Morning Dew - August 30th 2013

Key Points

• JCI gained for the second day in a row, reaching as high as 4103 and settled there until the session ended. The upside for now is capped by 4107, but somehow is set to be tested on Friday. Beyond 4103 we will see 4261 and 4373 to become the index's strong resistance. Alternatively, on the downside the low at 4026 is now the nearest support for the index while 3837 being the key support. Improving technical tools suggests that we may see another green day this Friday. Below 3837 we still have 3400 and 3698
• US stocks gained slightly after economic data released on Thursday showed that GDP climbed 2.5% (annualized), beating the consensus of 2.2% increase as well as initial reading of 1.7%. Meanwhile, jobless claims fell 6k further to 331k from 337k. Consensus had expected claims to have fallen to 332k. Elsewhere, the prospect of US' Syrian military intervention dropped after both UK and France opted to wait for UN investigation over the matter. There is no change in view that the Fed will start to reduce its stimulus in mid-September. On the domestic front however, BI rate has been raised to 7% from 6.5%.
• JPFA and PTPP have joined the pool of recommended stocks after both saw sudden decline and recovery on Thursday. PGAS and JPFA now in the neutral side while ARNA and MDLN stay in the red. PTPP is the only one gaining with 6.32% increase. For Friday, we are more likely to get some fluctuations among JCI stocks as the Dow's finish overnight had failed to impress.

Click here to download the full update (PDF)