Morning Dew - 20 September 2013

Key Points

• JCI soared on the Federal Reserve's decision to do nothing on the stimulus. The index climbed over 4% while both LQ-45 and IDX30 were both ended the session up by more than 5%.Regionals were also up, as well as European stocks. For the Dow itself, the gauge fell 40.39 points or 0.26% lower, following a strong rally a day earlier.
• JCI managed to breach its key resistance at 4563 and arrived at 4791.76 before it settle down at 4670.13. After the jump, JCI now finds itself above the EMA curves, while its MACD and volume spiked higher. Resistance now lies at 4791.76, followed by 4917. Support on the other hand, is seen strong around 4563.
• Bernanke's decision to do nothing has pushed back the expectation of higher rates in the US. As the Fed chief wants to wait for a little while longer, his Fed presidency is going to end in 2014. His likely suceessor is Janet Yellen, the number two at the Fed right now. It is likely that Bernanke will make its first move before January.
• No change in view on the recommended stocks. Soaring JCI brought all five recommendations off the red zone with the LCGP hovers around its entry price while PGAS inched closer to its objective. Friday is seen positive but still capped after Thursday's rally. The index is prone to profit-taking, but downside pressure should be well cushioned at 4563.

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