Stock Index Give Up Gaines 5th Nov 2012

Monday, 5th Nov 2012. Stock index retraced massively for the first time after steadily rallying since past few weeks. Other news to follow.

"- U.S. stocks fell sharply on Friday, as cheer over better-than-expected employment data gave way to nervousness ahead of the U.S. presidential election next week. The equity market had been buoyed at the open by data showing that the American economy created more jobs than expected in October, pointing to a gradual but steady improvement in the labor market. The Dow Jones Industrial AverageDJIA -1.05%  dropped 139.46 points, or 1.1%, to 13,093.16. It had traded as high as 13,289.45. The blue-chip index posted a 0.1% decline for the week. The S&P 500 index SPX -0.94%  lost 13.39 points, or 0.9% to end at 1,414.20, with energy and materials the biggest losers among its 10 major industry groups. For the week, the index gained 0.2%. The Nasdaq Composite index COMP -1.26%  fell 37.93 points, or 1.3%, to 2,982.13. For the week, it dropped 0.2%."

"- Asian markets barreled higher Friday after a strong lead from Wall Street in the wake of upbeat U.S. economic data, with Tokyo and Hong Kong stocks leading the way. Japan’s Nikkei Stock Average JP:100000018 +1.17%  rose 1.2% to return above the 9,000 level, buoyed by the yen’s weakness amid expectations the Bank of Japan may further expanded its asset-purchase program. Hong Kong’s Hang Seng Index HK:HSI +1.33%  advanced 1.3% to top the 22,000-point level, a day after the Hong Kong Monetary Authority again intervened to curb the local currency’s strength against the U.S. dollar amid fund inflows following the Federal Reserve’s latest round of quantitative easing. Elsewhere in Asia, South Korea’s KospiKR:SEU +1.07%  added 1.1% and China’s Shanghai Composite Index CN:000001 +0.60%  finished 0.6% higher, though Australian stocks lagged behind. The S&P/ASX 200 AU:XJO +0.06%  rose 0.1%, weighed by weakness in retailer shares. The gains across Asia followed a Wall Street rally overnight, with investors positioning themselves ahead of closely watched U.S. employment data due later in the day."

"-November Soybeans finished down 31 1/2 at 1527, 31 off the high and 2 1/4 up from the low. January Soybeans closed down 33 1/4 at 1526 3/4. This was 2 1/2 up from the low and 33 1/4 off the high.

December Soymeal closed down 8.4 at 475.9. This was 0.4 up from the low and 8.3 off the high. December Soybean Oil finished down 1.17 at 49.26, 1.37 off the high and 0.15 up from the low. January soybeans closed 33 1/4 cents lower on the session and down 37 cents for the week. The market turned sharply lower into the pit opening as a bearish and "risk off" tone emerged from hedge funds with the market down 22 cents into the mid-session. After bullish and "risk on" news over employment, very few commodity markets saw much is the way of support. The surge in the US dollar continued after the news was release but gold and crude oil turned sharply lower on the day and a general long liquidation selling trend emerged from fund traders. Talk that China crush margins are sluggish and ideas that the South America weather is shifting from threatening weather of the past week to improving crop condition weather for the next week helped to pressure. Central and Northern Brazil weather is cooling with more rain for the region and southern Brazil and Argentina looks to receive relief from the wet pattern over the next week which could boost planting progress. Weekly export sales for soybeans came in at 741,200 metric tonnes for the current marketing year and 19,400 for the next marketing year for a total of 760,600 which was higher than expected. Cumulative soybean sales stand at 74.8% of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 51.7%. Sales of just 195,000 metric tonnes are needed each week to reach the USDA forecast. Meal sales came in at 73,200 metric tonnes which was below trade expectations. Cumulative soybean meal sales stand at 52.8% of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 33.6%. Sales of 66,000 metric tonnes are needed each week to reach the USDA forecast. Oil sales came in at 28,500 metric tonnes. Sales of 6,000 metric tonnes are needed each week to reach the USDA forecast. Aggressive long liquidation selling in a wide range of commodity markets appears to be the key negative force today. Talk of the potential for higher yields for next week's report helped to pressure the market as well."

FKLI- Went Down On Profit Taking 

Malaysia stock index went down substantially for the time on previous Friday as investors trimmed down most of their positions prior to the weekend. Most of the investors prefer to hold less of their position over the weekend, especially when the market is showing some sign of further weakness on previous Thursday. At close, the stock index slipped about 19.56 points or 1.17% to 1,656.13 level while index futures for Nov contract shed about 23 points or 1.38% to 1,649 level. Volume for Nov contract was traded substantially higher from 3,261 contracts to 5,929 contracts. Bears pushed down the market unexpectedly aggressive  with most of the gain made from the past six sessions were wipe out in single session. Much of the Selling activity was spread headed by institutional fund as they might want to cashed out and reduced some of their holding prior to U.S major election over the weekend. Technically, market is likely attempt to recover soon as previous Friday Sell-off was too steep or oversold if you look at another perspective. Medium term technical outlook remain Bullish as it is too soon to identify trend reversal on one Bearish engulfing candle. For the moment, there is no denying that Bears are likely gaining the upper hand to push the market down further based on previous Friday Sell-off. Today, pivot support for Nov contract is located around 1,639 while resistance 1,667.    

Daily Pivot Point
R2= 1685
R1= 1667
S1= 1639
S2= 1630
 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.