Wednesday, December 16, 2009

Market Outlook 16122009

Good morning, it seems that the economy recovery that every one is talking about in the west is no joke. There are confidence figures that support this event and also the strengthening of dollar does give the signal that recovery is still imminent.
-The dollar traded near a two-month high against the euro amid prospects the Federal Reserve will withdraw stimulus measures amid signs the U.S. economic recovery is gaining momentum.
 -U.S. stocks fell for the first time in five days, led by financial shares, on concern that share sales, future interest-rate increases and credit-card delinquencies will weigh on earnings at lenders. Stocks also declined as reports on wholesale prices and industrial production spurred concern the Federal Reserve will unwind stimulus measures.
-Soybeans prices rose to a two-week high on increasing demand by Chinese importers and U.S. processors. Soybean futures for March delivery rose 0.25 cent to close at $10.62 a bushel on the Chicago Board of Trade, after reaching $10.7475, the highest price since Dec. 1.
-Oil traded near $71 a barrel in New York after rising for the first time in 10 days on a report that U.S. factories churned out more goods in November than anticipated, a signal that fuel demand will increase. Crude oil for January delivery rose $1.18, or 1.7%, to settle at $70.69.
FKLI Daily Chart

Alright, now we all know Dollar does give inverse effect to equity and commodities market, and furthermore the Fed is also considering to relax some stimulus package agreed earlier and the worse part is they might going to increase interest rate. I think it does more harm to the market than help it growth. Sure the economy is recovering but if you did something to mess it up it would stop growing. Momentarily, I still opt to wait n see how our market re-act to it.

FCPO Daily Chart

I believe that we may found important support level around 2,490, it will provide a barometer for anyone that consider to LONG for medium term trade. I am still bullish on CPO as I think as there is potential for price to go up further.

Disclaimer: The author is not liable for any loss incur due to this write up and trade recommendations made by this websites.

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