Thursday, June 6, 2013

FKLI Trapped Within Range, FCPO Darn Resilient 6th May 2013

Thursday, 6th May 2013. The index futures still trapped within ranging market, pending to break either direction and it has staying there for far too long. FCPO is likely having a volatile session this week. Other news to follow.

"- U.S. stocks tumbled on Wednesday for a second session as data on U.S. private-sector job growth darkened views of the monthly nonfarm-payrolls report to be released in two days. In its worst session in more than a month, the Dow Jones Industrial Average DJIA -1.43%lost 216.95 points, or 1.4%, to 14,960.59, with Intel Corp. INTC -2.60%  pacing declines that included all of its 30 components. The Nasdaq Composite COMP -1.27%  fell 43.78 points, or 1.3%, to 3,401.48. For every share rising, four fell on the New York Stock Exchange, where 738 million shares traded. Composite volume approached 3.6 billion."

"- Japanese stocks rebounded Tuesday to take back some of the steep losses they suffered the previous day as banks and several beaten-down shares rallied in the wake of overnight gains on Wall Street. Other Asian markets ended mixed, after enduring wide swings between gains and losses as strong cues from U.S. stocks were countered by concerns over China’s growth trajectory. In Japan, the benchmark Nikkei Stock Average JP:NIK +0.71% rose 2.1% a day after it plunged 3.7%. The U.S. dollar USDJPY +0.3030% climbed back above the psychologically-important level at the end of the day’s stocks trading, just a day after dropping under that level, and was fetching ¥100.16. The broader Topix JP:I0000 +0.54%  ended 2.6% higher."

"-  Oil futures posted a modest loss for Tuesday’s regular trading session, with traders mostly sidelined by the close ahead of weekly reports expected to show declines in U.S. crude inventories. Before the API data, crude for July delivery CLN3 +0.06%  edged down by 14 cents, or 0.2%, to settle at $93.31 a barrel on the New York Mercantile Exchange after tapping a high above $94."

FKLI- Go Down To Support Range Buy ? 

Words out that recent weakness on our stock index and index futures weakness were likely due to U.S equity market sloppy performance. Most of the sentiment has gone from solid Bullish to temporary correction their stock indexes went down at least 1% recently. The reason behind was due to less easing stimulus or bond buying programme by Federal Reserve and the most recent, disappointing job data. That was the economy background on U.S market, back to our local stock index is still travelling within a range. The Buying interest was peak out right after the election result was announce on 6th May and now we are sitting at ranging market which has lasted for for one month. For spot month contract, the range was running at around 1,795~1,755 area. And according to the play book, much support will emerge when the spot month contract travel down or approaching 1,760~1,755 level while Selling pressure or resistance would prevail if the market approach around 1,790~1,795 level. That was the general guide line to trade in a ranging market, but once the index futures manage to surpass either one of these support or resistance area, huge interest is poised to follow up with the break out. Until then, we are just settling down, trading within the range. For this week, pivot support for the spot month contract is located around 1,763 while resistance is pegged at 1,783.

Daily Pivot Point
R2= 1783
R1= 1779
S1= 1769
S2= 1763

FCPO- Might Open Lower On Soy Oil Weakness 

There is different approaches to reap profit from the market and it all boils down how much risk you would to take in the trading hour and after trading hour for overnight positions. Market strategy does not have one size fit all, every trader will have their own believe and how confidence their trading style will work for them. Meaning to say, same successful strategy used would not bring same results to other traders or other users who use it. That is why, there will be always losers and winners when the market move either up or down, or sideways. However, this zero sum game does not have the same winners and losers, everyone know the losers will always out numbered the winner. Everyone, including us traders knew that cumulative and unanimous Buying or Selling interest forced the price to move, but why in the case of trading in the market, the minority always get the positive share but the majority - who claimed to be the back bone of market mover, always losses ? Back to the market, the benchmark Aug manage to recovered significantly yesterday, blowing up most of the pivot resistance and closed at positive tone. With the optimistic price rally yesterday, the benchmark Aug is likely resume its preceding uptrend soon but it would not be that straight forward today. Reason behind, the most actively traded Soy oil July contract dipped overnight and it is now trading around 48.25 cents per pound at the time of writing. It is a big "if" the benchmark Aug would ignore Soy oil weakness and keep rallying today, but that is not possible because both of them are rival product. Overall, the benchmark Aug short term technical perspective has changed from Bearish to Bullish but for medium term perspective, price outlook remain Bearish.  

Daily Pivot Point
R2= 2432
R1= 2416
S1= 2374
S2= 2348

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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