Market Overview 5th Dec 2011

Monday, 5th Dec. Stock index ended positive on weekly basis, surpassing major resistance level and regaining promisingly as investors took advantage over improving condition over European debt crisis. Other news to follow.

"-The Dow Jones Industrial Average DJIA -0.0051%  fell 0.61 point, or 0.01%, to close at 12,019.42, reversing course in the final minutes of trading after touching a high of 12,146.68 during the session. The benchmark index was up 7%, or 787.64 points, on the week, to score its largest weekly point gain since the week ending Oct. 31, 2008, and the second biggest weekly point gain in its history. The Standard & Poor’s 500 Index SPX -0.02%  shed 0.31 point, or 0.03%, to end at 1,244.28, with health care down the most and financials leading the gains among its 10 major sectors. Up 7.6% on the week to end a four-week losing streak, the Nasdaq Composite COMP +0.03%  edged up 0.73 point, or 0.03%, to finish at 2,626.93."

 "-Asian stocks ended mostly higher, as hopes rose for strong results from the key U.S. jobs report due out later in the global day. Japan’s Nikkei Stock Average JP:NIK +0.54%  rose 0.5%, and Australia’s S&P/ASX 200 index AU:XJO +1.41%  rallied 1.4%. Hong Kong’s Hang Seng Index HK:HSI +0.20%  turned around late in the session to end 0.2% higher, helped by gains for bank shares, but the Shanghai Composite Index CN:000001 -1.10%  — which closes trade an hour earlier — failed to catch the updraft and ended with a 1.1% loss. South Korea’s Kospi KR:0100 -0.0073%  closed flat. "

"-Oil futures gained Friday, taking weekly gains to 4.3% after seesawing for most of the session as investors were sidelined ahead of an euro zone summit next week. Crude oil futures for January delivery CL2F +0.92%  advanced 76 cents, or 0.8%, to end at $100.96 a barrel on the New York Mercantile Exchange. That was oil’s highest settlement since Nov. 16."

"-US soybean futures bounced, fueled by traders adding some risk premium ahead of the weekend. Despite favorable growing weather in Brazil and Argentina, the uncertainty of future weather on South American crops limits sellers from being too aggressive. Drier longer range weather outlooks from private forecasters raise enough concern for traders to protect against risk, particularly with world end user growing more dependent on South American supplies, says Chad Henderson, analyst with Prime Ag Consultants. CBOT Jan soy ended up 7 3/4c at $11.35 3/4/bushel. Soy product futures ended mixed, with traders unwinding spreads ahead of the weekend. Soyoil futures gained a larger percentage of the value of the US soybean crush, as demand for global vegoils and solid domestic demand from the biodiesel industry underpinned soyoil futures, analysts say. CBOT Jan soyoil ended up 0.55c at 50.25 cent/lb, and Jan soymeal ended down $0.70 at $288.30/short ton."

FKLI- Closed Strong For The Week.


The FBM KLCI edged higher yesterday amid recent positive news regarding U.S federal reserve commitment to aid European Union on their debt troubles. The cash composite gained additional 3.76 points to 1,489.02 while index futures manage to rose another 10 points to 1,504.50, the high for the day was 1,505 level. Stock index ended the week with at least new 4 weeks high, wrecking most of the major resistance place before them. No soul would know the mild recovery that turn out to be massive rallies few days after that could sustained last week. Most traders might think most gap in the Futures market will be fill eventually, but bear in mind that it may not happen that soon if the sentiment in regional stock market remain Bullish at the moment. Some analyst were talking about market is creating a new uptrend based on last week 40 points gap up in the index futures but that is the event which can only be told by "time." It is not a traders focus to find out how much a trend or a movement can go, but it is better to train to "re-act" to the market after it has happen. Being re-active  in the market is how to ensure your survival in the long run. Technically, for medium term the Dec contract is likely continuing it's upside momentum this week judging from the huge 10 points premium vs cash composite. But for this near term, index futures is susceptible to retrace slightly after gaping up viciously last week. If this event materialize, expected strong support will be locate around 1,483 level.

Daily Pivot Point
R2:1515
R1:1510
S1:1494
S2:1483

FCPO- Still Trapped Within The Range.


CPO futures inches up slightly as traders remain neutral on the recent encouraging news on regional equity market. Most traders prefer not to relate commodities performance with stock market as it does not provide consistent correlation between these two different instruments. Unless there was a big improvement / sell-off on the equity market which involve more than 4% movement, it is likely going to effect most commodities prices eventually. On previous Friday, the benchmark Feb merely rose about RM4 to 3,062 after hovering within 3,075~3,035 level throughout the trading session. Market still ended in negative territory on weekly basis. Technically, the benchmark Feb is poised to hover within 3,078~ 3,025 level unless it manage to breach either one of these range. If one of this condition occur, palm oil futures is expected to recover further if the upper range @ 3,080 breach while further downside risk is imminent if the benchmark Feb manage to break down below immediate support level or lower range @ 3,025 level. For today, immediate support level is located around 3,039 level while resistance is pegged at 3,039~3,080 level.   


Daily Pivot Point
R2:3097
R1:3079
S1:3039
S2:3017

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.