Morning Dew - 10 October 2013

Key Points

• JCI scored another gains on Wednesday as BI kept its rates on hold while news that Obama may agree for a short-term debt limit increase without policy conditions also lifted up the mood. The market also cheered the news that Obama will nominate Janet Yellen as Ben Bernanke's successor at the Federal Reserve. In Asia, Nikkei climbed while Hang Seng index slumped. As we approach October 17th the market will gradually drift back to the downside.
• JCI technicals remain positive for now as the index maintained its climb into the EMA band between 4435 to 4515. Near-term, resistance stays at 4515 while support comes in at 4435. Below 4435 we will risk a move back towards the double bottom at 4357-4358 and subsequently, 4313/4314 ahead of 4207. Improving volume as well as MACD turned back to positive are favoring for the upside.
• LCGP, MDLN, and PGAS continue to stay in the green while ARNA, MLPL, AISA and ACES remain stuck in the red. There is no changes in view but added into the pool is CLPI which recently booked a very impressive rally. The stock is favored for buying between 690-750 with the target set at 1000 and stop set below 580.

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