the market, relieved that the government plans to restore calm to thefinancial system by rescuing banks from billions of dollars in bad debt. The DowJones industrials soared about 370 points, giving them a gain of about 780 overtwo days, and Treasurys fell as money flowed into equities. The government's proposal, while still a work in progress, has placatedinvestors who worried that a continuum of bad bets on mortgages would hobblemore financial companies and cause further damage to the strained banking systemand the overall economy. "If a solid plan is put in place, it's definitely going to be a positive ineasing the pain," said Stephen Carl, principal and head of equity trading at TheWilliams Capital Group. He added, though, that the set-up of any plan willdetermine its success. A new government ban on short selling, or placing bets that a stock willfall, likely added to the market's gains as traders adjusted their positions. "Abig chunk of this is scaring all the shorts to cover their bets," said JoeBattipaglia, market strategist at Stifel, Nicolaus & Co., referring to shortsellers. Treasury Secretary Henry Paulson, speaking about the rescue plan, said abold approach is needed to remove troubled assets from the books of financialfirms. He offered few details, but said he would working through the weekendwith congressional leaders to assemble a remedy. The plan could help neutralize a yearlong credit crisis that intensifiedthis week. Wall Street suffered massive losses Monday and Wednesday, and creditmarkets essentially seized up following this week's bankruptcy of LehmanBrothers Holdings Inc. and the bailout of teetering insurer AmericanInternational Group Inc. Analysts said it was the first government response decisive enough torestore confidence in the markets; in the past, it has relied largely on stepslike injecting cash into the banking system that, at least until now, had alimited impact. "Everything they had done had been a Band-Aid approach, at the margins,"said Jay Mueller, economist at Strong Capital Management. "Now we're dealingwith the root problem." The government took other steps Friday to restore stability to the financialsystem. The Federal Reserve said it will expand its emergency lending and letcommercial banks finance purchases of asset-backed paper from money marketfunds. The Fed injected more money into the U.S. financial system, as it haddone earlier in the week. The central bank also said it will buy short-term debtobligations issued by mortgage giants Fannie Mae, Freddie Mac and the FederalHome Loan Banks. To further ease investors' anxieties and bolster tattered investorconfidence, the Treasury Department has decided to use a Depression-era fund toprovide guarantees for U.S. money market mutual funds. Money market mutual fundsare typically considered safe, but some investors have been fleeing them,fearing that the funds' holdings included souring corporate debt. And to help limit the freefall in financial stocks, the Securities andExchange Commission on Friday enacted a ban until next month on theshort-selling of nearly 800 financial stocks. Short-selling is the commonpractice of betting against a stock by borrowing shares and then selling them inthe open market. A short-seller's hope is the stock will fall; if it does, thestock can be bought back at the lower price. Those cheaper shares can bereturned to the lender, allowing the investor to pocket the profits. Traders canlose, however, if the stock rises. Wall Street observers have disagreed over the extent to which pressure fromall those bets that a stock will fall shaped investor sentiment and strangledsome financial stocks, like those of Lehman Brothers last week. Some say thefundamental problems with overleveraged financial companies warranted thepessimism while others say the short selling was a death knell for somefinancial names. "The federal government has been petitioned by Wall Street to take evasiveaction in the money markets, the stock and bond markets, to avoid a completemeltdown of the credit system," said Battipaglia. "Once the credit system meltsdown, the economy falls. We can hand-wring about if this is the proper thing forthe government to do, or if Wall Street pulled the panic button too soon, butthat's something for the historians to sort out." It's difficult to quantify how much of the market's gains reflected shortsellers who are forced to step in and cover their bets by buying now risingstocks that had predicted would fall. While that appeared to play some role inthe advances Thursday and Friday, the Nasdaq composite index -- dominated by bigtechnology stocks, not financials -- showed big gains along with the Dow and theStandard & Poor's 500 index. The Dow rose 368.75, or 3.35 percent, to 11,388.44 after having been up asmuch as 463.36. Friday was a quarterly "quadruple witching" day, which marks thesimultaneous expiration of options contracts, an event that often adds tovolatility and heavy volume. Still, much of the market's moves were due to thegovernment's actions Friday. Broader stock indicators also surged. The S&P 500 index rose 48.57, or 4.03percent, to 1,255.08, and the Nasdaq composite index rose 74.80, or 3.40percent, to 2,273.90. Even with Friday's big gains, stocks didn't end the week with much changeafter the whipsaw sessions. The Dow slipped 0.29 percent, the S&P 500 rose 0.27percent and the Nasdaq added 0.56 percent. Treasury prices dropped as investors poured money back into stocks. Theyield on the 3-month Treasury bill -- a safe investment to which investors haverushed this week -- rose to 0.95 percent from 0.07 percent late Thursday. Yieldsmove opposite from price. The yield on the benchmark 10-year Treasury note shotup to 3.81 percent from 3.53 percent late Thursday. The stock market's enormous swings during the week reveal how anxiousinvestors have been about the tightness in the credit markets the possibilitythat other financial companies might succumb to the difficulties in the markets. The only lasting move in a week of intense volatility came late inThursday's session when reports emerged that the government was considering aplan that would shift soured debt off financials' books. A wobbly marketrocketed higher, giving the Dow a 410-point gain for the session, buying thatcontinued through Friday. The dollar rose against most other major currencies in Friday trading, whilegold prices jumped. Light, sweet crude rose $6.67 to settle at $104.55 a barrelon the New York Mercantile Exchange. Advancing issues outnumbered decliners by about 7 to 1 on the New York StockExchange, where consolidated volume came to a heavy 9.1 billion shares comparedwith 10.3 billion shares traded Thursday. The Russell 2000 index of smaller companies rose 30.06, or 4.15 percent, to753.74. Overseas stock markets soared. Japan's Nikkei stock average jumped 3.8percent, and Hong Kong's Hang Seng index surged 9.61 percent. In Europe,Britain's FTSE 100 jumped 8.84 percent, Germany's DAX index advanced 5.56percent, and France's CAC-40 rose 9.27 percent. The Dow Jones industrial average ended the week down 33.55, or 0.29 percent,at 11,388.44. The Standard & Poor's 500 index finished up 3.38, or 0.27 percent,at 1,255.08. The Nasdaq composite index ended the week up 12.63, or 0.56percent, at 2,273.90. The Russell 2000 index finished the week up 33.48, or 0.27 percent, at753.74. The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted indexthat measures 5,000 U.S. based companies -- ended at 12,882.14, up 117.26points, or 0.92 percent, for the week. A year ago, the index was at 15,371.29. Copyright 2008 Associated Press. All rights reserved. This material ma
Friday, September 19, 2008
Thursday, September 18, 2008
11:45 am - Cut loss as FKLI has no strength to move up yet !
Stay aside as it is no earlier to short or long yet.
9:53 am - DJIA continue to fall ! Huge volume is in play !
It can reverse anytime if US government intervene on interest rate.
Wednesday, September 17, 2008
2:10 pm - There was huge ultra high volume for DJIA
This cud be a reversal volume but it break 10740, it can get lower.
Tuesday, September 16, 2008
5:42 pm - FKLI likes the news release from the alternative government.
That may explain why our FKLI shot up after lunch. Anwar's press conference was at 2 pm today.
5:23 pm - Beautiful volume and strength bar
Took profit for clients at 980 and waiting to short higher !
Monday, September 15, 2008
10 am - Hang Seng is closed today !
Our FKLI market is moving sideway after huge fall ! 1000 level will be tested today or tomorrow !
9:25 am - FKLI gap down due to Lehman filing for bankrupcty and political uncertainly .
Go right ahead to short today !
Sunday, September 14, 2008
2:23 pm - Feds, Wall Street race to try to save Lehman
NEW YORK (AP) - 0912b--lehman The field of possible buyers for Lehman Brothers narrowed Saturday, but theparties involved in the discussions over the wounded investment bank's futurewere at loggerheads over how to finance the rescue. An investment banking official said Bank of America Corp. and Britain'sBarclays Plc have emerged as the front runners for Lehman Brothers after apossible cash injection from its rival Wall Street banks and brokerages. Top officials from the Federal Reserve and the Treasury Department andexecutives from several Wall Street banks met at the New York Fed's downtownManhattan headquarters Saturday for the second day in a row try to hash out adeal to rescue Lehman Brothers. The financial world was watching. Failure could prompt skittish investors tounload shares of financial companies, a contagion that might affect stockmarkets at home and abroad when they reopen Monday. Discussions are expected to continue Sunday, said Andrew Williams, aspokesman for the New York Fed. The investment banking official, who asked not to be named because the talkswere ongoing, said the investment houses were balking at paying to polish upLehman's balance sheet so Bank of America or Barclays could buy a financiallyclean firm. He said the investment banks were angling for the government to provide somemoney, as it did when it helped JPMorgan Chase & Co. buy Bear Stearns in March,because they would get little to nothing in return for their help. The government has drawn a line in the sand over using taxpayer money tohelp rescue Lehman Brothers, however. The official said the talks were tense and neither side appeared willing toback down. Besides selling the company whole or piecemeal, Lehman could be liquidated,perhaps with financial firms agreeing to still do business with the company asit wound down. Or, a financial company or companies could buy Lehman's "good" assets. Itsshunned or devalued real-estate assets could be placed in a "bad bank" financedby other banks. Saturday's participants included Treasury Secretary Henry Paulson, TimothyGeithner, president of the New York Fed, and Securities and Exchange CommissionChairman Christopher Cox. Citigroup Inc.'s Vikram Pandit, JPMorgan Chase & Co.'s Jamie Dimon, MorganStanley's John Mack, Goldman Sachs Group Inc.'s Lloyd Blankfein, and MerrillLynch & Co.'s John Thain were among the chief executives at the meeting. Representatives for Lehman Brothers were not present during the discussions. They gathered on the heels of an emergency session convened Friday night byGeithner -- the Fed's point person on financial crises. Federal Reserve Chairman Ben Bernanke is actively engaged in thedeliberations but wasn't in attendance. Geithner convened the meeting Friday evening and told bankers gathered atthe New York Fed to come up with a solution or risk being the next to go under,investment banking officials with direct knowledge of the talks said. They spokeon condition of anonymity because the talks were ongoing. A spokesman for Lehman declined to comment about the meeting. Other potential buyers could include Japan's Nomura Securities, France's BNPParibas and Deutsche Bank AG. All have declined to comment. Participants in Saturday's meeting were also trying to tackle a broaderagenda that includes problems at American International Group Inc. andWashington Mutual Inc., said the investment bank officials, who were briefed onthe talks. AIG, the world's largest insurer, and WaMu, the nation's biggest savingsbank, have taken steep losses during the past year from risky investments.Investors, worried they do not have enough cash on their balance sheets towithstand further hits, unloaded their shares on Friday. AIG's shares dropped about 31 percent on Friday. WaMu's shares shed about3.5 percent. Shares of investment bank Merrill Lynch & Co. Inc. also lost 12.3percent. Lehman's stock closed at $3.65 Friday -- an all-time low and downnearly 95 percent from its 52-week high of $67.73. Lehman Brothers and AIG are the top priorities, said the investment bankingofficials. WaMu insisted Friday it has adequate capital to fund its operationseven as it announced another multibillion dollar write-down on bad mortgageloans. WaMu has 76 percent of its deposits insured by the Federal Deposit InsuranceCorp., an independent agency created by Congress to insure deposits in banks andthrifts up to at least $100,000. AIG has lost more than $18 billion over thelast three quarters due to investments tied to subprime mortgages. Global fears intensified Saturday that Lehman's collapse would staggermarkets and undercut confidence in the U.S. financial system. Germany's Finance Minister Peer Steinbrueck urged that a resolution be foundbefore Asian markets open, warning ominously, "the news that is coming out ofthe U.S. is bad." Lehman Brothers Holdings Inc. put itself on the block earlier this week. Badbets on real-estate holdings -- which have factored into bank failures and takenout other financial companies -- have thrust the 158-year-old firm in peril. Ithas been dogged by growing doubts about whether other financial institutionswould continue to do business with it. Richard S. Fuld, Lehman's longtime CEO, pitched a plan to shareholdersWednesday that would spin off Lehman's soured real estate holdings into aseparately traded company. He would then raise cash by selling a majority stakein the company's unit that manages money for people and institutions. Thatdivision includes asset manager Neuberger Berman. Government officials want to avoid a Bear Stearns-like bailout; the Fed inMarch agreed to provide a loan of nearly $29 billion as part of JPMorgan Chase &Co.'s takeover of the firm. Unlike Bear, Lehman can go directly to the Fed todraw emergency loans if it needs a quick source of ready cash. In recent weeks,though, there's been no indication that Lehman has done so. Bear's sudden meltdown led the Fed to engage in its broadest use of lendingpowers since the 1930s. Fearful that other firms could be in jeopardy, the Fedtemporarily opened its emergency lending program to investment firms, aprivilege that for years was granted only to commercial banks, which are subjectto tighter regulation. Those actions -- along with the Bush administration's take over of mortgagegiants Fannie Mae and Freddie Mac just last week -- have spurred concerns thattaxpayers could be on the hook for billions of dollars and companies will beencouraged to take on extra risks because they believe the government will cometo their aid. Paulson and Bernanke, however, have said they needed to help Bear Stearnsand Fannie Mae and Freddie Mac to avert a financial calamity that woulddevastate the national economy. Lehman's Fuld is currently a member of the New York Fed's board ofdirectors. Copyright 2008 Associated Press. All rights reserved. This material may not be
Friday, September 12, 2008
5:01 pm - FKLI looking bullish - forming double bottom.
Think to go LONG on Monday ! It is technical rebound.
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