Market Overview 27th Feb 2012

 Monday, 27th Feb. The FBM KLCI ended slightly higher on Friday but finished off the week lower while most regional index closed in higher note. Other news to follow.

"-U.S. stocks on Friday notched weekly gains that pushed the S&P 500 to its highest close since mid-2008 as economic reports mostly offset concern about rising oil costs. The Dow Jones Industrial Average DJI -0.01%  fell nearly 2 points to 12,982.95, leaving it 0.3% higher from the week-ago closeThe S&P 500 Index SPX +0.17%  rose 2.28 points, or 0.2%, to 1,365.74, its highest level since June 2008, meaning it notched a new peak for the bull market that started in March 2009. Up 0.4% for the week, the Nasdaq Composite COMP +0.23%   rose 6.77 points, or 0.2%, to 2,963.75."

"- Asia markets ended modestly higher after a choppy session on Friday, with some energy shares supported as oil prices continued to rise, while recent strength limited sharper gains. Australia’s S&P/ASX 200 index AU:XJO +0.48%  gained 0.5% and China’s Shanghai Composite CN:000001 +1.25% rose 1.3%, while South Korea’s Kospi KR:0100 +0.60% ended up 0.6% and Hong Kong’s Hang Seng Index HK:HSI +0.12% added 0.1%. Japan’s Nikkei Stock Average JP:NIK +0.54% rose 0.5%."

"-Crude-oil futures rallied above $109 a barrel on Friday, extending gains to a seventh session and posting a weekly rise of 6% on ongoing concerns about supply disruptions. Crude for April delivery CLJ2 +1.66% rose $1.94, or 1.8%, to $109.77 a barrel on the New York Mercantile Exchange. That brought weekly gains to 6%, oil’s largest weekly percentage advance since Dec. 23."

"-US soybean futures ended higher, continuing a trend of fresh highs for the current move. Strong export demand, forecasts for tightening stocks in the 2012/13 marketing year and the need for soy prices to remain competitive with corn to secure enough 2012 acres to maintain adequate supplies, bolstered buying, analysts say. Traders bought soybeans and sold corn and wheat on spreads, as feed grains are hampered by negative supply and price forecasts from USDA. CBOT March soybeans rallied to a new five-month high during the session, settling up 2 1/4c to $12.79/bushel. Soy product futures end modestly higher, feeding off the supportive theme in soybean futures. Strong weekly export sales helped buoy both soymeal and soyoil, with soyoil drawing additional support from rallying energy prices, analysts say. Soyoil is key feedstock for biodiesel production, tying its price movements with crude oil, analysts say. CBOT March soyoil ended up 0.09c at 54.29 cents/pound, and March soymeal ended up $0.70 to $333.60/short ton.

FKLI- It Is A Waiting Game From Now On

 Stock index manage to regain some ground after retracing for the past few sessions last week and index futures closed at higher note while spending most of its time hovering within 1,557~1,561 area. Volume on the equity derivative market was recorded higher due to month end roll over activities. Most investors that wish to hold for longer term will switch their positions to the next month before the expiry date. And because the index futures or FKLI is cash settled, there will be no physical delivery or take delivery for investors who left their positions until expiry date. Technically, there is no new high formed on previous Friday but the index futures does finished higher on weekly basis. Market might need more retracement or more positive news to draw fresh Buyers. Else, it is likely to pause from edging up from here. Overall, market still hovering on positive momentum at the moment a long as the index does not breach below the support trend line shown above. For today, support is located around 1,553 while resistance is pegged around 1,565.50.


Daily Pivot Point
R2= 1568
R1= 1565.50
S1= 1558
S2= 1553

FCPO- Bulls Might Be Taking Breather Soon.

I would like to write something relevant to trading psychology from time to time, as this is how I reminded myself every time I had a bad trading week or marvelous trading week. So here goes something about "making decision in the market." Waiting for trade set up to come to you need timing, strategies, discipline and most of all patience. And when a trade set up or trade signal arises, it is the trader's discretion whether to follow it or ignore it due to certain circumstances. The greatest taboo or mistake any traders would make were try to second guess that decision made when the trade set up is met. Do not at any circumstances second guess your trading set up or system because the painful experience of missing out a good trade is far greater than making a unprofitable trade. DONT EVER SECOND GUESS YOURSELF, EVER.
 CPO futures closed higher last week as price kept on moving to higher ground due to rising commodities prices and improved economy outlook world wide. Soya oil have provided much support for the CPO futures to surge so far after it rose above 53 cents per pound since early last week. Market sentiment on palm oil demand remain weak as industries survey indicate that Feb export would slightly hit over one million ton. Technically, there are some signs that the benchmark May positive momentum is coming to halt soon as there was no successive high after the price hit 3,300 level. But that is not a solid finding or reason for the market to retrace substantially also as Soya oil manage to sustain its gain above 54 cents per pound on previous Friday. Daily MACD oscillator still suggest positive curve for the price to recover further. For today, support is located around 3,257 while resistance is pegged around 3,299.

Daily Pivot Point
R2= 3299
R1= 3287
S1= 3257
S2= 3239
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.