Tuesday, February 7, 2012

Market Overview 8th Feb 2012

 Wednesday, 8th Feb 2012. Stock index continue to make new progress on recent recovery by surging above the weekly range again. Bursa Derivative will be resume for trading today and we are optimist to see some decent upside to continue today. Other news to follow.

"-U.S. stocks rose Tuesday, sending the Dow industrials to their highest close since 2008, as Greece reportedly neared accord on budget cuts, job openings rose in America and the Federal Reserve kept to its low-rate stance. The Dow Jones Industrial Average DJIA +0.26%  rose 33.07 points, or 0.3%, to 12,878.20, its highest close since May 19, 2008. It had reversed higher early in the session after falling as much as 62.56 points. The S&P 500 index SPX +0.20%  gained 2.72 points, or 0.2%, to 1,347.05, with utilities leading the gains and natural-resource stocks the greatest laggard among its sectors. The Nasdaq Composite Index COMP +0.07%  advanced 2.09 points, or 0.1%, to 2,904.08."

"- Australian shares skidded lower after the central bank there surprised markets by leaving its policy rate unchanged against widespread expectations of a reduction, while Japanese stocks were pressured by some weak earnings reports. China’s Shanghai Composite CN:000001 -1.68%  dropped 1.7% to 2,291.90 and Japan’s Nikkei Stock Average JP:100000018 -0.08% slipped 0.1% to 8,917.52. The S&P/ASX 200 index AU:XJO -0.51% erased early gains to finish 0.5% lower at 4,274.2 in Sydney after the Reserve Bank of Australia left its policy rate unchanged at 4.25%, while Hong Kong’s Hang Seng Index HK:HSI -0.05%  fell 0.1% to 20,699.19."

"-Crude futures shook off initial weakness to settle at their best in one week, rising 1.6% on Tuesday, gaining as Greece reportedly neared a deal that could avoid a messy default and drag the world economy down with it. Crude for March delivery CL2H +0.30%  rose $1.50, or 1.6%, to settle at $98.41 a barrel on the New York Mercantile Exchange. It earlier traded as high as $99.13 a barrel and as low as $95.84 a barrel."

"-US soybean futures ended slightly lower, with prices hovering near unchanged levels for most of the day. Positioning ahead of Thursday's USDA reports after prices rallied for five straight trading days produced a choppy atmosphere, analysts say. Beneficial rains in South America and stability in the cash market applied pressure to prices, while declines in the US dollar and general strength in broader commodity markets provided offsetting support, analysts say. CBOT March soybeans ended down 1c at $12.32/bushel.Soy product futures end mixed, with soyoil continuing to gain value in the crush vs soymeal. Traders are unwinding long meal/short soyoil spreads, consolidating positions on fears of slower meal demand amid poor margins for livestock and South American rains expected stabilize crop yields there, analysts say. CBOT March soymeal ended down $2.10 at $325.40/short ton; March soyoil ended up 0.01c to 52.17c/pound."

FKLI- More Room For Upside. 

 Most regional market were traded slightly higher while our market is closed for public holiday. Personally, I felt that there is too much holiday in Malaysia in Feb month, and it might not be a good event (maybe it just me). We have some interesting event occur on previous Friday, both of the indexes just explode and rose above the weekly range after some correction on early previous week. The FBM KLCI ended the week with 1.68 points higher to 1,538.77 while the Feb contract surge 14.50 points or 0.95% to end at 1,538, just off 4 points from the high. Usually, most instrument that went through some minor correction and rallies are susceptible to have stronger positive momentum behind it. This is due to aggressive accumulation that is likely took place when the market retrace and also signifies that Bears could push the price lower than it should be. Similar incident happen here when the Feb contract surge above the weekly range after coming up from previous correction. We are just 62 points from breaching the all time high at 1,600 level and judging from current market condition that rumored with upcoming general election plus positive indication on the U.S market ( Dow Jones rose to at least 3 years high recently), it is not that far to materialize. Conclusively, medium term upside momentum remain intact while we are expecting some minor or mild correction along the way on this recovery. For today, support is locate around 1,525 while resistance is pegged at 1,554.

Daily Pivot Point
R2= 1554
R1= 1546
S1= 1525
S2= 1512

FCPO- Inbound Recovery Amid Strong Gain On Soya Oil Futures. 

 CPO futures ended higher on previous Friday amid strong rebound on Soya oil after falling steeply due to demand concern. With Soya oil recovering above 52 cents per pound recently and giving the certain degree of relativity (or some people call it correlation), palm oil futures is poised to recover further this week. Although we might not expecting a full scale recovery yet, we are looking at 50 points upwards from 3,085 level. Technically, this recovery is likely turn out to be a temporary pull back on Bearish market due to it's rival oil gains plus downward sloping on four o'clock 34 period EMA tunnel. But be prepare for reversal role if the price manage to create higher low and higher high formation (at least on hourly chart). Palm oil prices are having substantial dilemma currently as demand eroded and stocks level remain at record high, but susceptible to rise amid Soya oil rebounded for the last two sessions. For today, support is located around  3,061 while resistance is pegged at 3,108 or higher.

Daily Pivot Point
R2= 3108
R1= 3096
S1= 3061
S2= 3038

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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