Monday, 4th June 2012. The FBM KLCI stopped earning streak when it closed lower on previous Friday amid resurface concern over Euro debt crisis. Other news to follow.
"-U.S. stocks started the new month with more than 2% losses Friday, turning the Dow Industrials negative for the year and pushing the S&P 500 into correction territory, after a U.S. jobs report showed slim growth in May. The report, following downbeat data from China and Europe, raised serious concerns about the health of the global economy and sent investors running into Treasurys and gold. The Dow Jones Industrial AverageDJIA -2.22% fell 274.88 points, or 2.2%, to 12,118.57, its worst day since Nov. 9. The index is down 2.7% for the week and 0.8% for the year.
"-Most Asian markets declined on Friday as downbeat Chinese manufacturing data sparked worries about the global growth outlook, with Japanese stocks also hit as a strong yen pressured exporters. Japan’s Nikkei Stock Average JP:100000018 -1.20% fell 1.2%, while South Korea’s KospiKR:SEU -0.49% dropped 0.5% and Australia’s S&P/ASX 200 index AU:XJO -0.30% slipped 0.3%. In China, Hong Kong’s Hang Seng Index HK:HSI -0.38% lost 0.4%, while the Shanghai Composite CN:000001 +0.05% rose fractionally. The losses came after China’s official version of the manufacturing Purchasing Managers’ Index (PMI) declined to 50.4 in May, from 53.3 in April, well below forecasts. A separate PMI reading from HSBC fell to 48.4 in May, compared to April’s 49.3. "
FKLI- Some Retracement, Nothing To Worry About ?
The stock index and index futures closed lower on previous Friday as investors grew wary about the possible outcome if Greece is force out from the Euro zone. The fund needed or bail out will be speculate in nightmare proportion. On previous Fridaym, the FBM KLCI retrace about 7.08 points to 1,573.59 while June contract went down about 10.50 points to 1,570. Now we have some unpleasant economy data from China which directly pointing to upcoming slow growth on manufacturing activities and job market as well. Technically, market is retracing due to profit taking recently after it rallies swiftly up to 1,582 level. The Bulls definitely need some breather. For today, market is poised to open lower and continue to retrace due to weaker than expected stock index performance from Euro and U.S market. My initial assessment for major support level will be located around 1,560 based on previous horizontal trend line. If the market does rallies after retracing from the low (rebound from the support level, hopefully), price actions from hourly chart is likely create another higher lows.
Daily Pivot Point
R2= 1581
R1= 1575
S1= 1566
S2=1562
FCPO- Bears Strike Again
CPO futures continue its Sell-off streak amid recent weakness on commodities prices. All commodities known to be traded in the market is now affected. Not only that, we cannot even anticipate where is the bottom on this down trend. On previous Friday, the benchmark Aug closed RM95 lower to 3,006, day high and day low were 3,076 ~ 3,002 respectively. It seems that palm oil market is likely getting more beating from the weak commodities prices and there is nothing we can do to stop this Sell-off. The forces of supply and demand will determine where is the general market direction, while greed and fear will shape short to medium price volatility. Technically, the gains made early last week has been wipe off on the same week when the market dipped to 3,002 level. Bulls task to revive the price recovery will be impossible as investors are still haunted with record high palm oil stocks level and sluggish demand that seems refuse to pick up. Fundamentalist are still Bearish for commodity prices due to massive Long liquidation on May 2012, plus the weakening prices on commodities due to economy growth concern. Technical traders are prepared to follow the Selling spree if the market breach below support level. All these factors will add up the likely hood for the market to continue heading south. For today, support is located around 2,980 while resistance is pegged at 3,054.
Daily Pivot Point
R2= 3102
R1= 3054
S1= 2980
S2=2954
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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