Tuesday, April 29, 2014

FCPO: It Is A Waiting Game 29th April 2014.

Tuesday, 29th APril 2014. It is the final week for April month and we are still trapped within a ranging trading session for the past one week. Other news to follow.

"- The U.S. stock market finished Monday's roller-coaster session generally higher. The main indexes swung wildly between gains and losses with the Dow Jones Industrial Average trading in a 187-point range. Investors welcomed deal news among telecoms and pharmaceutical companies, as well as stronger-than-expected housing data in early morning trade. Heavy selling of Internet and biotech stocks dragged markets down in late morning, only to recover by late afternoon. The S&P 500 SPX +0.32%ended the day 6.03 points, or 0.3%, higher at 1,869.43. The Dow Jones Industrial AverageDJIA +0.53% closed 87.28 points, or 0.5% higher at 16,448.74. The Nasdaq CompositeCOMP -0.03% closed virtually flat, down a point at 4,074.40."

"-Japanese stocks were lower on Monday, as a stronger yen and the unrest in Ukraine weighed on sentiment in Tokyo, while Shanghai fell on concerns over a glut of new stock offerings. The Nikkei JP:NIK -0.98%   lost 1.3% as the yen rose to nearly ¥102 to the dollar. The dollar USDJPY -0.01%   was last at ¥102.13, compared with ¥102.19 late Friday in New York, with the yen strengthening as U.S. and European governments planned to ramp up sanctions against Russia as early as Monday. The move comes as pro-Russian rebels in eastern Ukraine on Sunday paraded Western military observers as hostages. Also weighing on sentiment in Japan was a disappointing earnings report from Honda Motor JP:7267 -4.47%  , which lost 4.3% after its guidance missed expectations. The company said that it expects its net income to rise 3.6% this fiscal year, much slower growth than in the recently ended fiscal year, when its net income soared by 56%."

"-Energy and utilities stocks will face a crucial test this week with several big earnings reports due from sector heavyweights ExxonMobil Corp, Chevron Corp., and Dominion Resources Inc. Both utilities and energy stocks have been the best performers for the quarter and year, even as the broader market has struggled to find direction. The Dow Jones Industrial Average DJIA +0.53%  declined 0.3% last week and is down 1.3% for the year. The Nasdaq Composite Index COMP -0.03%  fell 0.5% last week for a 2.4% deficit on the year. Only the S&P 500 Index SPX +0.32%  is showing a gain on the year, up 0.8%, as it finished down less than 0.1% last week."


FCPO- Building A Base ? 


No one can tell you for sure where is the market is going next, but one thing we can be expecting for this week would be, nothing spectacular. Why would I say such thing ? Alright, lets rewind back about a two weeks ago when the benchmark month finally break out from 2,670 resistance level after it went down for few weeks before that. What does it did after that, was uninspiring at all. No follow up Buying activities to support the price break out. And you guess it, it fall right after the benchmark month reach 2,700, all the way down to 2,612 level. Now, everyone is just sitting there and watch whether when is the next price break out would be worthy enough to Long at the new high. But what happen if the price does not make any new high or new low ? My split second guess would be doing nothing moving within daily sideways. Well, not exactly nothing, the longer the market took to break out from its current level, the better the force of the break out would be, at least for another ten to twenty points above from 2,700 (if it does goes up from there). Here is the deal for today, for short term plan, Buying around immediate support level at 2,610~2,600 would be a good attempt with 2,695 level as stop loss. On the other side, as we are looking at lower opening value due to Soy oil overnight weakness, Selling around the opening bell not lower than 2,640 (and placing a stop loss around ten points from your entry level) will be the game plan for this morning. So you have it, a Buying and Selling setup for today trading session without even looking at any fundamental news at all.

Daily Pivot Point
R2=2693
R1=2683
S1=2665
S2=2657
 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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