Market Overview 16th Feb 2012

 Wednesday, 16th Feb 2012.  Stock index continue to show no sign of fatigue by ending at new monthly high yesterday along with regional index. Other news to follow.

"- U.S. stocks closed broadly lower Wednesday, deepening losses throughout the session as a mix of unease about rescue funds to Greece and Federal Reserve comments quashing hopes for more easing took some steam out of a four-month rally. With liquidity "the name of the game," headlines about no-more QE3 "may have been an excuse for profit-taking," said Michael Gibbs, chief equity strategist at Morgan Keegan. The Dow Jones Industrial Average DJIA -0.76% lost 97.33 points, or 0.8%, to 12,780.95. The S&P 500 SPX -0.54% fell 7.27 points, or 0.5%, to 1,343.23. The Nasdaq Composite COMP -0.55% lost 16 points, or 0.6%, to 2,915.83."

"-U.S. soy futures rally, ending higher on Brazil crop worries and Chinese export demand. Fresh export sales, the third straight day of sales, buoyed the market and added to optimism stemming from a Chinese delegation's U.S. visit, where another export announcement was expected. Declining crop prospects for Brazil are behind the improved outlook for U.S. business, traders say. Prices surge to a four-month high, though gains were trimmed as corn and wheat prices retreated. Soybeans' recent gains could mean more U.S. acreage this spring, traders add. CBOT March soybeans end up 6c to $12.61 per bushel. March soyoil ended up .33c to 53.35 cents/lb, and March soybean meal gained $2.70 to $3.328 per short ton. "

FKLI- Not Yet Giving Up Gains. 

 Stock index continue to edge up higher with some promising accumulation activities still going on blue chips as local economy outlook remain solid for this Dragon year. Even though Malaysia is not excluded if there is any external shock or down turn occur on other major market, it is still safe to say our financial exposure is not  greatly related to Europe and America. But that is not the reason for any of us to get sloppy on trading, whether you like it or not in trading business we must at all time prepare to expect adverse condition to happen. At close, the FBM KLCI closed 3.23 points higher to 1,566.05 while Feb contract gained one point to closed at 1,559.50. Technically, I am not looking at massive retracement to occur soon as both stock index and index futures are still doing very well sustaining their gains. Conclusively, no sign of danger or correction sign yet for the Bull to continue sailing north. For today, support is located around 1,554.50 while resistance is pegged at 1,667.50.

Daily Pivot Point
R2=1567.50
R1= 1563.50
S1= 1554.50
S2= 1549.50


FCPO- New Weekly High But Without Upside Confirmation Yet.

 We would not know whether a big upside or down side move until it has moved that way. The only thing we can do to ride any favorable move is by entering it when the risk of ruin (for that trade) is the lowest. If you can enter any trade at lowest risk possible, the chances for you to be profitable will be greatly enhance more than fifty percent.  And to achieve all this, it require skills, knowledge and above all, personality. Your results will reflect what kind of personality you are in the market. Believe me, skills, knowledge and other elements that you might deem fairly important are useless if you do not know yourself or your personality. Misplaced hope and fear are among the best enemy for any traders out there and they hate to talk about it when anything goes wrong. But that is for trading psychology and this write up is too short for that topic.
Back to CPO futures, the benchmark Apr rose at least 5 weeks high yesterday when it closed exactly at the high of 3,205 level. Blowing off most resistance by surging more than expectation in the late afternoon session, most Short holders who do not wish to carry their positions overnight covered their Short positions and at the same time provide the afterburner for the price to surpass 3,200 level. Unfortunately, it is still early to confirm whether this upside momentum will last for this coming week as price will remain resilient below 3,270 judging from previous three months high. For more promising upside confirmation, the benchmark Apr need to overtake at least one previous high level above 3,250 and followed by 3,270. For today, upside momentum is likely continue amid positive recovery from the Soya oil which rose to 53.03 cents per pound during Asia trading session yesterday, 6.30pm +8GMT. Support is located around 3,171 while resistance is pegged at 3,221 followed by 3,283.

Daily Pivot Point
R2= 3283
R1= 3221
S1= 3171
S2= 3138

 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.