Monday, December 5, 2011

Market Overview 6th Dec 2011

 Tuesday, 6th Dec. The FBM KLCI closed slightly unchanged as investors prefer to stay at the sideline awaiting more convincing news and financial improvement over European debt development. Other news to follow.

"-U.S. stocks on Monday ended higher as Wall Street held out hope for a European summit later in the week after nerves were again shaken by headlines related to Europe’s debt crisis. After rising 167 points, the Dow Jones Industrial Average DJIA +0.65%   ended at 12,097.83, up 78.41 points, or 0.7%. The S&P 500 SPX +1.03%  rose 12.80 points, or 1%, to 1,257.08, with financial firms leading sector gains and health-care companies lagging. The Nasdaq Composite Index COMP +1.10%  gained 28.83 points, or 1.1%, to 2,655.76."

 "-Asian shares traded mostly higher Monday, as investors hoped for progress in curbing Europe’s debt crisis in what could be a crucial week for the troubled region. Hong Kong’s Hang Seng Index HK:HSI +0.73%  finished 0.7% higher, Japan’s Nikkei Stock Average JP:NIK +0.60%  rose 0.6%, South Korea’s Kospi KR:0100 +0.36%  traded up 0.4%, and Australia’s S&P/ASX 200 AU:XJO +0.78%  rose 0.8%. The Shanghai Composite Index CN:000001 -1.16%  bucked the regional trend, however, losing 1.2%. Some encouraging signs for Europe emerged over the weekend, as Italy outlined a 30 billion euro ($40.2 billion) three-year austerity plan ahead of a key meeting of French and German leaders planned for later Monday."

"- Crude futures posted only a modest gain Monday, retreating from a high above $102 a barrel after the Financial Times reported that Standard & Poor’s has warned six European nations that they risk having their triple-A ratings downgraded. Crude futures for January delivery CL2F -0.40%  closed at $100.99 a barrel on the New York Mercantile Exchange, up 3 cents."

"-US soybean futures finished lower, retreating from early gains on poor export demand and outside pressure. Early gains fueled by optimism about Europe's debt, but enthusiasm waned and commodities fell on reports S&P is putting Europe's triple-A countries on downgrade watch. Weekly soybean export inspections were disappointing, and traders say South American weather, while dry, is not yet a major problem for the crop. CBOT Jan soybeans end down 9 1/2c to $11.26 1/4 a bushel, down 20c off day's highs. Dec soymeal ended down $5.30 to $281.10 per short ton while Dec soyoil holds steady amid flat crude oil prices, ending up 0.02 cents to 50.07 cents/lb."

 FKLI- Pull Back Imminent 

 Stock index was traded unchanged yesterday while regional index ended mixed despite Italian Prime Minister Mario Monti proposing US$38 billion in fresh taxes and spending cuts as part of efforts to ease pressure on its government bond markets. Such news was totally ignored which may due the efficiency of the market itself. Maybe Asia major benchmark are focused more on the performance of U.S stock indexes generally, most of the time ? Fortunately as a trader, that might be your last concern as figuring out other market correlation and your trading strategies does not related at all. Technically, what has happening for the past three session on the index futures and stock index were, no follow thru Buying activities after the market gaped up previously. What we can tell from here is the "gap up and crap" incident, and market is susceptible to retrace the longer the time it take to move upwards. For today, unless we have better than expected performance on overnight U.S stock indexes, index futures is likely to retrace to second pivot support level while resistance is pegged at 1,506 at the moment.

Daily Pivot Point
R2= 1506
R1= 1501
S1= 1491
S2=1486

 FCPO- Alright Price Break Out Form Upper Range

CPO futures surged and managed to closed above 3,100 level yesterday, marking the indication for further recovery after it retrace about 250 point previous last two weeks. The MPOB stocks, productions and export data will be eyed closely at the end of this week as traders are gauging the effect on this recovery if the report does come out negative than expected. Apart from that, palm oil futures is likely getting some positive support if Soya oil continues to perform positively due to favorable demand. At close, the benchmark Feb rose about RM60 to 3,122, it went as high as 3,133. Technically, the benchmark Feb have breached the upper range / resistance level at 3,080 yesterday. Palm oil market is expected to recover further judging on the strong closing value plus increased volume and open interest (when the market surged) for the benchmark Feb. We shall expect more and more upside momentum or confirmation if the benchmark Feb continue to breach the daily pivot resistance, soon. For today, support is located around 3,089 while resistance is pegged at 3,166.  

Daily Pivot Point
R2= 3166
R1= 3144
S1= 3089
S2=3056
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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