FCPO to hurdle higher

FCPO (15 mins chart)



FCPO has made a fair bit of consolidation for 3 days shedding approximately 280 points or 7.4% equivalent since the top of 3766. The consolidation has been countered with a fast pullback towards the 3630 amid stronger outlook towards CPO pricing. CPO immediate outlook is still strong while 3766 would be a key resistant to be taken over before spearheading to the next level. Cautious long is recomended where stops are to be place near the 3600 level.

Immediate Resistant : 3700

Immediate Support : 3630

FKLI to sideway until witnessing a Breakout

FKLI (15 mins chart)

The index futures recently  broke is downtrend line pushing the way off the critical selling zone. Upon then, the futures has been priced on a premium over the index (underlying). Amidst uncertainty on the economics forecast over the coming year while uncertainty in events over the tensions among countries lately could also create volatility in the market. Index futures hsa been performing considerably good but yet to claim over the previous high. Immediate outlook remain positive over the market.

Immediate Resistant : 1522.5

Immediate Support : 1485

FKLI to consolidate

FKLI (15mins chart)

Index futures has been consolidating along the downtrend line drawn. Immediate outlook on futures is to trade lower throughout the week with a trailing stop along the downtrend line. Regional outlook has been neutral to mere positive while futures pricing tend to observe the downtrend line in the near term. Longer term outlook still remain bullish.

Immediate Resistant : 1515

Immediate Support : 1495

FCPO strong throughout the week

FCPO (weekly Chart)

The benchmark price of crude palm oil(CPO) recorded a 4 days up and 1 day down throughout the week closing the week 3516 points, up 242 points, a 7.4% month on month. CPO prices has been heading higher month over month since the ascending triangle breakout on October. CPO are expected to remain strong and volatile at least in the near term amid agressive speculations. Open interest was higher compared to the week before signalling stronger outlook from the market players.

Resistant : 3550

Support : 3450

KLCI consolidates throughout the week on a healthy mode

FKLI (15 minutes chart)

The FKLI made a breakout of the consolidation on the 15 minutes chart. However, resistance is found at 1510 bringing prices lower and close at 1501 for the week. The short term downtrend line has been violated while it doesnt suggest a strong up trend ahead. However, overall sentiment is relatively upward bias though.

Immediate resistant : 1510

Immediate support : 1492

FKLI (weekly chart)

A longer term outlook on the index futures signal that consolidation still remain as an option amid the previous strong upward momentum. The medium term uptrend line has yet to be violated therefore reserve the option for a downtrend in near term.

FBMKLCI and futures on consolidation

FBMKLCI (daily chart)

FBMKLCI been consolidating after the recent run up weeks ago. There is no clear sign whether the FBMKLCI would do a breakout in the near term just yet. FBMKLCI is expected to mingle within the range of 1478 and 1500. Immediate support stood at 1478 and a psychological resistant stood at 1500.

FBMKLCI (15 minutes chart)

FBMKLCI has been giving way to the downtrend line amid a healthy correction on previous run up. Lower highs are being observed while lower lows are yet to dominate the scene. It is being suspected that a descending triangle could form as time passses and a breakout would be seen in near future.

Immediate support : 1476

FKLI (15 minutes chart)

Index futures(FKLI) has been observing the range and trades within the high 1488.5 and low of 1470.5. A descending triangle is seen to be forming. A breakout upon the descending triangle would trigger new open interest in the market.

Immediate Resistant : 1502, 1508

Immediate Support : 1482, 1467

Failure for FBMKLCI gain momentum on the upside.

FBMKLCI (15 minutes chart)

FBMKLCI has been in the negative territory throughout the day after Dow recorded a loss of 39.51 to close at 11052.49. FBMKLCI close day low at 1485.23 recording a loss of 10.72 points reversing 0.72% of the market cap. Among the biggest loss in % on the index linked counters are YTLPOWR, MAYBANK and PPB with a loss of 1.98%, 1.96% and 1.65% respectively.

A new downtrend line emerge as prices extends. The new downtend line seem to still be intact although it has been tested over and over again for the past few days.

Immediate support for FBMKLCI is viewed to be at 1476 at this juncture.

FKLI (15 minutes chart)

FKLI opened low amid Dow's overnight weak performance and traded below yesterday's closing throughout the whole day. December futures traded 6.5 points discount over the spot month future where the spot month future settle at 1488.5. Immediate support is to lie at 1467.5 where breaking this low would probably attract new selling interest.

Immediate resistance : 1502, 1508

Immediate support : 1482, 1467 

FBMKLCI to expect further upside

FBMKLCI (15 minutes chart)

FBMKLCI closed dramatically higher with a 4.5 points jump upon closing to close at the positive territory. FBMKLCI has been trading at the negative territory throughout the whole day to only entered the positive territory at the last quote during closing. Stocks to contribute to such closing is attributable to Sime, UMW and Petgas to close at their respective day highs.

*FBMKLCI seem to broke the immediate downtrend line at least for the short term outlook.

FKLI (15 minutes)

Futures been trading in the positive territory during the afternoon session amids the positive sentiment which kicks in as dow futures improve over the afternoon session. December futures (next month) surpasses spot month contract here and then amid speculation towards better index pricing upon going through the November month.

Resistant : 1508

Support : 1482

*FCPO also improves about 3% amid speculation on stronger demand.

FBMKLCI and Index futures testing resistance

FBMKLCI (15 minutes chart)

FBMKLCI made a short recovery after an approximate drop of 30 points 2 days back. FBMKLCI recovered 20 points from its low of 1476.82 to close at 1496.49 today. Turnover for the day is about 1.4B throughout the day and is still seen in line with the short term down trend line. However, a sharp pullback since the low of 1476 could mean market to be relatively strong and reluctant to navigate lower.

FKLI (15 minutes chart)



The Spot Index Futures made a relatively drastic recovery off the low of 1467.5 to close at 1499.5 today. The futures manage to close above the downtrend line due to mainly short covering due to a slight change of market sentiment. Asean indexes made a slight recovery as tension in the Korea eases.

Immediate resistant : 1508
Immediate support : 1482

DJIA likely consolidating.

Dow Jones been consolidating recently at a considerable rate after a recent run up which last about 2 months has brought the index up about 1400 points. It has not been going through any consolidation since then till now. A healthy retracement would suggest a 50% retracement to about 10700 point level.
Amid recent issues on tension in the Korea borders as well as various sovereign debt issues, the index has been holding quite strong at the immediate support though. A breakdown at 11000 points would trigger new selling pressure and bring it down to the next immediate support.

Support is currently stood at 11,000 , 10,850 and 10,700 respectively.
Resistance is currently stood at 11,250 and 11,450 respectively.

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1 American Capital Agency Corp. (Nasdaq: AGNC) yield: 19.03
- American Capital Agency Corp. (AGNC) is a real estate investment trust (REIT). AGNC earns income primarily from investing in residential mortgage pass-through securities and collateralized mortgage obligations.

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- Annaly Capital Management, Inc. (Annaly) owns, manages and finances a portfolio of real estate related investment securities, including mortgage pass-through certificates, collateralized mortgage obligations (CMOs), agency callable debentures, and other securities representing interests in the obligations backed by pools of mortgage loans.

3 Hatteras Financial Corporation (NYSE: HTS) yield: 15.36
- Hatteras Financial Corp. is an externally managed mortgage real estate investment trust (REIT).

4 Anworth Mortgage Asset Corpora (NYSE: ANH) yield: 14.57
- Anworth Mortgage Asset Corporation (Anworth) is in the business of investing primarily in United States agency mortgage-backed securities (MBS), which are obligations guaranteed by the United States government.

5 Magic Software Enterprises (Nasdaq: MGIC) yield: 14.49
- Magic Software Enterprises Ltd. develops, markets, sells and supports an application platform and business and process integration solutions.

6 Capstead Mortgage Corporation (NYSE: CMO) yield: 14.25
- Capstead Mortgage Corporation (Capstead) operates as a self-managed real estate investment trust (REIT).

7 IncrediMail, Ltd. (Nasdaq: MAIL) yield: 13.64
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8 MFA Financial , Inc. (NYSE: MFA) yield: 11.45
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Top 20 U.S stocks based on market cap

Among the top 20 market cap in the US. The consumer sector and informational sector dominates the list. The list was updated on 20th September 2010.

Bets on inflation to be high in United States

Traders are betting that inflation will heighten due to FED's move to avoid deflation. United States government bonds had been sold at an effectively negative rate of return for the First Time.


*Commodities is preferred if the condition persist.

Stocks to look at (Home Depot, NYSE : HD)

The Home Depot, Inc, a home improvement retailer. Home Depot sells an assortment of building materials, home improvement and lawn and garden products and provide a number of services. As of January 31, 2010, it had 2,244 The Home Depot stores located throughout the United States, including the Commonwealth of Puerto Rico and the territories of the United States Virgin Islands and Guam (U.S.), Canada, China and Mexico.

The stock is recently form a support and currently challenging the 32.00 resistant level. A significant breakout above the 32.00 level would call for a buy on the stock. Support at 26.50 and resistant at 32.00.

FCPO made new high of the year

The above is the 15 minutes chart of active FCPO. A break and solid close above the previous high (2970) has brought signal that the FCPO still remain bullish. Speculation has been strong that prices will hit higher so do expectation of some researchers claiming that CPO supply will increase significantly next month which contradicts each other. We are not as concerned as those of the longer term players like hedgers of the upstream or even downstream users of CPO. Having long term view is not really our concern though. As for now, preferred position is to be hold long. Immediate resistant will be the key 3000 psychological resistance. Immediate support stood at 2940 for now.

The basics of Technical Analysis

FCPO dramatically closes up 170 points (approx 6%)

FCPO Active Month Daily Chart

The FCPO implies a breakout above 2800 where it gaps up on the last trading day with an approximate 140 points (5%) to open at 2903/mt. FCPO prices is expected to journey higher although Ringgit would be expected to remain strong. Any means of a weakening of RM would possibly trigger another hike in palm oil prices due to increase price competitiveness in the global market.

Index made new High after recent consolidation

FBM KLCI daily Chart

The above KLCI chart clearly shows that the FBM KLCI successfully closed above 1481 making a new year high after a recent week of consolidation. This is a strong sign that the market could be heading higher. Current immediate resistant would be at 1496 and 1500 correspondingly. Immediate support lies at 1450 and 1442.

Benchmark index being dragged by Digi(6947) causing lost of approx 7 points in the index.

The index futures and benchmark index has been on the positive territory throughout most of the day. However, a late sell down on Digi(6947) which is belief to be a mistake causes the respective stock to fall as much as 3.50 which contributes to a 14% lost in market cap. The fall in Digi also brought to a drop on the index of about 7 points in the index. However, overall build up on the futures suggest a pullback on a support. Overall market is still considered strong while breakdown at 1460 and below would potentially lead to more selling interest.

Immediate support is at 1460 and immediate resistant remain at 1480.

FCPO likely approaching greater heights

The above Palm oil active month chart has showed that palm oil has been consistently trying to break the 2750 strong resistant level. The strong resistant has been tested over and over for about 5 times since May last year. A slight increase in open interest while maintaining at such strong resistance suggest that a major breakout in on the way as the bulls and bears are quite confident with their respective position. Either side losing the battle would mean a strong move on the FCPO  pricing.

Overall, FCPO is still awaiting a breakout from the rising wedge. immediate support lies at 2700 while immediate resistant is at 2760 respectively.

Index Futures on consolidation

The above is the FKLI chart featuring consolidation through MACD. MACD made a downward cross on 23rd September attracting new short interest in the futures. However, this consolidation would consider healthy to cater for a rest in the market since the upward move begins for about a month ago of about 10% of index points.

Overall outlook for the index futures is of a mix of whether it is a mere consolidation or a potential top formed a week ago.

United Envirotech bags contract for Phase 1 building of wastewater recycling plant in China for $29.5m

Mainboard-listed United Envirotech, one of the leading membrane-based water and wastewater treatment solutions providers, says it has secured a contract to build and operate a 160,000 cubic metres/day wastewater treatment and recycling plant in Hegang City, Heilongjiang province, China, for a concessionary period of 30 years.

The BOT project will consist of two plants both slated for completion over two phases.

Phase One of the project will comprise the building of the wastewater treatment and recycling plant with treatment capacity of 80,000 cubic metres/day to be completed by next October.

Together with the construction of common facilities, the total cost of investment for Phase One is estimated to be RMB145 million ($29.5 million).