Market Overview 9th Dec 2011

Friday, 9th Dec. Stock index ended weaker yesterday amid sluggish performance on regional index ahead of today European Central Bank's meeting. Other news to follow.

"-U.S. stocks lost sizable ground Thursday as public sparring among European Union members jolted the market late in the session. Down after a three-day rise, the Dow Jones Industrial Average DJIA -1.63%  fell 198.67 points, or 1.6%, to 11,997.70. The Standard & Poor’s 500 SPX -2.11%  lost 26.66 points, or 2.1%, to 1,234.35, with financial companies taking the biggest hit among its 10 major industry groups. Down for a third day, the Nasdaq Composite COMP -1.99%  declined 52.83 points, or 2%, to 2,596.38."

"- Asian share markets closed lower Thursday, with investors cautious ahead of a European Central Bank decision and a summit to tackle the euro-zone debt crisis. Hong Kong’s Hang Seng Index HK:HSI -0.69%  and Japan’s Nikkei Stock Average JP:NIK -0.59%  each ended the day with a 0.7% loss. South Korea’s Kospi KR:0100 -0.37%  fell 0.4%, while Australia’s S&P/ASX 200 Index AU:XJO -0.28%  retreated 0.3%, and the Shanghai Composite Index CN:000001 -0.12%  slipped 0.1%."

"-U.S. crude-oil futures slipped under $100 a barrel Thursday to end at their worst in more than a week, after hopes the European Central Bank would step it up to help struggling euro-zone nations were quashed. Light, sweet crude for January delivery CL2F -0.13%  shed $2.15, or 2.1%, to settle at $98.34 a barrel on the New York Mercantile Exchange. That was oil’s lowest settlement since Nov. 28."

"-US soybean futures end steady to mostly higher amid position squaring ahead of tomorrow's USDA report. The market traded both sides of unchanged during the session and lacked direction, as traders looked to position themselves ahead of the USDA report. Traders expect USDA will increase projected stockpiles due to poor export demand. Grains and soy shook off pressure from outside markets stemming from worries about Europe's debt. Jan CBOT soy ends flat at $11.31 a bushel, while other contracts are up slightly. March CBOT soybean oil ends down 0.03c to 50.88c/lb; March soymeal down $0.90 to $288 a short ton."

FKLI- Extended Correction Ahead Of ECB Meeting

The FBM KLCI retraced about 10.07 points to 1,472.92 level yesterday amid weaker than expected performance on regional index. Most investors are expressing pessimistic expectation on the outcome of the ECB meeting that will announce tonight, 8th Dec. That explain why most of the Asia region benchmark were close lower yesterday. For index futures, the Dec contract shrink about 15 points to 1,469.50 level, just one point to hit the low of the day. Closing at the low of the day is something what Long holder does not want to see as it would likely signifies further weakness on the next session. Unfortunately, what we can observe graphically so far was impending weakness ahead due to lower high and lower low formation on the hourly chart show above. Most traders would guess that the market have yet finish covering the previous gap which located around 1,460 level. Best thing to guess over here would be U.S market and European market overnight performance as our local market pre-opening prices would be tracking those overnight benchmark performances.

Daily Pivot Point
R2=1486
R1=1477
S1=1464
S2=1460

FCPO- Disturbed Upside Momentum. 

CPO futures return to trade back in previous range as it closed lower about RM30 to 3,089 yesterday. Market could be breaking out from the range or the major resistance level above 3,133 yesterday if there was no heavy uncertainties over the European debt issues and weaker than expected Soya oil futures performance. But unfortunately, that was not the case as commodities, equities and other trading instrument in the market are some how correlated eventually. The next headlines would be concentrated on the MPOB palm oil fundamental report which will be announce on next Monday. Technically, the benchmark Feb uptrend momentum has been distorted yesterday when the market retrace back into its range plus there is no higher high formation form yet. Market need to overtake the previous high at 3,133 level before it could claim stronger positive momentum. For today, support is located around 3,063 while resistance is pegged at 3,109.

Daily Pivot Point
R2=3129
R1=3109
S1=3076
S2=3063
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.