Morning Dew - 11 September 2013

Key Points

• JCI soared nearly 4% on Tuesday, tracking gains from the Dow overnight and as economic data released last Friday had boosted the ailiing sentiment. Arms confiscation offer deal was also among the positive catalysts as war will be averted that way. Agriculture and mining stocks were hit however, as improving rupiah condition is seen negative for both sectors. The next big thing for the market will be the FOMC meeting which is expected to deliver its first reduction of stimulus, the prelude for higher rates in the US and eventually the world.
• JCI took out the resistance at 4206.95 rather easily and has been approaching its subsequent target at 4373. This was a key support which now turns into resistance, which is also within proximity of the wave equality target at 4383. Once JCI clears 4373-4383 the next hurdle will be 4563. Beyond the latter will suggest that the worst could've been over for the index. Downside, the index is expected to be well-supported at 4206.95.
• There's still no additions to the recommendations list, but so far the best performing reco is PTPP (+10.53%), followed by PGAS (+5.88%) and JPFA (+2.61%). ARNA and MDLN are still underwater with 1.14% and 1.47% declines, respectively. No change in view at the moment.

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