Bargain Hunting May Lift Malaysian Stocks

Precision entry is vital
The Malaysian stock market has finished lower now in three straight trading days, plunging more than 75 points or 5 percent on its way to a five-month closing low. The Kuala Lumpur Composite Index finished just above the 1,470-point plateau, and now traders are looking for a modest rebound at the opening of trade on Wednesday.

The global forecast for the Asian markets is broadly positive, with bargain hunting expected to take hold following more than a week of brutal selling. Property stocks figure to attract plenty of interest at the current levels, along with steel, finance, airline and technology stocks. The European and U.S. markets finished firmly in the green, and the Asian bourses are expected to follow suit.

The KLCI finished sharply lower on Tuesday following heavy losses among the financial shares and plantation stocks, with more modest downside coming from the industrial issues.

For the day, the index plunged 24.85 points or 1.66 percent to finish at 1,472.14 after trading between 1,423.47 and 1,490.14. Volume was 1.896 billion shares worth 3.598 billion ringgit. There were 828 decliners and 159 gainers, with 179 stocks finishing unchanged.

Among the actives, Axiata Group, Maybank, CIMB Group, Sime Darby, Petronas Chemicals, IOI Corporation and Tenaga all finished lower, while Sanichi Technology was unchanged and Ranhill, Gamuda, UEM Land and DiGi.com ended higher.

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DJIA REBOUND BEFORE THE FINAL HOUR
The lead from Wall Street is finally upbeat as stocks showed a substantial upward move in late-day trading on Tuesday, although considerable volatility followed the Federal Reserve's latest monetary policy announcement. The Fed will leave interest rates unchanged at near-zero levels, adding that rates are likely to remain at exceptionally low levels at least through mid-2013.

The Fed also indicated that it now expects a somewhat slower pace of recovery over coming quarters than it did in June and said that the downside risks to the economic outlook have increased. While the central bank also said it discussed the range of policy tools available to promote a stronger economic recovery, it did not signal that it is likely to engage in another round of quantitative easing.

Bargain hunting likely contributed to the strength seen on Wall Street, with traders picking up stocks at reduced levels following the sell-off seen in recent sessions.

Meanwhile, traders largely shrugged off a report from the Labor Department showing that worker productivity fell by 0.3 percent in the second quarter compared to a revised 0.6 percent decrease in the first quarter. Most economists had predicted an even steeper 0.7 percent decline in productivity in the second quarter compared to the 1.8 percent increase that had been reported for the previous quarter.

The major averages saw further upside going into the close of trading, ending the session near their best levels of the day. The Dow jumped 429.92 points or 4 percent to 11,239.77, the NASDAQ surged up 124.83 points or 5.3 percent to 2,482.52 and the S&P 500 soared 53.07 points or 4.7 percent to 1,172.53.

In economic news, Malaysia will on Wednesday announce industrial production numbers for June, with analysts looking for a decline of 1.2 percent on year following the 5.1 percent annual contraction in May.

HAPPY INVESTING 

FKLI Bears Very Much In Control

Precision Rebound of an oversold FKLI
FKLI Volume for Aug contract hit record when it hit 27,202 lots traded in a single day, that would be a volume spike that you could expect to see when the market is turning around. Precision is the key of survival and most trading participants are expecting major market rebound after the market have been sell-off for few session.

In other words, you would most probably get whipsawed if you are loading Short positions when the market is rebounding. Trading strategies remain, Short when the market hit first  resistance level and hold it longer so you can ride the down trend, hopefully. 

Daily Pivot Point
R2= 1519
R1= 1489
S1= 1428
S2=1396

GOODLUCK2ALL

DJIA Swallows 634-Point Loss on S&P Downgrade

12 month gains wiped out in 12 days; VIX soars 50%
"Downgrade" was the word of the day on Wall Street today, as investors reacted to Standard & Poor's late-Friday revision to the U.S. credit rating. The major market indexes headed south right out of the gate, and selling pressure intensified as the session progressed -- despite President Obama's attempts to control the damage. "No matter what some agency may say, we've always been and always will be a triple-A country," Obama said, not long after the White House questioned S&P's math. As traders made a mad dash for the relative safety of gold, the Dow Jones Industrial Average (DJIA) steepened its triple-digit deficit to more than 630 points, while the CBOE Market Volatility Index (VIX - 48.00) -- also known as the market's "fear gauge" -- skyrocketed to its loftiest finish since March 2009.


The Dow Jones Industrial Average (DJIA – 10,809.85) swallowed its steepest loss since December 2008 today, giving up 634.8 points, or 5.6%, by the time the bell mercifully sounded. In fact, the blue-chip barometer ended south of the 11,000 level for the first time this calendar year, as not one of its 30 components eked out a win. Pacing the declining equities was Bank of America (BAC), which shed more than 20% amid reports of a legal battle with American International Group (AIG).


Meanwhile, the S&P 500 Index (SPX – 1,119.46) fared even worse than the Dow, backpedaling 79.9 points, or 6.7%, to end at its lowest level since September 2010. In the same vein, the Nasdaq Composite (COMP – 2,357.69) took the hardest hit of the major market indexes, plunging 174.7 points, or 6.9%, to end at its own year-to-date nadir.

HAPPY INVESTING

FKLI Morning Outlook 08/08/2011

Big Gaps For FKLI To Fufil
Technically, distribution phase is now visible with more and more lower high and lower lows formation on the daily chart.  With none promising higher low formation form so far, bearish momentum is likely to continue.

 Traders are advise to go Short if the market attempt to rallies approaching major resistance level. For today, support is located around 1,501 while resistance is pegged at 1,538 level.

Daily Pivot Point

R2= 1538

R1= 1532

S1= 1513

S2=1501

GOODLUCK2ALL

ZL's Ambiguous Weekend Charts

Crude oil futures ended a wishy-washy session in the black today
snapping a five-day losing streak. By the close, crude oil for September
delivery eked out a gain of 25 cents, or 0.3%, to end at $86.88 per barrel.
For the week, however, the front-month contract fell a whopping 9.2%
-- its heftiest week-over-week drop since the record loss of 14.7% in early May.

DJIA explored a range spanning more than 400 points today,
but settled 60.93 pointsor 0.54%, higher.
All but 10 of the Dow's 30 components ended in the black.

For the week, the Dow shed about 5.75%,
resulting in its lowest Friday close of 2011.

HAPPY WEEKEND