Wednesday, February 8, 2012

Market Overview 9th Feb 2012

 Thursday, 9th Feb 2012. FBM KLCI rose above 1,550 for the first time this year after paving some corrections due to European debt fear few months ago. Other news to follow.

"-U.S. stocks ended with mild gains on Wednesday, capping a day of wavering mostly lower after a news report that Greek had a draft plan that includes a 20% cut in its minimum wage. The Dow Jones Industrial Average DJIA +0.04% added 5.75 points to 12,883.95. The S&P 500 Index SPX +0.22% rose 2.91 points to 1,349.96. The Nasdaq Composite COMP +0.41% advanced 11.78 points to 2,915.86."

 "- Asia markets rose Wednesday, with sentiment helped by optimism for a Greek debt deal, and with an upbeat outlook from Toyota Motor Corp. supporting car-maker shares in Tokyo.

Both South Korea’s Kospi KR:0100 +1.12%  and Japan’s Nikkei Stock Average JP:100000018 +1.10%  closed with a gain of 1.1%, and Hong Kong’s Hang Seng Index HK:HSI +1.54%  climbed 1.5%.
Australia’s S&P/ASX 200 index AU:XJO +0.39%  rose 0.4%, while China’s Shanghai Composite CN:000001 +2.43%  gained 1.6%."

"-Crude-oil futures inched higher Wednesday after a weekly government inventories report showed a smaller-than-expected increase in supplies, but they trimmed gains throughout the day as the official data contrasted with a trade group’s earlier report of a steep decline. Light, sweet crude for delivery in March CL2H +0.01%  rose 30 cents, or 0.3%, to settle at $98.71 a barrel on the New York Mercantile Exchange. It traded as high as $100.09 a barrel earlier, but shed away most of its gains as the session progressed. It traded as low as $98.17 a barrel. "

"-US soybean futures ended slightly lower as traders consolidated positions ahead of Thursday's USDA crop reports. Prices struggled to find direction amid trader unwillingness to take on risk ahead of the data, which will give updates on US demand and South American production. Mild pressure was derived from a stronger dollar and crop-enhancing rains moving through South American growing areas. CBOT March soybeans ended down 1/2c at $12.31 1/2 a bushel. Soy product futures end mixed, with soyoil futures continuing to gain value in the crush spread vs meal. Traders are unwinding long soymeal/short soyoil positions, with soyoil garner support from firm crude oil prices and optimistic outlooks for increased demand for soyoil used in biodiesel production, analysts say. CBOT March soyoil ended up 0.41c to 52.58c/lb, and March soymeal ended down $3.70 at $321.70/short ton."

FKLI-It Is Going Up, This Time Is For Real.

 Stock index rose to at least 3 months high yesterday with re-new optimism that the equity market is likely discover reason to recover even more. At close, the FBM KLCI rose about 14.41 points or 0.94% to 1,553.18 and the Feb contract surge 10.50 points or 0.68% to 1,548.50 level. Both instrument rose with substantial increased in volume plus open interest for the equity derivative. The value transacted on equity market has tripled yesterday, with over 3.2 billion worth of shares transacted. To sum up, what happen yesterday was heavy accumulation on both stock index and index futures judging on substantial increment on share's value and volume as well. Technically, we are likely looking on revived uptrend after the market recovered series of steep correction previously (from 1,600 peak to 1,300 in 6 weeks). Positive momentum is likely to remain judging on series of higher lows and higher highs formation formed on daily chart plus together with some healthy corrections along the way. With most incident and believes that occur in any trending market, most trend that survived series of steep or major corrections (major pullback or rebound if in a down trend) and recovered more than 70% from it is likely to rallies stronger. In another words, it is like a re-new eagerness and optimism to get  back into the market. Conclusively, it is not a fantasy anymore for the market to reach 1,700 this year !!

Daily Pivot Point
R2= 1557
R1= 1552
S1= 1542
S2= 1536

 FCPO- Trend Reversal To The Upside  ?

CPO futures continue to surge amid promising recovery on Soya oil prices yesterday. It was not an ordinary recovery as the benchmark Apr rose about RM70 or 2.27% to 3,155 level while Soya oil rose about  0.41 cents to 52.58 cents per pound during Asian trading session yesterday, 6.14pm 8GMT. I am somewhat puzzled what actually drive the palm oil futures to rise aggressively and the closest thing I can relate was Soya oil price recover that occur during previous Monday and Tuesday (when Bursa Derivative was closed for holiday). Although this is not a solid proof or assessment to indicate further upside momentum for this week, I believe that the benchmark Apr has done enough to prove that yesterday session was dominate by Bulls. Not only that, the benchmark Apr also manage to breached above the weekly resistance trend line (white color) shown above, signifying substantial Buying activities throughout the trading session. As long as the Soya oil continue to stay above 51.50 cents per pound, we are likely to see the benchmark Apr to sustain above 3,100 level this week. For today, support level is located around 3,117 while resistance is pegged around 3,200.

Daily Pivot Point
R2= 3195
R1= 3175
S1= 3117
S2= 3079

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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