Careful of Furious Bears! – FKLI 100705

For this week, without hesitation, we will remain our bearish bias towards the market and ready to allow risk averse client to initiate short position if the 1300 level is not able to be maintained for mid to long term trading. Overall market is weak with a lot of technical indicators pointing towards downward pressure.

The important support level of the Bollinger middle band, the MA 100 and the uptrend line seems to be convincingly being taken out. At this level, we are more keen to see whether the 1300 psychological level will be taken out to allow the furious bears to take charge. Failure for this level to being held will trigger a massive selling and major correction is expected to set in.

However, towards the end of the World Cup, market is expected to trade in range between 1295 – 1315 levels for this week. Risk taker investors can continue to initiate short position on strength, however, risk averse investors should only initiate short position if the 1300 level for both the cash and the futures is being taken out convincingly.

[Reminder: US market will be closed tonight in accordance with the celebration of Independence Day.]

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The information herein was obtained or derived from the source that we believed are reliable.No liability can be accepted for any loss that may arise from the use of this report.All opinions and estimates included in this report constitutes our judgement as of this date and are subject to change without notice.

Bears Dominated! – FKLI 100702

As per mentioned, breaking the 1320 level will send the FKLI to trade near to the 1300 level and now whether this 1300 level will able to hold or will be taken out as well is our next question to think of.
Failure for the 1300 level to hold will definitely allow the bears to win the battle and further weakness is expected. For cash, the cash need to hold above the current level of 1308 – MA100 or at least hold above the 1300 psychological level, failure for the above two levels to sustain will definitely send the index to trade even lower.

At this moment, we will firmly remain our bearish bias towards the market and those who have shorted the market should hold on to your position. The next level for short that we are looking at is – if the 1300 level is being taken out convincingly.
Support for the day is seen at 1300 – 1295 levels and the resistance is seen at 1310 level.

US MARKET

Further dropping… The US market resumed its downside trading and closed 41 points lower as US manufacturing and home sales indicated slower growth. The US market definitely will be in the weak market momentum so long the index remains below the MA 200 level.
[Reminder: US will release Unemployment Rate (Survey 9.8% Vs Prior 9.7%) and change in nonfarm payroll (Survey –130K Vs Prior 431K  later tonight.]

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The information herein was obtained or derived from the source that we believed are reliable.No liability can be accepted for any loss that may arise from the use of this report.All opinions and estimates included in this report constitutes our judgement as of this date and are subject to change without notice.

FKLI New Quarter 1st July

The CI ended down 0.4%, finishing the second quarter of the year 0.5% lower. Meanwhile on the FKLI new month July settle at 1303, 6 points discount against cash. Total volume transacted at 12669 from 16574 the previous day as most of the month end roll complete. Major Southeast Asian stock markets were mixed yesterday, a lackluster second quarter for most, amid concerns over funding conditions for European banks and the pace of the global recovery.
Regional market- Hong kong and Thailand market closed today.

There has been no panic selling in the market yesterday despite the sharp drop in Dow. Meanwhile, we have a bearish view on the fkli as its trading below the major SMA We still wait and see if the FKLI and maintain at the physiological support at 1300. To the upside, the 1325 pt-level is still the immediate resistance while next resistance is seen at the 1350 pt-level. The 1298-1303 pt-level is still the immediate support for the market

US MARKET
U.S. stocks staggered to the end of a dismal second quarter last night in another low volume session as investors found little reason to take on risk after conflicting economic data.   The Dow dropped 96.28 points (-0.98%) The S & P 500 Index slid 10.53 points (-1.01%), to 1,030.71. Nasdaq fell 25.94 points (-1.21%) to 2,109.24. For the second quarter, the Dow fell 10%, the S&P 500 lost 12% and the Nasdaq dropped 12% as worry about Europe's sovereign debt and the sustainability of the U.S. economic recovery caused investors to pull back from the most recent closing highs hit in late April

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The information herein was obtained or derived from the source that we believed are reliable.No liability can be accepted for any loss that may arise from the use of this report.All opinions and estimates included in this report constitutes our judgement as of this date and are subject to change without notice.

Bears Attacking! – FKLI 100630

Broke through the 1320 level will send the index to trade all the way down to 1305 – 1300 levels as per mentioned previously. With the overnight tumbled in the Dow, will the cash resume its drop today? In our view, as long as the 1320 level not manage to be regained immediately, the chances for the cash to face with free fall till the 1300 level is very high as the 1320 level is the important psychological support level. With the current level, the index is facing with high downside risk as the Bollinger middle band and the MA 50 & MA 100 levels maybe successfully taken out by the bears.

Next, will this round of drop be a major correction or minor correction? We are in the view that if the 1300 level being taken out convincingly, then the correction will be major as the index will have higher chances to drop below the 1250 level.
Risk taker investors can accumulate short position on strength for mid to long term trading. The support for the day is seen at 1310 – 1305 levels and the resistance is seen at 1325 level.

US MARKET

268 points of sharp dropped suffered by the Dow after the consumer confidence slump and the concern over the growth in China. With the nearly 300 points dropped, the bears are successfully taken over bulls' position and further slide in the index is expected. Technical outlook remained negative with the index trading way below the MA 200 level. The support is seen at 9800 level and the resistance is seen at 10000 level.
[Reminder: US will release Employment Change (Survey 60K Vs Prior 55K) later tonight.]

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The information herein was obtained or derived from the source that we believed are reliable.No liability can be accepted for any loss that may arise from the use of this report.All opinions and estimates included in this report constitutes our judgement as of this date and are subject to change without notice.

Resilient… – FKLI 100629

Overall market remained resilient with downside will be well supported towards the end of second quarter, however, market will continue its thin volume trading. For today, 7 points of premium towards the cash will keep the FKLI to havor around this level with immediate resistance is seen at 1335 – 1338 levels and the support is seen at 1328 – 1325 levels.

Overall technical landscape still in positive territory, albeit at the same time also facing with higher downside risk. Thus, investors can remain holding the long position but take opportunity for these two days to take profit and ready to sell into strength after the end of the month.

US MARKET
Another marginal weak market with the index closed lower of 5 points as crude oil prices and metal prices traded lower. Form technical perspective, the general outlook never change – bearish, with the index trading below the MA 200 and the Bollinger middle band. The immediate resistance is seen at 10195 level and the support is seen at 10080 level.
[Reminder: US will release Consumer Confidence (Survey 62.5 Vs Prior 63.3) later tonight.]

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The information herein was obtained or derived from the source that we believed are reliable.No liability can be accepted for any loss that may arise from the use of this report.All opinions and estimates included in this report constitutes our judgement as of this date and are subject to change without notice.