"-The U.S. stock market ended Monday’s volatile session lower, as an unabated fall in oil prices continued to erode investor confidence. Traders attributed wild swings in the indexes to a combination of factors, including ‘quadruple witching’ event — the week during which various index futures and options expire, unwinding of large positions by funds and uncertainty surrounding crude oil prices which resumed their slide after a brief rebound. The initial bounce in oil ahead of the regular market open prompted a rally in European stock markets. But as crude fell to new lows, the mood turned gloomy, with major exchanges finishing lower. Dow Jones Industrial Average jumped more than 100 points shortly after the market open but ended 100 points, or 0.6%, lower at 17,180.84. The S&P 500’s traded in a 29 point range, but ended 12.60 points, or 0.6% lower at 1,989.63. Utilities and financials were the biggest decliners, while all 10 sectors finished with losses. The energy sector began the day sharply higher, but ended 0.8% lower."
FCPO- Still Going Nowhere For Trend
Palm oil futures is not making any good sign yet in terms on running on any trend. Less and less sign of where it is going to head next. Export for 1-15th Dec vs Nov 2014 was reported slightly positive with just about 2% to 3% higher. Put the news aside, most of us know medium to long term traders are having very hard time since November 2014 which there is no promising trend to ride. Market quickly return to stubborn range when it hit new high or new low, and it kept repeating this incident more than sixth times in a row. Who to blame ? I rarely sees this is anyone's fault but rather unavoidable market condition that can occur over and over again without us knowing it early on. There is no way to tell either any of the trend trades would work or not, you would just have to execute it and find out. The only we can reduce or minimize losses within this ranging market would be not to trade at all or being super picky about taking a trade and trade significantly less. Other way would be waiting for more confirmation such as going into the trade later than usual, but that also would not stopping any trader from getting losses. A successful trade will be how well that trader can exploits the market condition at that particular time and execute his/her plan due diligently. Back to palm oil futures outlook, we are still travelling within a flexible range within 2,300 and 2,100 for the moment. I doubt the benchmark month would move with conviction after it hit a new high or new low for this year. We will be likely looking at no strong movement throughout until Jan or Feb next year. For today, pivot support for the new benchmark March will be 2,149 while resistance is pegged at 2,183.
Daily Pivot Point
Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.