Morning Dew - 13 June 2013

Key Points

• After getting hammered to as low as 4510, JCI finally settled higher at 4697.88. This has not change the bearish outlook as the relief rally may be capped around 4720. Furthermore, the Dow has turned red once again, suggesting that external drag could send the JCI back to test its near-term support at 4510 and subsequently 4465-4444.
• Three top-flight banks are added to the recommendation pool: BBCA, BBRI and BMRI. While they are considered bargain deals at the current prices, we should remain cautious given the overall market condition.
• The market will assess the health of the US employment outlook once more as the jobless claims data is set for release on Thursday. The better the data, the more likely the market will think that the Fed is about to unplug its stimulus program.

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