Market Overview 23rd Nov 2011

 23rd Wednesday. The FBM KLCI recover slightly yesterday after retracing for the past two session previously, regional indexes ended mostly lower in a choppy trading session yesterday. Other news to follow.

'-U.S. stocks ended lower Tuesday, with the S&P 500 down for a fifth session, as further turmoil in Italian and Spanish markets heightened investor anxiety about the global economic picture. After rising as much as 24 points and falling as much as 113 points, the Dow Jones Industrial Average DJIA -0.46%  closed down 53.59 points, or 0.5%, to 11,493.72. Of 30 components, 22 ended with losses. The S&P 500 Index SPX -0.41%  fell 4.94 points, or 0.4%, to 1,188.04, with utilities and energy down the most and health care and consumer staples the best performers among its 10 industry groups. The Nasdaq Composite Index COMP -0.07%  declined 1.86 points, or 0.1%, to 2,521.28, also down for the fifth straight day."

"- Asian stock markets spent most of Tuesday in negative territory, weighed by U.S. and European debt concerns, but the major indexes ended off their lows, with Hong Kong and Seoul closing with gains. Japan’s Nikkei Stock Average JP:NIK -0.40%  declined 0.4% the Australian S&P/ASX 200 index AU:XJO -0.72%  lost 0.7%, and the Shanghai Composite Index CN:000001 -0.10%  edged down 0.1%. However, Hong Kong’s Hang Seng Index HK:HSI +0.14%  recovered from midday losses to end 0.1% higher, while South Korea’s Kospi KR:0100 +0.34%  also rebounded to finish with a 0.3% gain."

"- Crude-oil futures climbed back above $98 a barrel Tuesday, putting an end to a three-session decline as tensions in the Middle East fueled concerns over supplies from the oil-rich region. Crude for January delivery CL2F -0.44% tacked on $1.09, or 1.1%, to settle at $98.01 a barrel on the New York Mercantile Exchange. Prices touched a high of $98.70."

"-US soybean futures ended higher, able to stabilize after previous declines on recent export demand and the absence of external financial pressure. Soybeans were able to shake off the mixed signals from outside markets, buoyed by outlooks for strong demand at current price levels and seasonal buying, analysts say. Soybeans have a seasonal tendency to bounce after Thanksgiving as harvest concludes, and some traders are looking to take advantage of lower prices before any rally, say Tim Hannagan, analyst at PFG Best. CBOT Jan soy ended up 5c at $11.53/bushel. US soy product futures climbed, rebounding from prior declines in unison with soybeans. Oversold conditions and spillover support from higher crude oil futures added to soyoil's recover, with soymeal rising in step with the rest of the complex, analysts say. CBOT Dec soymeal ended up $2.40 at $292.00/short ton; Dec soyoil finished up 0.89c at 50.78c/lb. "

 FKLI- Impending Rebound After Previous Correction

 Asia benchmark index mostly ended lower yesterday as investors remain cautious about the development over Europe debt crisis and upcoming performance over U.S market stock index performance for this coming week. The FBM KLCI ended slightly higher yesterday, rose about 3.91 points to 1,437.99 whereas index futures for Nov contract gained about 9.50 points to 1,424 level yesterday after  dropping to the low at 1,407. Technically speaking, index futures is likely to rebound judging from yesterday recovery. It will be fatal to see how much the index futures could recover from this level. For longer term and confirm upside momentum, the index futures need to overtake previous high above 1,498 level. Index futures is likely traveling back its preceding negative momentum if it Fail to overcome previous high. For this near term, let us observe how well market could recover first. Today, pivot support level is located around 1,410 while resistance is pegged at 1,433 followed by 1,442.

Daily Pivot Point
R2= 1442
R1= 1433
S1= 1410
S2= 1397

 FCPO- Healthy Correction Bulls Still On The Run

CPO futures retrace for the second time straight yesterday, paving way for some healthy correction after surging since last two weeks. The benchmark Feb need to have some breather after rising to a 18th week  high at 3,270 on previous Friday. Technically, the Bullish momentum remain intact even though the benchmark Feb have retrace about 125 points from the peak @ 3,270. In fact, the price hold up quite well even after it breached yesterday immediate support level at 3,175 level. For longer term perspective, palm oil price outlook is likely remain positive as long as the major support area around 3,075 is not violated. Apart from that, current weather condition is likely limit price from dropping steeply. For today, support is place around 3109 while resistance is pegged at 3,247. 

Daily Pivot Point
R2= 3247
R1= 3211
S1= 3142
S2= 3109
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.