Tuesday, March 13, 2012

Market Overview 14th March 2012

 Wednesday, 14th Feb 2012. Retreating from previous two weeks gain, stock index continue to trade slightly lower yesterday after moving in a tight range trading session. Other news to follow.

"- U.S. stocks leapt Tuesday, with the Nasdaq Composite finishing above 3,000 for the first time in 11 years, after J.P. Morgan Chase & Co. hiked its dividend, retail sales climbed and the Federal Reserve held rates at record lows. Reclaiming its perch above 13,000, the Dow Jones Industrial Average DJIA +1.68%   rose 217.97 points, or 1.7%, at 13,177.68, its biggest single-day jump since Dec. 20, 2011, and its highest level since Dec. 31, 2007. The Dow last closed above 13,000 on Feb. 28, its first finish above that level since the middle of 2008. The S&P 500 Index SPX +1.81%   added 24.87 points, or 1.8%, to 1,395.96, with financial companies rallying the hardest among its 10 sectors. Also topping a psychological milestone, the Nasdaq Composite COMP +1.88%   climbed 56.22 points, or 1.9%, to 3,039.88, its highest level since Nov. 15, 2000.The Nasdaq cleared 3,000 on Feb. 29, but failed to retain the level through the close. That last occurred Dec. 11, 2000. The Nasdaq hit its all-time high of 5,048.62 on March 10, 2000."

"-Asian markets rallied Tuesday as banks and commodity-linked stocks climbed on positive cues from U.S. equities, although Japanese shares gave back a bulk of their early gains after the nation’s central bank didn’t loosen its monetary policy further. Australia’s S&P/ASX 200 index AU:XJO +1.21% rose 1.2% to 4,247.60, South Korea’s Kospi KR:0100 +1.13%  advanced 1.1% to 2,025.04, Hong Kong’s Hang Seng Index HK:HSI +0.97% climbed 1% to 21,339.70, Taiwan’s Taiex added 1.3% to 8,031.51 and China’s Shanghai Composite Index CN:000001 +0.86%  edged up 0.9% to 2,455.79. The Nikkei Stock Average JP:NIK +0.09%  rose 0.1% to 9,899.08 in Tokyo, well off the day’s peak above the 10,000-point level."

"-Crude futures shook off early weakness to advance Tuesday, garnering some support from upbeat retail-sales report and holding to gains after the Federal Reserve’s statement.
Oil for April delivery CLJ2 -0.0094%  gained 37 cents, or 0.4%, to end at $106.71 a barrel on the New York Mercantile Exchange."

"-US soybean futures end higher, challenging last week's highs amid firm world prices and the need for adequate US soy acres in 2012. The focus of the market is shifting to new crop planting, but concerns about additional cuts to South American crop size generating fresh export demand, and that helped rekindle bullish momentum, analysts say. Firm cash prices underpinned futures as well. Soy products climbed in unison with soybeans, with traders regaining bullish outlooks on technical buying, firm overseas prices and optimistic outlooks for demand, analysts say. CBOT May soybeans ended up 14 1/4c at $13.48 3/4/bushel. May soymeal rose $4.00 to $366.10/short ton, and May soyoil ended up 0.91c to 54.87 cents/lb."

 FKLI- Still Awaiting Sign Of Recovery

The stock index ended slightly lower yesterday despite some promising recovery on regional indexes. Tight range trading session continue to haunt stock index as most investors still stay on sideline and awaits some positive indication or major news to make their next move. Fortunately, there was no sell-off on the index futures after it recover up to 1,574 level. The March contract closed marginally higher to 1,565.50 , the low for the day was 1,563 level. With correction mode is still progress, there is no telling for sure where might the retracement would end. Initial assessment for the major support would be place at previous low around 1,550 at the moment. Stay caution as there is no major correction ever since the market have recover from 1,300 level on Oct last year. Staying focus and vigilant are the key, keep an eye for Bearish formation such as lower high and lower low on hourly and daily chart. For today,  support is located around 1,556 while resistance is pegged at 1,578.

Daily Pivot Point
R2= 1578
R1= 1572
S1= 1561
S2= 1556

 FCPO- Uptrend Took Off Again

 CPO futures ended higher after retracing swiftly on previous Monday, mostly was supported by general hike on commodities prices. Commodities prices are rallying at the moment and this reason alone might limit prices on palm oil futures from falling steeply. The most actively traded Soya oil futures contract rose about 1.1% or 0.5950 cents to 54.55 cents per pound yesterday after retracing to 53.88 cents on previous Monday. Yesterday, the benchmark May is having a strong positive background when it quickly recover all of its previous losses on Monday. Apart from that, higher demand from export figures also supported palm oil prices to rise further. Technically, from the higher lows candles formed yesterday, the Bulls have returned and claim its rightful place. Short holder and counter trend traders are advised to be cautious as market tend to have stronger positive momentum after it survived from certain correction. With just inches for the benchmark May to form another higher high, medium term upside remain intact. For today, support is located around 3,334 while resistance is pegged around 3,400 level. 

Daily Pivot Point
R2= 3401
R1= 3383
S1= 3334
S2=3303Disclaimer: 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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