Monday, December 12, 2011

Market Overview 13th Dec 2011

 Tuesday, 13th Dec. The FBM KLCI settled higher on recent European Union accord that bringing more aid and measures to avoid massive debt crisis from happen. Other news to follow.

"- U.S. stocks fell hard Monday as doubts about a recent Europe accord and a lowered outlook by Intel Corp. spurred a broad retreat after two weeks of gains. The Dow Jones Industrial Average DJIA -1.34%  closed down 162.87 points, or 1.3%, to 12,021.39, trimming losses in the last hour of trading after sinking 243 points. The S&P 500 Index SPX -1.49%   shed 18.72 points, or 1.5%, to 1,236.47, with energy companies and financial firms taking the biggest losses of its 10 industry groups, all of which closed lower. The Nasdaq Composite COMP -1.31%  dropped 34.59 points, or 1.3%, to 2,612.26."


"-Most Asian markets advanced Monday, with exporters and commodity-linked stocks among the notable gainers, as an agreement by European leaders to overcome the region’s debt woes provided a lift to investor sentiment. Japan’s Nikkei Stock Average JP:NIK +1.38% climbed 1.4% to finish at 8,653.82, Australia’s S&P/ASX 200 index AU:XJO +1.19%  rose 1.2% to 4,252.80 and South Korea’s Kospi KR:0100 +1.33%  added 1.3% to 1,899.76. China’s Shanghai Composite CN:000001 -1.02%  lost 1% to 2,291.54 on worries about the nation’s slowing economy, and in particular, weakening exports to Europe. That helped weigh on Chinese shares listed in Hong Kong, sending the Hang Seng Index HK:HSI -0.06%  0.1% lower at 18,575.66 after trading mostly higher during the session."

 "-Crude-oil futures fell 1.7% Monday, settling at their lowest in more than two weeks as investors doubted the recently announced measures to staunch the euro zone’s debt crisis would be enough, and the dollar also rallied. Crude for January delivery CL2F +0.03%  declined $1.64, or 1.7%, to settle at $97.77 a barrel on the New York Mercantile Exchange, off session’s lows but at their lowest since Nov. 25."

"- US soybean futures end higher, shunning the bearish influence of external financial markets, as bargain hunting emerges after prices dipped to new 14-month lows. The ability of the market to find price support is an indication of some export pricing occurring beneath the market, says John Kleist, analyst with ebottrading.com. After prices slumped to a new low, the market may have drummed up new business, and with lingering concerns about South American weather, traders were unwilling to aggressively pressure prices, Kleist adds. CBOT Jan soy ended up 5c at $11.12/bushel, well off the session low of $10.95. Soy product futures ended mixed, with soymeal gaining value versus soyoil in the crush spread. Soymeal bounced with soybeans, while soyoil was unable to drum up fresh buying amid spillover weakness from crude oil futures, analysts say. CBOT Jan soymeal ended up $2.60 at $279.50/short ton, while Jan soyoil dropped 0.28c to 49.32 cents/lb."

 FKLI- Down Trending

 Stock index closed higher yesterday amid some temporary positive re-action over the development on European debt crisis over the weekend. Asian regional benchmark were closed mixed on yesterday closing bell as U.S Dow Jones futures suddenly turned the wheel and headed south, dropping over 80 points on 5.15pm +8GMT. Doubt and fear on long term European countries debt recovery, most investors would not hold their positions overnight on Derivative market, prompting heavy profit taking activities on the afternoon session. Technically, we are likely to see some ranging movement throughout today trading session, major resistance will be expected close to the resistance trend line (shown on chart above) while support is likely located around previous low level @ 1,448.

Daily Pivot Point
R2= 1486
R1= 1476
S1= 1458
S2= 1450

FCPO- Bulls Are Mauled And Left To Die. 

Yesterday might be the worse news ever break on FCPO Long holders as most of them would unwind or closed off their positions due to significant Bearish price performance. Continuing what might have happen for the past one week, the Bears were dominating the market yesterday, leaving no casualties behind. Most Bulls were definitely slaughtered and those Long covering activities would have just worsen yesterday sell-off. As a result, at close the benchmark Feb dipped about RM86 to four weeks low at 2,998. Both technical and fundamental aspect suggest that palm oil prices are likely continue to slump as there is no significant positive news to support price from falling. Demand and Soya oil performance (prices) were still weak. For benchmark Feb, the Bearish Marubozu candle formed on daily chart plus a small gap down yesterday clearly justify how the market has turn from bullish to Bearish. In other words, the impending recovery that mentioned on previous week post has been eliminated, there is less chance for the market to reverse into Bullish trend anymore, at least not so soon. For safer entry, traders can opt to go Short if the price approach resistance point. For today, support is likely located around 2,949 while resistance is pegged at 3,042.  

Daily Pivot Point
R2= 3087
R1= 3042
S1= 2973
S2= 2949
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.

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