Thursday, 30th May 2013. Stock index and index futures open substantially in red territory today amid weak regional equity market performance. Other news to follow.
"- U.S. stocks fell sharply on Wednesday, with Wall Street giving back the prior day’s gains, amid worries over global-growth prospects and fears the Federal Reserve will begin to scale back its bond-buying program. On the run after Tuesday’s 106-point rise, the Dow Jones Industrial Average DJIA -0.69%on Wednesday fell as much as 179 points and finished at 15,302.80, down 106.59 points, or 0.7%. The Standard & Poor’s 500 indexSPX -0.70% declined 11.70 points, or 0.7%, to 1,648.36, also wiping out the prior session’s gains. Consumer staples, health-care and utilities sectors -- all known as defensive sectors -- led declines. Financials was the only gainer on the index’s 10 major sectors. The Nasdaq Composite COMP -0.61% dropped 21.37 points, or 0.6%, to 3,467.52."
"- Most Asian markets rose Wednesday after the Dow Jones industrials ended at a record high, although trading was choppy as concern that the Federal Reserve may taper its bond purchases tempered optimism. South Korea’s Kospi KR:SEU +0.10% rose 0.8% and Taiwan’s Taiex XX:Y9999 +0.91% gained 0.9%. Japan’s Nikkei Stock Average JP:NIK -2.60%, China’s Shanghai CompositeCN:000001 +0.12% and Australia’s S&P/ASX 200 AU:XJO -0.70% each ended 0.1% higher after flirting with losses, with Tokyo-listed equities charting a more volatile path. Hong Kong’s Hang Seng Index HK:HSI -1.61% skidded 1.6% after a two-day rally, with losses accelerating in the afternoon as U.S. equity index futures pointed firmly lower."
"- Oil futures fell below $94 a barrel on Wednesday to log their lowest settlement in four weeks after the OECD cut its global growth forecast and the International Monetary Fund reduced its estimate for China’s growth. Crude for July delivery CLN3 -0.15% fell $1.88, or 2%, to settle at $93.13 a barrel on the New York Mercantile Exchange. Tracking the most-active contracts, that was the lowest price settlement since May 1, according to FactSet data."
"-July Soybeans finished down 7 1/2 at 1501 3/4, 17 1/4 off the high and 11 3/4 up from the low. November Soybeans closed up 1/2 at 1288 1/2. This was 9 1/2 up from the low and 6 1/2 off the high. July Soymeal closed up 2 at 444.3. This was 8.0 up from the low and 3.0 off the high. July Soybean Oil finished down 0.91 at 48.63, 1.26 off the high and 0.07 up from the low. The USDA reported this morning that China canceled 147,000 tonnes of soybeans for the 2012/13 marketing year which helped to pressure the July contract into negative territory today. November saw a moderate amount of buying support as traders took profits in the July/November soybean spread. Many traders believe there are more cancellations to come given the wide spread between outstanding sales for this year and the sharp decline in shipments out of the US. USDA data shows 281,849 tonnes of outstanding sales to China remain on the books and 718,875 tonnes to unknown destinations which could include China. There were also widespread rumors that Chinese traders were looking to cancel purchases from Brazil and even sell back bushels to US traders for new crop. Exports of soybeans from Brazil to China could be record large in May. Domestic basis levels continue to sag in the US along with meal premiums as supply pipelines for processors fill back up."
FKLI- Still Rolling Within The Range
Stock index opened in red today as U.S market ended its winning streak due to concern over the Federal Reserve would lower their bond buying programme in the near term. U.S official are likely pulling off their aid or bond buying activities as the U.S market is picking up but still prone to slow down in longer term. Back to local market, we are likely to expect some mild profit taking activities throughout this end of May after the market has gone up so high previous weeks ago. Although long term outlook remain Bullish, the market upside seems slowing down and pause for retracement in some instances, clearly indicating exhaustion is building up. Objectively, the May contract is still hovering within the range shown on daily chart above. Trapping within 1,800 and 1,756 area, trading opportunity is greatly present to you when the May contract approaches either of these range. Example, 1,800 would serve as the first resistance level, trader can go Short when the May contract approaches this level and placed a protective stops a few points above 1,800 level. Vice versa if the May contract approaches 1,756 level. This week, pivot support for May contract is located around 1,766 while resistance is pegged at 1,783.
Daily Pivot Point
R2= 1789
R1= 1783
S1= 1771
S2= 1766
FCPO- Shooting Star In Broad Daylight ?
Bulls have to leave the market soon as massive Bears were spotted on the closing bell yesterday. Closing about the day low yesterday, Bears made their presents felt and they are likely strike again this week, starting today. The new formed shooting star candle pattern or "pin bar" at the closing bell in the peak of yesterday morning session rally signified strong Selling pressure on the afternoon session. The Bearish sign showed yesterday obviously mark the beginning of correction to this rally. Make no mistakes the Bulls were defeated in the closing bell yesterday, it might be one candle but it is enough to justify the impending weakness that could force the market to travel at least 1% lower, today. No known area for support level yet, the first round number I can cook up is 2,350, which is RM49 lower from yesterday closed. In another words, traders can expect at least first support trend line to be taken out today if the market does made the fall. For this week, prepare for major short term correction as the Soy oil for July contract plunged 1.8% overnight.
Daily Pivot Point
R2= 2429
R1= 2414
S1= 2390
S2= 2381
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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