Thursday, March 28, 2013

Nothing To Stop Bulls Keep Charging On Stock Index 28th March 2013

Thursday, 28th March 2013. Nothing is going to stop the Bulls from charging the stock index as market is rallying to at least 9 weeks high now. Other news to follow.

"- U.S. stocks surged Tuesday, lifting the Dow Jones Industrial Average to a record and the S&P 500 Index less than 2 points from its all-time closing high, following economic data that showed improvement in home prices and manufacturing. The Dow Jones Industrial Average DJIA -0.23%  advanced 111.9 points, or 0.8%, to 14,559.65. The S&P 500 SPX -0.06%  climbed 12.08 points, or 0.8%, to 1,563.77, leaving it 1.38 points from its all-time closing high set in October 2007. The Nasdaq Composite COMP +0.12%  rose 17.18 points, or 0.5%, to 3,252.48."


"- Asian markets advanced Wednesday as solid cues from Wall Street helped investors look past Europe-related worries, with Hong Kong stocks getting a lift from a clutch of better-than-expected earnings reports. Australia’s S&P/ASX 200 AU:XJO -0.15%  finished 0.9% higher and Hong Kong’s Hang Seng Index HK:HSI +0.69%  rose 0.7%, while China’s Shanghai Composite CN:000001 +0.16% rebounded 0.2% after a sharp decline the previous day.
Reversing early losses, Japan’s Nikkei Stock Average JP:NIK -0.85% ended 0.2% higher, and South Korea’s Kospi KR:SEU -0.09%  added 0.5%."
"-  Oil futures settled above $96 a barrel on Tuesday to score their highest close in five weeks, with optimism over energy demand fed by a jump in U.S. durable goods orders. May crudeCLK3 +0.09% rose $1.53, or 1.6%, to end at $96.34 a barrel on the New York Mercantile Exchange. "

"-May Soybeans finished up 5 1/4 at 1453, 4 3/4 off the high and 9 1/2 up from the low. July Soybeans closed up 4 1/2 at 1431. This was 9 3/4 up from the low and 3 off the high.
May Soymeal closed up 2.9 at 423.1. This was 4.1 up from the low and 1.3 off the high.
May Soybean Oil finished up 0.01 at 50.83, 0.2 off the high and 0.23 up from the low. May soybeans traded higher on the day in light volume as traders positioned ahead of tomorrow's Grain Stocks and Planting Intentions report. The trade expects planted acreage to come in near 78.35 million acres, up from 77.2 in 2012/13. March 1st stocks are estimated to come in near 948 million bushels, down from 1.374 billion in the same period last year. The high end of the trade estimates comes in near 1.06 vs. the low end of 900. Interior basis bids for soybeans were firm today which helped support the Gulf export market as supply pipelines drew thin. The recent slide in futures prices has shut down any new farmer sales. South American weather remains mixed with a dry pattern extending into Argentina but showers are possible this weekend or into early next week which should help late planted soybeans. Brazil harvest is about 60% complete but supply chain disruptions have kept export shipments since January 1st behind year ago levels."

FKLI- Come On Lets Go Higher. 

If you are still re-acting based on news alone, you probably ending up Shorting the market because there was plenty of negative news on EU, i.e: Cyprus financial set back, uncertainties over Italy political development and most relevant of all, the disoltion of Malaysia parliament. Unfortunately, the news on parliament disolution has regarded as old and insignificant at the moment. The concern over political chaos and social unrest prior to the Malaysia general election has subsided significantly, nad the proof you can witness it from the recent recovery on stock index. Shorting the market is not a good idea at the moment as market does not showing any sign of stopping this rally yet. It is a trend, an uptrend in medium term perspective when the spot month manage to breach above previous resistance / high level at 1,668. Index futures have every reasons to go up with the support from its underlying asset, the FBM KLCI. Stock index is happily hovering on positive momentum for the past three sessions, wiping out almost all important resistance levels. Short holders have every reasons to fear now because there is no sign of stopping yet for this rally after it has breach another important resistance level at 1,668 yesterday. Maybe, just maybe you can expect for some mild retracement to 1,658 level on April contract amid its overbought reading for this week. Other than that, the market still have many room to rally.

Daily Pivot Point
R2= 1687
R1= 1679
S1= 1658
S2= 1644


FCPO- Trapped Within Ranging Session 


Palm oil futures is having some tough time staying afloat 2,460 level as it keep retracing from the high on closing session. Bulls are still hesitating, they still cannot have a smooth journey up north yet. Majority trading participants are expecting weaker palm oil export data due to release next Monday. Which may bring us, Bearish fundamental outlook for this week. But this Bearish external outlook maybe counter if the Soy oil May contract manage to sustain higher gains above 51.00 cents per pound. Otherwise, the benchmark Jun is likely hovering within 2,466 to 2,429 this week, trapping within the first lower high / resistance level and support trend line shown on hourly chart above. Upside potential will be magnified if the benchmark Jun manage to breach above 2,466 resistance level. For medium term, the Jun cotract is expected to resume its preceding uptrend if it did not breach below support trend line around 2,426 level. Most of the uptrend possibilities would be greatly jeopardize if the export data come out weaker than expected next Monday. Overall, palm oil futures is preparing for positive momentum based higher lows and higher highs made on daily chart.

Daily Pivot Point
R2= 2485
R1= 2466
S1= 2429
S2= 2411


 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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