Wednesday, June 19, 2013

All Systems Green 19th Jun 2013

Wednesday, 19th Jun 2013. Ohh yes, all system is green for Buying as most stock index and commodities market are showing promising signs of recovery.

"-U.S. stocks on Tuesday extended strong gains into a second day as Wall Street embraced what's expected to be soothing words from Federal Reserve Chairman Ben Bernanke. "When they [the Federal Open Market Committee] see sustained improvement in employment conditions, that's when they will do something about reducing their asset purchases," Hugh Johnson, chairman of Hugh Johnson Advisors in Albany, N.Y., said of the central bank's $85 billion in monthly bond purchases. "We're not close to that yet, that comes in the fourth quarter of 2013 or the first quarter of 2014, that's when you can expect the Fed possibly to begin to taper," he added. Extending its streak of triple-digit moves into a sixth session, the Dow Jones Industrial Average gained 138.38 139.15 points, or 0.9%, to 15,318.23. The S&P 500 index SPX +0.78% rose 12.77 points, or 0.8%, to 1,651.81. The Nasdaq Composite COMP +0.87% gained 30.05 points, or 0.9%, to 3,482.18. "

"- Stocks in Japan and Hong Kong ended with small losses after a choppy trading session Tuesday, as investors pondered whether the U.S. Federal Reserve will maintain its monthly bond purchases. Mainland Chinese and South Korean shares rose after also charting a volatile course that saw them change direction multiple times. Japan’s Nikkei Stock Average JP:NIK +2.04% and Australia’s S&P/ASX 200 AU:XJO +0.45% each slipped 0.2%, while Hong Kong’s Hang Seng Index HK:HSI -0.34%  ended fractionally lower. On the upside, China’s Shanghai Composite CN:SHCOMP -0.90% rose 0.1%, Taiwan’s TaiexXX:Y9999 +0.55%  gained 0.2% and South Korea’s Kospi KR:SEU -0.49%  added 0.9%."

 "-U.S. crude supplies dropped by 4.3 million barrels for the week ended June 14, according to data from the American Petroleum Institute issued late Tuesday. A Platts survey of analysts forecast a 1 million-barrel decline. Gasoline inventories increased by 900,000 barrels, while distillate stockpiles dipped by 600,000 barrels. Analysts were looking for a rise of 1.2 million barrels in gasoline inventories and an increase of 300,000 barrels in distillate supplies. The API data come ahead of the more closely watched U.S. Energy Information Administration report due Wednesday. Ahead of the API report, July crude CLN3 +0.01% rose 0.7% to settle at $98.44 a barrel on Nymex. After the report, the contract advanced in electronic trading to $98.62."

"-July Soybeans finished down 1 3/4 at 1510 3/4, 19 1/4 off the high and 3/4 up from the low. November Soybeans closed up 4 1/4 at 1289 3/4. This was 7 1/4 up from the low and 6 1/2 off the high. July Soymeal closed up 2.7 at 451.8. This was 1.8 up from the low and 7.3 off the high. July Soybean Oil finished down 0.03 at 48.81, 0.19 off the high and 0.1 up from the low. The soybean market traded higher for most of the session but the July/Nov broke lower late in the day which helped support the new crop market. Early support for the July contract was linked to the supportive NOPA crush report from yesterday. Cash bids in the interior processing markets are beginning to ratchet higher as processors attempt to stem supply to meet sales commitments. The USDA reported this morning that US private exporters sold 240,000 tonnes of soybeans for the 2013/14 marketing year. A well-known oilseed analyst estimated today that the US will import around 250,000 tonnes of soybeans in June and July of this year. This would be a new record if achieved. Logistical issues in South America continue to keep a supportive undertone to the market but more exports into the US are expected from Paraguay as well as Brazil. Some even suspect that meal may be imported from Argentina later this summer."

FKLI- Leaping Into Gains From Previous Sell-Off

Lets recap what happen last week when the spot month contract came crashing the weekly support level around 1,756 level. Market went into a frenzy and panic sell-off condition that made the Jun contract to ease down to 1,735 level but things quickly change right after that. Few traders would anticipate the market would steadily recover after the market took a plunge last Thursday and recover the next day. And it is even less traders would have the courage the go Long when the market is dipping. Whether the traders positions around that period of time, it is crucial to decide where you should stop or exiting your positions even though the trade is favouring you. Market is most likely travelling within a range most of time. The different is whether the range is Bullish or Bearish bias or just flat. Technically, the Jun contract is likely travelling within the Bullish range at the moment judging from the new higher low formed last Thursday. It is a tricky situation to confirm whether this Bullish formation will continue to stay this month as any swift sell-off this week will force the current Bullish candle formation to Bearish candle formation such as lower high and lower low. The key for current month trading theme would be "survive." Day trading will be a good start to survive this volatile market. Stock market is likely getting some support from external major market such as U.S. The Federal Reserve will likely come up with QE decision tonight, Wednesday 19th Jun 2013. For today, pivot point support for Jun contract is located around 1,760 while resistance is pegged at 1,778.

Daily Pivot Point
R2= 1778
R1= 1772
S1= 1760
S2= 1753.5

FCPO- More Singns Of Long Term Uptrending Shown.

Palm oil futures has once again shown it true colour, at least it happen yesterday. Another Bullish price confirmation occur when the benchmark Sept manage to beached above three months high around 2,480 level. Leaving just 20 points to reach the 2,500 psychological resistance, the Sept contract retrace on late afternoon session as profit taking kicks in. At close, the benchmark contract rose RM7 to 2,466, volume was recorded 43% higher while open interest was recorded slightly lower. There are a lot of interest to sustain this upside momentum as market participants are anticipating higher demand for palm oil products due to Ramadhan festive season. Price outlook automatically gets better when there is major restive seasons around the world and this year Ramadhan will not be an exception. Technically, most of the hints are pointing upwards for the moment judging from Sept contract higher lows and higher highs candle formation formed yesterday when the Sept contract gained up to 2,480 level. Short term play for today would be Buying on weakness if the market open 20 points lower or go Short if the market open around yesterday high @ 2,480 as a 14 points or higher gap up will invite traders to Sell on resistance. This week, pivot support for Sept contract is located around 2,440 while resistance is pegged at 2,492.

Daily Pivot Point
R2= 2492
R1= 2479
S1= 2453
S2= 2440

 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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