Sunday, April 8, 2012

Market Overview 9th April 2012

Monday, 9th April 2012. The FBM KLCI erase previous session loses by recovering on last Friday while most Asia market were closed for Good Friday holiday. Other news to follow.

"- U.S. stock futures turned sharply lower on Friday, while Treasury prices surged after data showed a much smaller-than-expected growth in U.S. nonfarm payrolls in March. The U.S. economy added 120,000 jobs in March, the smallest increase in five months, the government reported Friday. Up 22 points before the data, futures on the Dow Jones Industrial Average DJM2 -1.06% were recently down 85 points to 12,893. Futures on the S&P 500 stock index SPM2 -1.17% fell 10.10 points to 1,380.1 and Nasdaq 100 futures NDM2 -1.13% dropped 18.25 points to 2,735. The U.S. stock market is closed Friday in observance of the Good Friday holiday."

"- Japanese shares fell for a fourth straight day Friday on a return of fears about European sovereign debt problems and as a firmer yen weighed on shares of exporters, while mainland Chinese shares gained for a third straight day after a choppy session. Japan’s Nikkei Stock Average JP:100000018 -0.81% fell 0.8% to 9,688.45. China’s Shanghai Composite CN:000001 +0.19%  rose 0.2% to 2,306.55 and South Korea’s KospiKR:0100 +0.01%  ended little changed at 2,029.03, after both benchmarks changed direction a few times. Taiwan’s Taiex XX:Y9999 +0.87%  climbed 0.9% to 7,706.26, finishing higher for the first time in four days. Trading volumes were modest, with markets in Australia, Hong Kong, India and Singapore among those closed for the Good Friday holiday. Investors were also cautious ahead of the U.S. nonfarm payrolls data for March later in the day, although U.S. markets are also due to be closed for Good Friday."

"-CME market is closed on Friday for Good Friday holiday. "

FKLI- Resilient Trading Range. 

Stock index and index futures manage to recover after retraced for the past two session previously as investors grew wary about slowing down economy activities on China. Asia market is showing sign of slower pace growth and most of the economy analyst think it could be a normal economy cycle and not a structural problem. Even though the economy appear gloomy, regional stock market does not closely correlate to this condition as they are still traded on higher ground. A perfect example has to be our local stock index which manage to rose to historical high above 1,600 level last week, little it reflect any economy slow down on Malaysia economy at the moment. Technically, the index futures is still susceptible for a major correction as it does not rise to a safe location as shown as hourly chart above. Market need to stay above 1,600 level as something else could be forming if the index stay longer below 1,600. Bear in mind that the market has rose without any major correction since Oct last year and they could use some any time soon. For today, support is located around 1,587 while resistance is pegged at 1,602.

Daily Pivot Point
R2= 1602
R1= 1598
S1= 1591
S2= 1587

FCPO- Upside Took Off Again

CPO futures went up again on last Friday amid promising closed on Soya bean and oil futures on CME. Before the CME closed for Good Friday holiday, the active traded Soya oil was traded 0.56 cents higher or 1% higher to 56.58 cents per pound. It was rather a fast come back for the palm oil futures break out above the congestion area and recovered up to 3,607 level on last Friday. Uptrend on palm oil futures continue to strengthen supported by positive broader commodities prices as well. At last Friday close, the benchmark June rose to 3,604. Technically, last week sentiment was won by Bulls but it was not an easy task as there was time when market went into congestion for at least three session before the Bulls finally come back to restore the uptrend. It could be a different story if the price have breach below the lower from the congestion area where market is susceptible for further correction if it does that. Note that resistance is always futile if the market is heading on uptrend as new high is always bound to be created. Nonetheless, traders are warn that market could gap down or hover lower due to unexpected palm oil data plus CME was closed on previous Friday. For today, support is located around 3,575 followed by 3,546 while resistance is pegged at 3,620 followed by 3,636.

Daily Pivot Point
R2= 3636
R1= 3620
S1= 3575
S2= 3546
 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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