MALAYSIA DERIVATIVES EXCHANGE >>> FKLI and FCPO

High Rolling FKLI Spot Speeding Towards Record Year End Close

Heavy rollover activities and spreads enable the Spot contract to close higher in tandem with the cash market.

FKLI is set to end the year on a strong footing

Recommendations (FKLI Dec)

BUY ON DIP / WEAKNESS

Place a stoploss for risk management

Suggested Target >>> 1550 >>> Cutloss 1522

CPO Snap 7-days Rally

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives retreated from their seven-day rally with traders taking profits after prices hit a fresh 33-month high yesterday.

At the close, January 2011 lost RM64 to RM3,781 per tonne, February 2011 shed RM53 to RM3,765 per tonne, March 2011 dropped RM45 to RM3,733 per tonne and April 2011 declined RM42 to RM3,708 per tonne.

Turnover increased to 11,599 lots from 10,730 lots recorded on Tuesday while open interest declined to 88,107 contracts from 88,309 contracts previously.

On the physical market, January South shed RM30 to RM3,780 per tonne.

HAPPY TRADING

BURSA MALAYSIA >>> Pre-opening Outlook 29/12/2010

Narrow Range Expected For Malaysian Shares
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.

HAPPY TRADING

Technical Anjalysis : 综合指数 2010年12月27日 / FBMKLCIO 27/12/2010

综合指数 2010年 12月 27日
如图中箭头A所示，富时综合指数基本上横摆，综指只微扬0.14点，以1511.72点闭市，所以综指当前的阻力水平不变，仍然维持在1532点的费氏线，支持水平则是1500点的心理支持关口。

如图所示，综指目前仍然处于由T1及T2趋势线组成的三角形内，这意味着综指目前正处于一个调整巩固格局中，所以T1亦是综指当前的动态阻力线，T2则是支持水平。

如图所示，布林频带（Bollinger Bands）打开2%，不过打开的幅度不大，所以虽然综指已处于布林中频带以上了，综指仍然未出现上扬的走势。一般上，布林频带必须明显的打开，再加上综指保持在布林中频带以上，综指才能确认出现上扬的趋势。

如图中箭头B所示，马股成交量减少7.43%，所以成交量继续的低于40天成交量移动平均线（VMA），这显示市场交投减少，不过这在综指横摆巩固时是正常的现象。

如图中箭头C所示，随机指标（Stochastic）继续在稍微高于70%的水平横摆，这显示综指的短期走势正处于偏强的格局，不过由于布林频带还未明显的打开，所以综指的短期走势仍然未大举上扬。
总的来说，综指目前正处于一个三角形的巩固状态，通常综指将继续目前的走势，直到综指突破此三角形为止：若综指上扬突破T1的趋势线，综指将有望恢复上扬的走势，反之若综指跌破T2的支持线，综指将有形成跌势的风险。

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.

HAPPY TRADING

MALAYSIAN DERIVATIVES EXCHANGE >>> FBMKLCI Futures

FKLI OUTDO FBMKLCI IN A HOLIDAY-MOOD MARKET

Spot Goes Premium Over Cash

FKLI prices remain lethargic and non-agressive ahead of the Xmas weekend which is the norm as most traders are already in celebrity frequencies. There may be little variations for both the cash & futures market but there is nothing bearish about their prices. Activities should resume when traders return after the holidays.

ZL have a feel >>> this is gonna be a dull & boring Friday. :P

Be optimistic of the bulls attacking the resistances next week. Whatever happens in Wall Street over night won't have much bearings on price fluctuations. Tight range trading anticipated. The EMAs should provide sufficient supports ahould the bears decide to launch a sneak attack when the bulls are out to celebrate. Any sudden dip in FKLI prices will been an opportunity to accumulate LONGs.

GOODLUCK2ALL

&

MERRY CHRISTMAS

WALL STREET Pre-opening >>> Waiting for Crush of Data, Futures Pause

Muted Actions Expected Ahead Of Shorten Week

Stock futures were little changed Thursday morning as Wall Street anxiously waits for the end of the holiday-shortened trading week and for a flood of new reports on the state of the economy.

As of 8.12pm (Malaysian Time) the Dow Jones Industrial Average futures rose 6 points to 11501, the Standard & Poor's 500 futures sank 0.20 points to 1234.30 and the Nasdaq 100 futures slipped 0.75 points to 2235.25.

Even though Thursday's session is expected to be a slow one due to the Christmas holiday, traders who do show up for work won't have a shortage of economic indicators to digest as the government squeezes a slew of data into the day
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.

Likewise, the Commerce Department is scheduled to give an update on durable goods orders, which measure purchases of big-ticket items like refrigerators. Economists expect orders declined 1.1% in November, compared with a decline of 3.4% in October. Excluding transportation, orders are expected to rise 0.8%.

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.

Meanwhile, Wall Street will have an opportunity to analyze two economic reports after Wednesday's open, headlined by the Commerce Department's new home sales index. Sales activity is expected to have increased in November from a rate of 283,000 annualized units to 300,000 units.

Consumer discretionary stocks like Ford and Macy's could be influenced by the December University of Michigan/Reuters consumer sentiment report, which is expected to be revised up from 74.2 to 74.8.

Global Markets
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.

In Asia, Tokyo's Nikkei 225 was closed for a holiday, Hong Kong's Hang Seng declined 0.62% to 22903.00 and China's Shanghai Composite lost 0.79% to 2855.22.

HAPPY TRADING