Expect futures to trade higher today on the first day of the New Year. The Dow recorded a gain of 5.5 percent y-o-y, however the S&P finished the year flat. The general consensus for the coming year will be market turbulence with investors’ awareness immediately focused on the ongoing debt problems in Europe. On the home front, FBMKLCI gained 1.6 percent to end the year at 1530.73. Trading was subdued throughout the day, however window dressing activities towards market on close pushed the index up circa 20 points as it settled at its high. The banking sector led the charge with CIMB, Maybank and Public Bank amongst the top movers of the index. Attention is now on the January contract, which trades at a discount to the underlying cash of 9 points.
FKLI Technicals
December settlement price was 1511, up 3.6 percent for the month. Trading was very light as the December contract came to expiry, with investors turning their attention to the next active month. January contract gained 0.46 percent to finish the day at 1521.5 as the bulls gradually pushed prices higher throughout the day. Indicators look positive as futures trade well above its 200- day moving average and MACD continuing to diverge above its 9-day moving average. As such, support and resistance levels pegged at 1500 and 1530 respectively.
Overnight Leads
For the U.S. stock market, 2011 was a long wild ride to nowhere. The broad S&P 500 endured huge daily swings but a year of drama left the index almost where it started. It lost a mere 0.003 percent, closest to unchanged since 1947
FKLI Strategy ............
Aggressive trade may long with stop on below 1500.
HAPPY TRADING
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