Wednesday, February 8, 2017

7th Feb 2017: FCPO Commentary

7th Feb 2017: Soy Oil Traded 0.06 Cents Lower, On-Shore Ringgit Traded Slightly Weaker @ RM4.4415
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Trade #177 was re-enter Long around 3,064 level with maximum 5 points stop loss on current preset risk management rules. Unfortunately, the Apr contract happens to vacuum down from 3,062 to 3,058 level, forcing my Sell stop to hit at the next best bid, which is at 3,058. I am not saying that the market is not liquid or there is any technical glitch at that moment, but that is what happen to me yesterday for trade #177 stop loss point on afternoon session. What made me frown the most would be the ability for palm oil futures to rally all the way from 3,057 to 3,089 level after taking my extended stop loss. I still believe any traders out there will have tough time trading in the market, but for my case I did not see any app-laudable achievement yet on my equity since the I start using "The Edges" on Nov 2016. I guess the positive sentiment on palm oil futures still valid judging from how well the Apr contract recover from a swift retracement to day high on closing session. The news on Indonesia palm oil production spike coming this second quarter may not have any effect for the time being probably because we are still 2 months away from April month. For now, palm oil price outlook is likely riding on positive cruise ship that would sail North, steadily. I also did some messy trade based on minute chart, and it was a challenge just to keep up the pace. Trading using full discretionary in a fast pace market does need high concentration and energy, I can honestly tell you that the afternoon session was a struggle to keep my eyes open for the setup. For today, palm oil futures is likely open slightly lower due to soy oil overnight retracement. Soy oil for March was traded 0.06 cents lower to 34.40 cents this morning. Range for Apr contract is likely moving within 3,095 ~ 3,050. 

 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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