WALL STREET : Bears Re-emerge To Maul Bulls

Stocks Sink as Fed's Operation Twist Fuels Afternoon Sell-Off

After hemming and hawing just south of breakeven for most of the day, U.S. stocks took a decisive turn for the worse in the wake of the Federal Open Market Committee's (FOMC) highly anticipated policy statement. At 2:15 p.m. Eastern, a divided Fed unveiled "Operation Twist" -- a plan to shift its bond portfolio by selling $400 billion in shorter-term Treasury debt and buying longer-term Treasuries. In addition, the central bank -- unsurprisingly -- opted to stand pat on interest rates, and noted "significant downside risks to the economic outlook." The announcement was ill-received on Wall Street, to say the least, with the Dow Jones Industrial Average (DJIA) ending at a session low, and the CBOE Market Volatility Index (VIX - 37.32) -- otherwise known as the market's "fear barometer" -- tacking on more than 13% by the close.

After an early foray into the black, it was all downhill for the Dow Jones Industrial Average (DJIA – 11,124.84), which gave up 283.8 points, or 2.5%, by the time the bell mercifully rang. In fact, only Hewlett-Packard (HPQ) managed a win, adding 6.7% on reports that CEO Leo Apotheker might hit the bricks. On the flip side, Bank of America (BAC) led the 29 laggards with a 7.5% loss, thanks to a ratings downgrade at Moody's Investors Services.

The S&P 500 Index (SPX – 1,166.76) fared the worst of the three, surrendering 35.3 points, or 2.9%, to end beneath the 1,200 level for the first time in a week. Finally, despite solid tech-sector earnings, the Nasdaq Composite (COMP – 2,538.19) wasn't immune to the Street's wrath, swallowing a loss of 52.1 points, or 2%, by the close.

HAPPY TRADING 

Technical Charts / Commentaries : DJIA, FBMKLCI, FKLI

 DOW SURRENDER TRIPLE DIGIT GAINS

 After soaring as high as 11,550.22 in intraday trading, the Dow Jones Industrial Average (DJIA – 11,408.66) pared its lead to just 7.7 points, or about 0.1%, by the close. Sixteen of the Dow's 30 blue chips ended in the black, led by Home Depot's (HD) 1.3% gain, while Alcoa (AA) paced the 13 decliners with a loss of 2.9%. The shares of 3M (MMM), meanwhile, split the difference by finishing flat.

 

FBM KLCI IN A NUTSHELL

 Overall, the KLCI is still in the current decline in the KLCI to continue as long as 14, 21, 31 days EMA resistance line Difficult dynamic, then the KLCI's technical outlook will remain weak for. In addition, if the next KLCI continued support in 1400, then decline in the KLCI will help to avoid further deterioration, but then if the KLCI into the yaw of the consolidation pattern, it will dilute the market sell-off , when the KLCI to re-brewing movement. First, however, hinges on whether the rise in the KLCI breaking 14, 21, 31 days EMA of the dynamic resistance.

HAPPY TRADING & GOODLUCK2ALL

BSKL : All Round Weakness Prevails

FBMKLCI TO TEST 100% FIBO R SUPPORT - AGAIN
Immediate resistance for the FBM KLCI on an assumed technical rebound this week would be at 1,464, representing the 23.6% Fibonacci Retracement (FR) of the sell-off from the 1,597.08 record high of 11 July to the recent extreme low of 1,423.47 on 9 August, with next upside hurdles at 1,490 and 1,510, the respective 38.2%FR and 50%FR levels. 

A more formidable hurdle would be the 200-day moving average, currently at 1,526. On the flipside, the index must hold above the crucial pivot low support at 1,423.47, reinforced by 1,420, the 50%FR of up-trend from the 1,243 low of 27/5/10 to the 1,597.08 record high, to prevent deeper correction to 1,378, the 61.8%FR, with next significant retracement support at 1,327, representing the 76.4%FR.

The blue-chip benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI)
slumped 38.19 points, or 2.6% last week to settle at 1,430.93, with Sime Darby (-79sen), Tenaga (-28sen), CIMB (-18sen) and IOI Corp (-16sen) contributing to slightly more than half of the index’s loss. Average daily traded volume and value recovered mildly to 720.8mn shares and RM1.22bn respectively, compared with the 710mn shares and RM1.25bn average the previous week.

An oversold rebound imminent 
Spot month September KLCI futures contract traded on Bursa Malaysia Derivatives Berhad slid 31.5 points, or 2.16% for the week to 1,427.5, decreasing its discount to the cash index to 3.43 points, compared with the 10.1-point discount the previous Friday. Short-covering increased to lift the futures market as the index drew closer to the pivot low of 1,423.

GOODLUCK2ALL 

WALL STREET >>> DJIA Topples 11,400 with 4th winning streak.

Bulls Rally For 4th Victory

The Dow Jones Industrial Average (DJIA – 11,433.18) spent most of the session blazing a steady path higher, tacking on 186.5 points, or 1.7%, by the close. In fact, all 30 of the Dow's blue chips finished in the black, led by Bank of America's (BAC) 4% advance.

Dow Weekly Chart On The Move 

From this week Monday to Thursday perspective, the Dow is up an impressive 44.05 points or 4.01%. 

Recovery momentum is building slowly but surely. 

HAPPY MALAYSIA DAY 

Random Charts >>> DJIA, FKLI , FBM KLCI

HAPPY TRADING & GOODLUCK2ALL