Morning Dew - 30 September 2013

Key Points

• Doubts concerning the start of Fed's tapering as well as the budget debate in Washington were the two major catalysts weighing on the JCI last this week. The index ended 3.5% lower, positioning it back below the EMA envelope on the daily chart, which is viewed as negative for the coming week outlook. Nevertheless, the downside is also seen limited as bad news have been mostly out, leaving the only risk coming from budget showdown at Washington.
• Among key data set for release next week are the China Manufacturing PMI for September, US ISM for both manufacturing and non-manufacturing sectors in September, and as usual, the nonfarm payrolls for September. In addition, some Fed speakers are also scheduled to be held. Bernanke, Yellen, Stein, and Powell are set to speak and the market will search for fresh clues over the timing of the Fed's beginning of its tapering.
• There is no change in view on the active recommendations. So far, only MDLN and PGAS are giving positive results. MLPL is the worst performer so far as it trailed 6.33% off its entry point while ARNA got down 3.41% at the moment. No new additions of recos for now.

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