Thursday, December 30, 2010
Wednesday, December 29, 2010
The Malaysian stock market has finished higher now in back-to-back sessions, adding just 6 points or 0.4 percent in that span. The Kuala Lumpur Composite Index moved just above the 1,515-point level, and analysts are forecasting a steady if unspectacular start to the trading day on Wednesday.
The global forecast for the Asian markets suggests little activity ahead of the year-end holiday, with mixed economic data out of the United States adding to the cautious sentiment. Gold is up as a safe haven, along with oil and financials, while the technology stocks and properties may fall under pressure. The European and U.S. markets were mixed in light volume and ultimately finished largely unchanged - and the Asian markets are expected to follow that pattern.
The KLCI finished slightly higher on Tuesday, thanks to limited upside from the financial shares, industrial issues and plantation stocks.
For the day, the index climbed 5.72 points or 0.38 percent to finish at 1,517.44 after trading between 1,509.55 and 1,525.99. Volume was 822.88 million shares worth 1.22 billion ringgit.
Among the actives, Sime Darby added 0.5 percent and Kuala Lumpur Kepong, Public Bank, Hong Leong Financial and Genting also finished higher. Maybank and Tenaga were unchanged, while CIMB Holdings ended lower.
Monday, December 27, 2010
FBM KLCI 27 December 2010
As indicated by A, the KLCI is basically still consolidating in a sideways manner, and on Monday, it gained 0.14 of a point to close at 1511.72 points. Therefore, resistance and support remains unchanged in 1532 and 1500 respectively.
As shown on the chart above, the KLCI is still consolidating within the T1 and T2 Triangular Pattern, and the consolidation is expected to stay intact until any break out. T1 line serves as the dynamic resistance while the T2 line is also another support.
Meanwhile, the Bollinger Bands expanded 2%, but this expansion is insignificant, and therefore, not valid for any signals consideration. Nevertheless, with the KLCI above the Bollinger Middle Band, the immediate technical outlook for the KLCI shall stay positive.
As indicated by B, total market volume fell 7.43%, with volume below the 40-day Volume Moving Average. This suggests that the market is relatively quiet. But it is usually normal to see lower trading volume when the market is moving sideways.
As indicated by C, the Stochastic remains above 70%, in the short term bullish territory. Therefore, the Stochastic is still suggesting a short term bullish biased movement for the KLCI.
In conclusion, the consolidation within the T1 and T2 triangular pattern of the KLCI remains in place, until a valid break out above the T1 line or below the T2 line.
Friday, December 24, 2010
Thursday, December 23, 2010
The data-heavy day comes as the bulls look to continue Wall Street's hot December, which has seen the S&P 500 and Nasdaq Composite rally for five straight days and the Dow land at levels unseen since August 2008.
The premarkets are likely to be influenced by an 8:30 a.m. ET new report expected to show initial jobless claims inched up last week to 420,000 from 415,000. Continuing claims are also expected to rise to a level of 4.14 million.
Also ahead of the open, the Labor Department is set to issue a new report on personal spending and income for November. Economists forecast spending rose 0.5% last month, building on October's 0.4% rise.
The U.K.'s FTSE 100 rose 0.08% to 5988.51, France's CAC 40 slipped 0.26% to 3909.71 and Germany's DAX inched up 0.08% to 7073.44.
SPX, COMP Extend Winning Streak to 5 Days
Powered by streaking financial stocks, Wall Street quietly landed on Wednesday at levels unseen in more than two years with the S&P 500 and Nasdaq notching their fifth rally in a row.
The S&P 500 Index (SPX – 1,258.84) tacked on 4.2 points, or 0.3%, to mark its fifth straight day of gains. The SPX tapped an intraday high of 1,259.39 -- territory the broad-market bellwether hasn't explored since Sept. 19, 2008. Finally, the Nasdaq Composite (COMP – 2,671.48) rounded out the glad tidings by adding 3.9 points, or 0.2%. The COMP's session peak of 2,675.26 was its highest perch since Dec. 28, 2007 -- nearly three years ago. Like the SPX, the COMP has gained ground in each of the past five trading days.
CRUDE OIL Gushes 0.66 Higher
Crude futures followed suit with stocks today, notching modest gains as traders reacted to the day's regularly scheduled inventory report. The Energy Information Administration (EIA) noted that U.S. crude stockpiles declined by 5.3 million barrels last week, marking the third straight week of losses. Additionally, a cold snap blanketing the country helped propel petroleum products higher. Crude oil for February delivery ended up 66 cents, or 0.7%, at $90.48 per barrel. This marks black gold's highest close since Oct. 3, 2008.
Wednesday, December 22, 2010
Futures on the Dow Jones Industrial Average DJH11 11,469, -2.00, -0.02%) were flat at 11,471 and S&P 500 index futures (SPH11 1,250, -0.30, -0.02%) were virtually unchanged at 1,250.80. Nasdaq 100 futures edged down 2 points to 2,233.20.
The third estimate of U.S. third-quarter gross domestic product is due at 8:30 a.m. Eastern time. The market expects annualized growth to be revised upward to 2.8%, up from a previous estimate of 2.5%.
After the market opens, at 10 a.m. Eastern, data on November existing home sales will be released.
EDow is Rock Steady
FBM KLCI 22 December 2010
As indicated by A, the FBM KLCI gained 9.87 points or 0.66%, to close at 1515.05 points. The immediate resistance for the KLCI remain at 1532 while the support is still at the 1500 level. Meanwhile, the KLCI is also set to test the descending line of the triangle.
As shown on the chart above, the Bollinger Bands expanded with only 4%, but still the immediate technical outlook turns slightly positive as the KLCI breaks above the Bollinger Middle Band. If the Bollinger Bands should continue to expand, while the KLCI stays above the Bollinger Middle Band, more upside room is expected for the KLCI.
As indicated by B, total market volume fell 7.95%, but with volume above the 40-day Volume Moving Average. Generally, if volume could stay above the 40-day Volume Moving Average, the market sentiment is expected to improve.
As indicated by C, the Stochastic rebounded strongly, breaking above the 70% level by margin. If the Stochastic could stay above 70%, it means that the KLCI short term movement is picking up strength again.
In conclusion, technical outlook is turning positive as the KLCI regain its position above the Bollinger Middle Band, as well as the 14, 21, 31 EMA. The KLCI is set to test the all time high resistance of 1532.
Tuesday, December 21, 2010
FBM KLCI 21 December 2010
As indicated by A, the FBM KLCI rebounded on Tuesday, breaking above the 1500 level, to close at 1505.18 points, up 9.30 points. Therefore, the immediate support for the KLCI is back at 1500 while the immediate resistance is at 1532.
Meanwhile, the KLCI remains in its Triangle consolidation.
As shown on the chart above, the KLCI tested the Bollinger Middle Band, but failed to break above the Bollinger Middle Band. This suggests that despite the rebound, immediate technical outlook for the KLCI remains weak. Nevertheless, with the Bollinger Bands contracting again, the KLCI is expected to consolidate further.
As indicated by B, the Stochastic rebounded, and break above 30%, breaking away from its short term bearish territory. This is a signal suggesting a beginning of a short term technical rebound. If the Stochastic could break above 70%, it would be a short term bullish signal for the KLCI.
As indicated by C, total market volume increased 30.16%, and this suggests some improvement in the market participation. If volume could stay above the 40-day Volume Moving Average, the market sentiment as a whole is likely to improve.
In conclusion, the rebound on Tuesday has helped lifted the technical outlook a little, and if the KLCI could resume to above the 14, 21, 31 EMA, the KLCI would have a chance to resume its long term uptrend.
December 2010 fell 7.5 points to 1,492, January 2011 dropped 7 points to 1,493, March 2011 slipped 6 points to 1,494 and June 2011 went down 8 points to 1,491.
Volume declined to 5,349 lots from 6,491 lots last Friday while open interest was unchanged from last week’s 21,363 contracts.
On the cash market, the benchmark FTSE Bursa Malaysia KLCI slipped 4 points to close at 1,495.88 after opening 0.42 point lower at 1,499.46.
SESSION ACTIONS 20/12/2010
Monday, December 20, 2010
ZLBT Scan Chart Analysis continues positive longer term. Look for this market to remain firm. Strong Uptrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders.
Based on a pre-defined weighted trend formula for chart analysis, YM.H11.E scored +90 on a scale from -100 (strong downtrend) to +100 (strong uptrend):
Sunday, December 19, 2010
Saturday, December 18, 2010
Dow Eases Into Shorten Xmas Week
The Dow Jones Industrial Average (DJIA – 11,491.91) ate away at its deficit as the session progressed – and even made a brief foray into the black – but still gave up 7.3 points, or 0.1%, by the close. Just 13 of the Dow's 30 blue chips ended higher, led by Boeing and Kraft Foods, while American Express paved the path lower for the 17 declining equities. Despite today's modest retreat, however, the blue chip barometer remains comfortably north of trendline support, and tacked on 0.7% since the start of the week – the best of its peers.
The S&P 500 Index (SPX – 1,243.91) essentially called the session a wash, advancing 1 point, or 0.1%. For the week, the SPX gained 0.3%.
Friday, December 17, 2010
The S&P 500 Index 1,242.87) added 7.6 points, or 0.6%, rebounding neatly from support at its rising 10-day moving average. Finally, the NASDAQ Composite (COMP – 2,637.31) gained 20.1 points, or 0.8%, but the tech-rich COMP continues to encounter resistance near the 2,640 region.
“There are lots of things fluctuating our markets. It just seems like the fluctuating is going to the upside right now.”
Wall Street largely shrugged off concerns about FedEx, which reversed an early 2% slump that had been sparked after it badly missed estimates with non-GAAP EPS of $1.16. FedEx, which is seen as an economic bellwether did increase its guidance for its fiscal year, but the midpoint of the new range would trail expectations