Trading Tips for the Day - 29 May 2015

FKLI will likely open lower today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, continued strength in China Dalian olein futures carried market to a 2-week high yesterday. Buying was also encouraged by weakness in ringgit and higher e-CBT soyoil. Some reports of severe dry weather in East Malaysia also underpinned sentiment. Technical buy stops above 2200 magnified gains. Prices rose 12 to 41 higher in the morning and held steady throughout the afternoon.

There was some play on weather today. Reports of hot and dry weather in East Malaysia gave rise to El Nino concerns. However, palm oil production will only be affected after 6 months although sentiment can be immediate. China demand looks like the main factor with sharp rise in Dalian RBD palm olein futures pointing to strong demand continuing. However, the CBT soyoil / soyabean outlook is negative with good weather todate. Crude mineral oil is also weak.

Technical view - the break above 2200 is positive. Prices may move to 2250. Ringgit ~ 3.6410 / 3.6430 vs USD.  Trend sideways ; RSI 57.25 ; parabolic triggered a "buy" signal at 2208 ; stochastic overbought ; 5-day MA reintersected 20-day MA from below ; support 2150 / 2120 / 2070 / 2000 ; resistance 2235 / 2270 / 2320.  Interested to trade futures? PM me or visit http://jaceonmarkets.blogspot.com

In other news...

🇨🇳 Shanghai Composite widened losses in the afternoon session to end down 6.5% as more Chinese brokerages are tightening margin lending rules seem to be the main cause of concern among retail investors. In additional, an unit of the country’s sovereign wealth fund also cut its stakes in China’s biggest state-owned banks.

🇨🇳 China to Ease Limits on Overseas Investments - China’s campaign to turn the tightly controlled yuan into a global currency is crossing a new threshold, as the government plans to make it easier for individuals and companies to invest overseas.

🇺🇸 U.S. Stocks pullback slightly after a rocky week for stocks as investors grapple with news out of Greece, a mixed bag of economic data, a wave of new merger announcements and the prospect of the first interest-rate increase by the Federal Reserve in nine years later this year.
- U.S. Jobless Claims Rise, But Job Growth Still Seen Strong
- U.S. Pending Home Sales Hit Nine-Year High

💵 The dollar pushed to a 12-year high against the yen, buoyed by investors betting that the U.S. has emerged from its economic slowdown and is moving toward higher interest rates. Now, $/¥ 123.77.

€ European stocks were down after European officials rebuffed Greece's claim that a deal on Greek bailout funds is near. Also, the ECB warned in its twice-yearly Financial Stability Review that a failure to reach an agreement on Greece's aid program may drive bond yields in other Eurozone countries higher.

€ Eurozone May economic confidence was unchanged at 103.8, stronger than expectations of -0.2 to 103.5.

🇯🇵 Japan's Nikkei Stock Index climbing +0.39% to a fresh 15-year high as exporters rallied on weakness in the yen which tumbled to a 12-1/3 year low against the dollar.

⛽ Oil prices managed a gain after weekly inventory data showed bigger-than-expected drops in crude and gasoline supplies. U.S. commercial crude-oil supplies fell by 2.8 million barrels in the week ended May 22, the U.S. EIA said.

👑 Gold prices edged higher, as weaker-than-expected U.S. jobs data reminded investors of the uneven recovery of the world’s largest economy. Now, $1,189.20.

🌴 FCPO (RM2,208) closed higher yesterday. Bullish factors: (1) strength in China Dalian futures and CBT Soyoil. (2) weak Ringgit. (3) report on hot and dry weather at East Malaysia give rise in El-Nino concerns. However, palm oil production will only affected although sentiment can be immediate. (4) Technical buy stop above RM2,200.

Trading Tips for the Day - 28 May 2015

FKLI is likely to open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market closed lower yesterday after trading on either sides of the previous day's close. There was early support following strong gains in CBT soyoil and China Dalian futures. Weaker ringgit added  support. Better sellers came in the afternoon on lack of bullish conviction. Quiet cash market and concerns over higher production in the coming months undermined sentiment. Prices were 13 higher to 6 lower in the morning and eased to 17 lower in the afternoon.

Strong gains in RBD palm olein in China Dalian futures these past 2 days gave ideas of strong demand from China continuing. However, there are no fresh factors. Increasing production and big supply of soyabean are negative. Upcoming export levy by Indonesia, and strong demand from China and India are positive. The key factor in coming weeks will be the Indian monsoon and weather in the US for the current soyabean crop.

Technical view - prices pulled back from strong gains. Indicators remain slightly positive. Ringgit ~ 3.6350 / 3.6380 vs USD.

In other news...

🇺🇸 The Nasdaq Composite (5,106 , +73) rose to a new record close, as technology companies led major benchmarks higher one day after a midday report on Avago and Broadcom deal. U.S stocks climbed triple digits as encouraging Greece headlines boosted investor sentiment amid a slight pause in the dollar and yield climb

💵 The dollar rallied into a fourth session, as investors added to their bets that the U.S. recovery would push forward the timeline for higher borrowing costs.

€ European stocks closed sharply higher after hints that Greece may have edged closer to finalizing a deal with its creditors. Also, German Jun GfK consumer confidence unexpectedly rose to the highest since 2005.

📝 Greece's 10-year bond yield fell -17 bp from Tuesday's 1-month high after the ECB left the Emergency Liquidity Assistance (ELA) ceiling for Greek lenders unchanged at 80.2 billion euros, a sign that Greece's cash crunch hasn't worsened.

🇯🇵 Japan's Nikkei Stock Index closed up +0.17% at a 15-year high as the plunge in the yen to a 7-3/4 low against the dollar boosts the earnings prospects of Japanese exporters.

🇯🇵 Japan is loosening rules on pensions, drawing interest from U.S. investment managers who want to look after a slice of the country’s trillions of dollars of retirement money.

🇨🇳 China's Shanghai Composite Index closed up +0.63% at a 7-1/3 year high after China Apr industrial profits rose +2.6% y/y, the first increase in 5 months and the largest gain in 7 months.

⛽ Oil came under pressure as a resurgent dollar weighed on crude prices ahead of inventory data expected to show whether fuel demand was accelerating with the peak U.S. driving season under way.

🌴 FCPO (RM2,178) closed lower after trading either sides of the previous day's close. There was early support after strong China Dalian futures and CBT Soyoil. Weak Ringgit also added support. However, price unable in the second session as lack of bullish conviction. Quiet cash market and concerns over higher productions in the coming months undermine sentiment.

Trading Tips for the Day - 27 May 2015

FKLI will likely open lower today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, strong gains in China Dalian futures, with RBD palm olein rising about 3 pct, carried market sharply higher yesterday. Buying was also encouraged by the SGS export numbers showing an all time high for 1-25 days. Weaker ringgit, which lost about 0.3 pct vs USD, was also supportive. Technical buy stops as prices broke above 2170 added gains. Prices rose 17 to 54 higher in the morning and held steady in the afternoon.

Sentiment followed the jump in China Dalian RBD palm olein futures, which gave ideas of strong demand continuing. The SGS numbers showed its biggest exports to China for 1-25 May. With the usual better demand for festive Ramadan and imminent implementation of the export levy by Indonesia, there are expectations of strong exports in the coming months. Meanwhile, the market is entering the weather period where primary focus will be on USA and India. The current situation is neutral.

Technical view - the break above 2170 is positive. Prices may test resistance at 2200. Ringgit ~ 3.6250 / 3.6270 vs USD.  Trend sideways ; RSI 53.61 ; parabolic SAR at 2213 ; support 2150 / 2110 / 2070 / 2000 ; resistance 2200 / 2235 / 2270 / 2320.  Interested to trade futures? Please PM me for more info.

In other news...

🇺🇸 U.S. stocks closed about 1% lower on Tuesday as investors eyed renewed strength in the U.S. dollar and mixed data that could strengthen the case for a rate hike. 
- U.S. Durable Orders Slip, but Business Spending Firms Up
- U.S. New-Home Sales, Prices Climb

💵 The dollar rallied broadly, driven by a recent flurry of upbeat economic data in the U.S. that’s bolstered some investors’ confidence in the growth outlook.The Dollar soared to a nearly eight-year high against the Japanese yen, a one-month high against the euro and a six-week high against the Canadian dollar.

€ European stocks closed lower as renewed Greek default concerns as the Greek 10-year bond yield jumped over 50 bp to a 4-week high of 11.97% after ECB Governing Council member Hansson said an agreement on Greece is "not in sight yet."

🇨🇳 China's Shanghai Stock index up +2.02 % at a 7-1/3 year high on optimism that government plans to boost foreign access to markets will spur inflows.

🇯🇵 Japan's Nikkei Stock Index closed up +0.12% at a 15-year high after the yen sank to a 8-year low against the dollar, which boosts the earnings prospects of Japanese exporters.

⛽ Oil prices slipped on a stronger dollar and concerns that the recent rally in oil prices could spark an increase in production.

👑 Gold prices sank to a two-week low, as the dollar rose amid increased investor optimism that the Federal Reserve would raise interest rates after the summer.

🌴 Strong gain in China Dalian RBD futures, carried FCPO sharply higher yesterday. Strong exports reported and weak Ringgit were added support. Price break above 2,170 is positive.

Trading Tips for the Day - 26 May 2015

FKLI will likely open lower today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As or FCPO, market closed higher yesterday on better support in the afternoon. Buying was encouraged by the very high 1-25 May exports and prospects of good export pace continuing. Weak ringgit, which lost about 0.8 pct vs USD, was also supportive. Market eroded in early trading following sharply lower CBT soyoil and crude mineral oil. Easier China Dalian futures also undermined sentiment. Prices were 14 to 1 lower in the morning and rose to 16 higher in the afternoon before giving back some gains towards close.

The 1-25 May exports were the highest for 25 days since the record high in October 2011. A continuation of the strong export pace may see lower stocks with production estimated to rise 5-10 pct. Together with prospects of good demand for the festive Ramadan, the short term fundamentals look positive. However, the bumper soyabean crop and lack of weather concerns so far, are keeping sentiment generally more negative.

Technical view - indicators remain negative. Prices may return to fill the gap at 2108. Ringgit ~ 3.6140 / 3.6160 vs USD.  Trend down ; RSI 44.64 ; stochastic turned up from oversold ; support 2110 / 2070 / 2000 ; resistance 2200 / 2235 / 2270 / 2320. 

In other news...

🇨🇳 Shanghai index rallied above the 5,000 level, scoring fresh multi-year highs, as investors reacted to a rejuvenated dollar and news of more than 1000 infrastructure projects in China.

🇨🇳 China outlined plans to support manufacturing in 10 major areas including information technology, robotics, aviation and aerospace equipment, rail transport, new energy vehicle, power equipment, medical equipment and agricultural machinery in the next 10 years, the Xinhua News Agency reported last week, citing a plan issued by the State Council.

📝 The Athens Composite index closed more than 3% lower, as fears of a potential Greek exit from the euro zone remained in the backdrop after the country's interior minister, Nikos Voutsis, threatened to default on loan repayments due to the International Monetary Fund on Sunday.

🇸🇬 Singapore's gross domestic product (GDP) in the first quarter grew 2.6 percent from the year-earlier period, beating expectations for 2.2 percent growth from a Reuters poll.

🇺🇸 Today, U.S. Economic data is expected to be mixed.
- U.S. May consumer confidence expected to edge lower
- U.S. home prices expected to show another strong increase 
- April new home sales expected to recover some of March’s tumble 
- Manufacturing data expected to be mixed

👑 Gold prices fell slightly on Monday, as the dollar gained traction against major currency rivals, on signs the Federal Reserve is preparing to tighten monetary policy for the first time in six years in 2015. Now, $1,206.

🌴 FCPO (RM2,138) closed slightly higher as buying was encouraged by good 1-25 May exports and expectation that good export pace continuing. However, bumper soybean crop and lack of weather concerns, generally keep sentiment negative.

Trading Tips for the Day - 25 May 2015

FKLI will likely open lower for today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market eroded Friday as bearish sentiment dominated. Fresh factors were lacking. Selling was prompted by concerns over lack of support inspite of steadiness in CBT soyoil and China Dalian futures. Crude mineral oil also rose sharply. Sentiment was undermined by news that Indonesian export levies will not be introduced until July or August. Talks of slow down in exports the last few days also affected support. Prices were 2 to 17 lower in the morning and extended losses to 31 lower in the afternoon.

Sentiment is generally negative in view of the seasonally higher production in coming months. Adding weight was the scaling up of South American soyabean crop. The news of delay in the Indonesian export levies rendered this supporting factor uncertain, which can have a reverse impact. Export numbers will be followed in the coming week with expectations of slower pace vs the previous weeks.

Technical view - the drop to new low kept indicators negative. Prices may fill the gap at 2108. Ringgit ~ 3.5820 / 3.5850 vs USD.  Trend down ; RSI 44.0 ; stochastic turning up from oversold ; macd intersected trigger line from above ; support 2110 / 2070 / 2000 ; resistance 2200 / 2235 / 2270 / 2320.

As for other news...

🇺🇸 Fed Chair Janet Yellen said “If the economy continues to improve as I expect, I think it will be appropriate at some point this year to take the initial step to raise the federal funds rate.” She added that delaying the first rate increase until unemployment and inflation return to the Fed’s objectives “would risk overheating the economy.”

🇺🇸 U.S. stocks closed lower on Friday, failing to hold highs touched during the session, as investors eyed inflation data and Fed Chair Yellen's speech ahead of the long weekend.

🇺🇸 The U.S. Apr CPI report of +0.1% m/m and -0.2% y/y was right in line with expectations.

€ European equities closed mixed on Friday as investors focused on a central banking forum in Portugal and a speech from U.S. Federal Reserve Chair Janet Yellen.

🇨🇳 China's Shanghai Stock Index closed up +2.83% at a new 7-1/4 year high on speculation that recent weak economic data will spur the Chinese government to boost stimulus measures. Moreover, "unused funds from recent new-share listings have been repositioned back into the domestic market," wrote IG's chief market strategist Chris Weston in a note.

🇯🇵 Japan edged up to finish the week at their highest levels in 15 years. The Tokyo bourse had slipped into the red earlier in the day as investors awaited the BOJ's decision.

🇯🇵 IMF warned the Bank of Japan will take longer than it expects to hit its inflation target even with more monetary easing, and said "bolder" structural reforms are required to shake off an entrenched deflationary mindset.

⛽ WTI oil futures settled modestly lower after Baker Hughes reported its weekly U.S. oil rig count fell by just 1 rig.

👑 Gold closed modestly lower, marking its biggest weekly decline in four weeks, as the dollar rebounded after a stronger-than-expected rise in U.S. core consumer prices in April. Now, $1,203

🌴 Malaysian palm oil futures (RM2,135) fell on Friday and were headed for their biggest weekly drop in three, on rising scepticism among investors about the sustainability of the robust export demand seen this month. Sentiment was generally negative in view of seasonal higher production in the coming months. The drop to new low kept indicator negative. Price may fill the gap of 2108.

Trading Tips for the Day - 22 May 2015

FKLI wil likely open higher for today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO,  good support in the afternoon closed market higher yesterday. Buying was led by short covering and technical correction from the oversold situation indicated in the stochastic. Steady CBT soyoil, China Dalian futures and strong gains in crude mineral oil also encouraged support. Market was easier in the morning on continuing bearish sentiment and lack of fresh factors. Prices were 3 higher to 8 lower in the morning and rebounded to 23 higher in the afternoon.

Unless there are new factors, the very good May exports todate may see some recovery from declines the past few days. Talks of better demand for the upcoming festive Ramadan may also underpin sentiment. However, higher production in the coming months and big soyabean supplies remain of concern. Technical view - prices correcting from the oversold situation in the stochastic. Indicators remain slightly negative. Ringgit ~ 3.6010 / 3.6030 vs USD.  Trend down ; RSI 47.96 ; stochastic oversold ; 5-day MA intersected 20-day MA from above ; support 2110 / 2070 / 2000 ; resistance 2200 / 2235 / 2270 / 2320.

In other news...

🇺🇸 The S&P 500 index ground out a new record high Thursday, as U.S. stocks gained broadly in quiet trading. With the first-quarter earnings season largely complete, many investors say they are sitting tight as they await new market-moving catalysts.

📝 The Eurozone May Markit manufacturing PMI unexpectedly rose +0.3 to 52.3, stronger than expectations of -0.2 to 51.8 and the fastest pace of expansion in 13 months.

€ European stocks were eked out gains to close higher as investors digested fresh data from the euro zone.

🇩🇪 The German May Markit/BME manufacturing PMI fell -0.7 to 51.4, weaker than expectations of -0.1 to 52.0.

🇨🇳 The China May HSBC flash manufacturing PMI rose +0.2 to 49.1, weaker than expectations of +0.4 to 49.3 and the third month the index has remained below the contraction/expansion level of 50.0.

🇨🇳 Shanghai Composite rose to a 3-week high on speculation that contraction in Chinese economic activity will prompt China to boost stimulus measures.

🇯🇵 Nikkei Stock Index at a 15-year high on speculation the weak yen will continue to aid Japanese growth after Wednesday's data showed Japan Q1 GDP rose more than expected at its fastest pace of growth in a year.

⛽ WTI crude oil rose about 3% as a reported drawdown of stockpiles in the Cushing delivery point for U.S. crude futures boosted optimism that a supply glut was easing.
* WTI $60.72 (+1.74)
* Brent Crude $66.20 (+1.20)

📝 Gasoline futures climbed to a 2015 high on expectations of strong driving demand during the Memorial Day weeken

👑 Gold prices fell to a one-week low as investors tried to discern whether the Federal Reserve is set on tightening monetary policy after the summer.

🌴 FCPO (RM2,158) closed higher after earlier sell off. Buying was led by short covering and technical correction from the oversold situation indicates in the scholastic. Talks on better demand for the upcoming festival Ramadan may also added support. However, higher productions in palm oil and Soyoil supplies remain of concern.

Trading Tips for the Day - 21 May 2015

FKLI will likely open lower today, for the first trade, one can attempt to short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO,  market closed lower for the 4th consecutive day, to its lowest level since 30 April. Selling followed sharply lower CBT soyoil, China Dalian futures, and crude mineral oil. Losses were held by the very good 1-20 May exports and weak ringgit, which lost about 0.5 pct vs USD. The oversold technical situation in the stochastic also helped to limit the decline.   Prices were 27 to 8 lower in the morning and 6 to 21 lower in the afternoon.

A continuation of strong exports may keep end May stocks about unchanged vs April. With prospects of good demand continuing through upcoming Ramadan, and increased usage by Indonesia for fuel, there should be little supply pressure. However, big supplies of soyabean and weakness in crude mineral oil are undermining sentiment. In anycase, weather will be closely followed in the coming months, with US soyabean crop currently being planted and India looking towards the monsoon.

Technical view - the break below 2150 is slightly negative. The oversold situation in the stochastic may see some upward correction.  Ringgit ~ 3.6120 / 3.6150 vs USD.  Trend down ; RSI 44.75 ; parabolic triggered a "sell" signal at 2145 ; stochastic oversold ; 5-day MA intersected 20-day MA from above ; support 2110 / 2070 / 2000 ; resistance 2200 / 2235 / 2270 / 2320.

In other news...

🇺🇸 U.S. stocks fell slightly, giving up earlier gains, Treasury bonds strengthened and the dollar pared gains against the euro after minutes from the Federal Reserve’s April policy meeting suggested the central bank remains hesitant to raise interest rates soon.

🇨🇳 Investors will be focusing on May HSBC China Flash Manufacturing PMI, which was 48.9 at the end of April. Last month’s PMI reading marked the biggest contraction in Chinese manufacturing in a year and was a factor in the People’s Bank of China’s decision to instigate another rate cut.

🇬🇧 The Bank of England policy minutes showed that the Monetary Policy Committee voted unanimously (9-0) to keep its base rate unchanged at 0.50%.  However, the minutes also said that slack in the UK economy will probably be eroded within a year, which signals that potential future inflation pressures may then require a rate hike.

€ European shares closed mixed, but markets struggled to gain momentum amid worries about cash-strapped Greece and as focused turned to the release of the minutes from the U.S. Federal Reserve's last meeting.

€ The ECB increased the amount of money Greek banks can borrow under an emergency lending program, according to a Greek bank official, extending a lifeline for the country’s banks.

🇯🇵 Nikkei 225 ended up nearly 1% on the back of the upbeat GDP print. Japan's Q1 GDP rose +2.4% (q/q annualized), which was stronger than consensus of +1.6%, although Q4 was revised lower to +1.1% from +1.5%.

⛽ Oil prices moved higher after after weekly government data showed unexpectedly large drops in U.S. supplies of crude oil and petroleum products.

👑 Gold prices surged in electronic trading in the seconds following the publication of the minutes of the Fed’s meeting before falling back, but remained positive for the day.

🌴 FCPO (RM2,142) closed to its lowest level since 30 April. Selling followed by sharply lower CBT Soyoil, China Dalian futures and crude mineral oil. However, losses were held by very good export data and weak Ringgit. The price break below 2,150 was slightly negative. The oversold situation at stochastic may see some upward correction.

Trading Tips for the Day - 20 May 2015

FKLI will likely open almost at yesterday's closing price.  For the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market eroded yesterday following weak trend in related outside markets. CBT soyoil, China Dalian futures and crude mineral oil all continued to ease. Rumours of very good 1-20 May exports to be reported by the cargo surveyors tomorrow encouraged some support which failed to carry through. Weaker ringgit, which lost about 0.6 pct vs USD, was supportive but largely ignored. Prices were 20 to 11 lower in the morning and recovered from 28 to 7 lower in the afternoon before eroding again towards close.

Confirmation of very good 1-20 May exports may check the current easier trend. Generally, there are no new factors. Higher production in the coming months and big soyabean crop are negative. Prospects of strong demand continuing in light of the upcoming Ramadan and discount of palm oil to soyoil, are supportive. Biggest factor will be weather, especially with talks of El Nino.

Technical view - prices continued to correct. A 50 pct correction is 2150 which is also a strong support level. Ringgit ~ 3.5920 / 3.5940 vs USD.  Trend down ; RSI 47.47 ; parabolic SAR at 2145 ; stochastic oversold ; support 2140 / 2110 / 2070 ; resistance 2200 / 2235 / 2270 / 2320. 

In other news...

🇨🇳 Shanghai Composite index up 3.15% as news that Beijing plans to gradually ease controls over deposit rates, improve the initial public offering (IPO) system and develop its capital market. Also boosting sentiment was a document issued by the State Council on Monday about steps to experiment a Shenzhen-Hong Kong stock connect.

🇯🇵 Nikkei 225 index recovered the 20,000 mark in morning trade and held on to a three-week high, but gains were capped as investors looked ahead to the release of first-quarter gross domestic product (GDP) on Wednesday. In the fourth quarter, Japan posted 0.6% quarterly and 2.2% annualized growth.

🇺🇸 Today’s release of the minutes of the April 28-29 FOMC meeting may provide some color on the Fed’s thinking on when it will need to raise interest rates. However, the U.S. economic data since the April 28-29 FOMC meeting has been weak, thus making the minutes obsolete to some extent.

🇺🇸 The Dow industrials climbed to a fresh record high for the second session in a row. Bullish factor was the sharp +20.2% increase in April US housing starts to a 7-1/3 year high.
* Dow 18312 (+13.51)
* S&P 500 2127 (-1.37)
* Nasdaq 5070 (-8.41)

€ The markets are waiting to see if the ECB at its weekly Greek review meeting today will boost the haircut on Greek bank collateral, thus reducing the liquidity available to Greek banks.

💶 The euro got hit with a double whammy and extended its losses against the dollar as the European Central Bank signaled it would step up bond buying in the coming weeks and investors got positive economic news out of the U.S. The dollar rose 1.5% against the common currency in late-afternoon trade.

⛽ The U.S. oil benchmark has slid for five straight sessions, the longest losing streak since mid-March. Though prices are still up more than 30% from a near six-year low reached in March, the benchmark has fallen 5.7% in the last five sessions.
* Crude oil 57.3 (-2.13)
* Brent Crude 64.39 (-1.88)

⛽ The market consensus for today’s weekly EIA report is for a -2.0 million bbl drop in U.S. crude oil inventories.

👑 Gold prices fell nearly 2% as the dollar extended gains after positive U.S. data while global shares gained ground following the European Central Bank's suggestion it may speed up bond buying. Now, $1,209.65.

👑 A decline in bank-to-bank gold trading has hurt market liquidity and made it more expensive to hedge and conduct big trades.

🌴 FCPO (RM2,158) closed lower after lower CBT Soyoil, China Dalian Futures and crude mineral oil. Rumors of a very good 1-20 May exports to be reported today encourages some support in the middle session but failed to carry through closing. Price 50% correction from the recent high is 2150 which is also strong support level.

Trading Tips for the Day - 19 May 2015

FKLI will likely open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, prices retraced lower yesterday led by lower CBT soyoil / soybean and Dalian futures. Higher production estimates by Southern POMA for 1-15 May reinforced expectations that we will be seeing higher production and higher stocks in May. Prices were 8 to 19 lower in the morning and were rangebound in the afternoon, trading from unchanged to 8 lower.

Market remains weighed down by prospect of higher production in coming months. Although exports are expected to be good with the upcoming Ramadan as well as increase demand from India and China, stocks may still increase if demand cannot outstrip supply. Furthermore, bumper soybean harvest is currently coming out of South America. However, prospect of El Nino weather causing damage is negating some of the bearishness.

Technical view - prices retracing. Positive indicators remain intact.  Ringgit ~ 3.5680 / 3.5700 vs USD.  Trend up ; RSI 51.86 ; parabolic SAR at 2137 ; support 2160 / 2110 / 2070 ; resistance 2235 / 2270 / 2320.  Interested to trade our markets or want to know more? Please drop me a message and I can start guiding you on how to trade right away.

In other news...

🇺🇸 U.S. stocks pushed modestly higher, lifting the Dow industrials and the S&P 500 index to new highs. The gains came on relatively light volume. Traders attributed the light activity to the wind-down of the first-quarter earnings season and a dearth of market-moving economic news.

💵 The dollar rose to its biggest one-day gain in two months against the euro, reversing some of last week’s losses amid increased investor concerns about Greece’s ability to pay its mounting debts.

🇺🇸 The Fed is scheduled on Wednesday to release the minutes of its interest-rate policy meeting in April. The next policy meeting is due in June.

€ European stocks closed positive  as Greek and broader European stocks turned higher on reports that Greece was being "more constructive" in talks, according to Reuters. 

📝 Tomorrow, ECB review of Greece and whether the ECB decides to increase the haircut on Greek bank collateral and blow a hole in Greek banks’ funding ability.

⛽ Oil prices edged lower after Saudi Arabia posted its highest level of monthly exports in nearly 10 years and an Iranian official said OPEC would likely decide to keep production steady at its meeting next month. Also, stronger dollar discouraged foreign buyers and data from a private forecasting agency that showed U.S. oil inventories fell less than expected last week.

⛽ Oil prices firmed at the early session as Islamic State militants said they had seized control of the key city of Ramadi in western Iraq, raising fears of deeper turmoil in the oil-producing country.

👑 Gold hit three-month highs as a run of soft U.S. data supported expectations that the Federal Reserve will hold off hiking interest rates for the time being.

🇨🇳 China Apr new home prices fell in 47 of the 70 cities tracked by the National Bureau of Statistics, an improvement from declines in 49 cities in Mar.

🇯🇵 Japan's Nikkei Stock Index at a 2-week high as Japan Mar machine orders rose +2.9% m/m and +2.6% y/y, stronger than expectations of +1.5% m/m and -6.0% y/y.

🇯🇵 Today, Japan Q1 GDP report (expected +1.6% (q/q annualized) after Q4’s +1.5%).

🌴FCPO (RM2,182) closed slightly lower in tandem with the lower CBT Soyoil and China Dalian Futures. Higher production estimated by Southern POMA for 1-15 May reinforced expecting that seeing higher productions and higher stocks in May.

Trading Tips for the Day - 18 May 2015

FKLI will likely open a little higher, for the first trade today, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market closed lower Friday after choppy trading on either sides of the previous day's close. Selling was tied to lack of bullish conviction as traders discount the very good 1-15 May exports as already expected. Weekend profit taking added weight. Firmer ringgit and easier crude mineral oil were also negative. There was light support from firmer CBT soyoil and China Dalian futures.

Prices were 12 higher to 10 lower in the morning and 11 higher to 24 lower in the afternoon. Prompt May went off board without trading. Generally, sentiment is negative on ideas that production is seasonally higher in the coming months and there is bumper soyabean supply. However, good exports are likely to continue in the coming weeks especially with festive demand for the upcoming Ramadan. Prospects of China and India replenishing existing low stocks is also supportive. Weather remains the key factor in the coming months with eyes on Indian monsoon and the situation of the US soyabean crop currently being planted.

Technical view - there is no change in the positive indicators. Good support seen at 2150.  Trend up ; RSI 52.99 ; support 2160 / 2110 / 2070 ; resistance 2235 / 2270 / 2320.

Ringgit ~ 3.5630 / 3.5650 vs USD.  For more news please go to http://jaceonmarkets.blogspot.com

In other news...

🇺🇸 U.S. stocks closed narrowly mixed in choppy trade on Friday, as disappointing data weighed on investor sentiment amid dollar declines and lower bond yields. 
* University of Michigan's consumer sentiment report came in at 88.6, the lowest in 7 months. 
* Empire Manufacturing data showed a reading of 3.09, below expectations of 5 but above last month's negative figure.
* industrial production fell 0.3%in April, the fifth straight month of declines as reduced mining and utilities output weighed, Reuters said.

€ European equities finished lower, having fluctuated for much of the session on Friday following weak U.S. data and strength in the euro.

🇨🇳 China's Shanghai Composite index closed down 1.6%, despite the country's securities regulator's attempt to calm market jitters regarding new share listings.

🇨🇳 China Apr foreign direct investment rose +10.5% y/y, stronger than expectations of +2.0% y/y.

🇭🇰 Hang Seng index widened gains in the afternoon session to close up 2% ahead of the city's first-quarter growth figures.

🇯🇵 Japanese stocks closed higher as the yen fell against the dollar on speculation the BOJ may add to stimulus to stave off deflation pressures after Japan Apr producer prices fell -2.1% y/y, the most in 2-3/4 years.

⛽ Oil fell earlier on Friday as renewed worries of a supply glut weighed on a market that traders fear is overpriced after a recent rally. However, Oil prices held steady after oilfield services firm Baker Hughes reported drillers took the fewest rigs out of U.S. oilfields since December, suggesting the collapse in drilling may be coming to an end as prices recover after falling 60 percent from June to March.

👑 Gold futures closed up modestly on Friday, logging their biggest weekly gain since mid-January as soft U.S. consumer sentiment data weighed on the dollar and further diminished expectations for a near-term rise in U.S. interest rates. Now, $1,222.15.

🌴 FCPO closed lower after choppy session. Selling was tied to lack of conviction as traders discounted a very good 1-15 May exports. Generally, sentiment is negative on ideas that productions are seasonally high for the coming months and there is a bumper soybean supply. Technical sentiment still remain positive. Good support seen at 2150.

Trading Tips for the Day - 15 May 2015

FKLI will likely open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

In other news....

🇺🇸 U.S. stocks advanced broadly Thursday, with the S&P 500 setting a new closing record high. Microsoft and Apple led a rally in technology shares and the weaker dollar spurred gains in multi-national companies. 
* Dow +191
* S&P +22
* Nasdaq +69

€ European equities finished higher, as new regulation from the European Union helped the continent's steel producers post strong gains. Moreover, strength in the euro undercuts European exporters as EUR/USD is up +0.67% at a 2-3/4 month high.

💵 The dollar fell against the euro and the British pound to multi-month lows as investors pushed back estimates for higher U.S. borrowing costs while waiting for a consistent recovery in the economy.

📝 Greece's ASE Sock Index up +1.19% after Greek Finance Minister Varoufakis said his government agrees with its creditors on most issues.

📝 Asian stocks closed mostly lower on concern a slowdown in the U.S. economy will curtail demand for Asian goods.

🇯🇵 The preliminary Japan Apr machine tool orders rose +10.4% y/y, the smallest increase in 1-1/2 years.

⛽ Oil prices fell slightly as concerns about steady production captured the market’s attention. Trading was choppy as market participants tried to square bullish factors including U.S. inventory data, spot demand for crude in Asia and Middle East unrest with basic supply fundamentals.

👑 Gold prices extended their rally to a three-month high, as disappointing inflation data fueled hopes that the Federal Reserve will put off raising U.S. interest rates.

🌴 FCPO recovered late in the session and closed higher. Late buying followed by rumors on very good 1-15 May exports data. Earlier selling due to lower China Dalian futures and strong Ringgit. Demand prospects continued to provide support. There are expectation of strong import from China and India. There higher closed keep indicator positive.

Trading Tips for the Day - 14 May 2015

FKLI will likely open lower today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

Trading Tips for the Day - 13 May 2015

FKLI will likely open lower today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, Market rose further yesterday to its highest level since 7 April. Buying was encouraged by continued gains in CBT soyoil, China Dalian futures, and crude mineral oil. Weaker ringgit, which lost about 0.5 pct vs USD, was also supportive. Technical buying as prices rose above 2200 added gains. Prices were 16 higher to unchanged in the morning and rose to 35 higher in the afternoon.

Sentiment continued to be boosted by the very good 1-10 May exports and strength in CBT soyoil inspite of the bumper South American soyabean crop. Prospect of continuing strong demand from China remains after cutting interest rates. There are also reports of El Nino weather appearing in the coming months which will disrupt production of oilseeds globally. However, existing fundamentals are not bullish with the likelihood of increasing stocks and production in the coming months.

Technical view - the break above 2200 is positive. Prices may move to 2270.  Trend up ; RSI 60.47 ; stochastic overbought ; support 2200 / 2160 / 2110 / 2070 ; resistance 2250 / 2270 / 2320.

Ringgit ~ 3.6150 / 3.6180 vs USD.

In other news...

€ European stocks were down >1% as a surge in global government bond yields undercuts stocks.  The 10-year T-note yield rose 8 bp to  a 5-1/2 month high of 2.35%, Germany's 10-year bund yield climbed 10 bp to 0.715%, and Japan's 10-year bond yield jumped 6 bp to a 2-month high of 0.45%. 

🇺🇸 U.S. stocks closed mildly lower on Tuesday, recovering from sharp morning losses as investors found some relief from a slight recovery in bonds. The benchmark 10-year Treasury bond yield traded near 2.26% after touching a 6-month high of 2.366%.

📝 Stocks recovered some of their losses on increased M&A activity after Verizon said it would buy AOL in a deal valued at $4.4 billion. Verizon shares slipped 0.4%, while those of AOL surged 19%.

📝 Greece made its 750 million-euro payment due to the IMF today and after Dutch Finance Minister Dijsselbloem, leader of the Eurozone finance ministers, said that "we are making faster progress" in Greece's debt negotiations. 

🇯🇵 The Japan leading index CI rose +0.7 to 105.5, right on expectations and the highest in 6 months.

🇳🇿 Australia's S&P ASX 200 index finished in the black for the first time in a week, ahead of the nation's annual federal budgetdue later in the day, which markets expect to show a deficit of over 40 billion Australian dollars ($31.5 billion).

🇨🇳 Today, China will release several pieces of April economic data, including fixed assets investment, industrial output and retail sales.

🇨🇳 China may relinquish its new status as the world's biggest oil importer back to US in the coming months as demand from refineries slows. The country bought about 7.4million barrels a day of crude from overseas in April, overtaking US imports of about 7.3 million.

⛽ Brent crude futures rose above $66 a barrel on Tuesday as a weaker dollar and the Yemen conflict helped lift prices. While U.S. Crude oil settled up 2.5% at $60.75 on OPEC's forecast for increased demand. The rise came despite Goldman Sachs' morning note that said the rally in oil prices was premature and itself preventing a decrease in oversupply.

👑 Gold rose up to 1% as the dollar and European shares suffered from a sell-off in global bond markets, although higher real yields kept prices under $1,200 an ounce. Now, $1,193.1.

🌱 Fundamentally speaking, the soybean market faced the most bearishly-construed data today with the 2015/16 U.S. balance sheet seeing swelling new crop supply expectations and dampening export demand. The combination of the two prompted heavy selling in the soybean complex.

🌴 FCPO closed RM2,224, highest level since 7 April. Buying was encourage by continued gain in Soyoil, China Dalian Futures and crude mineral oil. Sentiment also boosted by good export data. Price break above RM2,200 is positive from the technical view.

Trading Tips for the Day - 12 May 2015

FKLI will likely open a little lower, for the first trade, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry price.  Close your position by the end of the day.

As for FCPO, market rose yesterday on strong 1-10 May exports, which were sharply higher than estimates. Adding support were strong gains in CBT soyoil and China Dalian futures. Lack of fresh sellers also underpinned sentiment. Gains were however, capped by the bearish MPOB April data which showed bigger than expected rise in stocks. Prices were 20 to 8 higher in the morning and rose to 34 higher in the afternoon on strong support late in the session.

Market showed good strength today as traders discounted the big increase in April stocks. The big jump in exports were encouraging with prospects of strong Chinese demand, following reports of low stocks, in the coming months. The Indonesian export levy may also draw more demand to Malaysia. However, better production in the coming months may see further increase in stocks which will cap gains.

Technical view - prices remain sideways in the 2200 - 2140 range. An effective break above 2200 will be positive.

Ringgit ~ 3.5980 / 3.6000 vs USD

As for other news...

€ European stocks were down on speculation the Greek debt crisis will not be resolved anytime soon. Greek government officials are meeting Eurozone finance ministers in Brussels today and Dutch Finance Minister Dijsselbloem, who is leading the gathering, said that an accord "will surely not be reached at today's meeting."

🇺🇸 San Francisco Fed President Williams said he expects the U.S. economy to rebound in Q2 from weakness in Q1 and that he also “expects unemployment to be down to 5.0% or even lower than that by the end of the year.” He reiterated that policy makers could raise interest rates at any meeting, depending on economic data.

🇺🇸 U.S. stocks closed lower, giving back some of Friday’s gains. Treasurys tumbled as the 10-year yield closed at its highest level in more than five months.

🇬🇧 As expected, the BOE maintained its benchmark interest rate at a record low 0.50% and kept its asset purchase target at 375 billion pounds following the conclusion of the policy meeting.

🇨🇳 China's Shanghai Composite surged 3% on the back of the country's latest policy support measures.

🇨🇳 China Apr CPI rose +1.5% y/y, weaker than expectations of +1.6% y/y. Apr PPI fell -4.6% y/y, weaker than expectations of -4.5% y/y.

🇯🇵 Japan's Nikkei 225 steadied at a seven-day high, but share for Sharp plummeted nearly 30% to 196 yen following the announcement of a capital-reduction report and preferred share issuance as part of its restructuring plan. Toshiba also nosedived 16.6% after canceling a dividend payment and withdrew its earnings outlook last Friday.

🇳🇿 Australia’s conservative government led by Prime Minister Tony Abbott faces a high-stakes test as it prepares on Tuesday to unveil its second budget. Some economists predict it may need to borrow more than 70 billion Australian dollars (US$55 billion) this year to plug a deepening revenue shortfall.

 Oil prices slipped as the U.S. dollar strengthened and investors eyed concerns about weak demand in the physical market. In addition, speculation that the global oil supply glut will persist as EIA data shows U.S. Crude inventories are more than 100 million bbl above the 5-year average for this time of year.

 Gold was little changed, as the impact of a rebounding dollar ahead of talks between Greece and euro zone finance ministers and weakness in the Chinese yuan against the dollar after the PBOC cut interest rates for the 3rd time in 6 months.

 FCPO rose on strong 1-10 May exports, higher Soyoil and China Dalian. However, gain was capped by MPOB bearish data. Price remain sideway trading at 2140 to 2200.

Trading Tips for the Day - 11 May 2015

FKLI will open higher today, for the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market extended losses Friday on some evening of positions for the weekend and protection against the MPOB data and export numbers next week. Selling was prompted by lower CBT soyoil, crude mineral oil and China Dalian futures. Losses were however, held by talks of better exports in the coming weeks. Prices were 10 to 22 lower in the morning and 32 to 11 lower in the afternoon.

Market will be looking towards the MPOB April data on Monday and the cargo surveyors' export numbers for the 1-10 and 1-15 May for incentives in the coming week. Generally, a big build up in end April stocks, although expected, may curb the current bullish sentiment. Exports are expected to be higher in view of the zero CPO export duty for May which will be positive. Think market needs new factors for any major moves.

Technical view - the narrow range trading kept indicators neutral. Prices may turn sideways.  Trend sideways ; RSI 50.74 ; stochastic turned down from overbought ; support 2110 / 2070 / 2050 / 2000 ; resistance 2200 / 2250 / 2320.



As for other news...

This week focus:
(1) 🇨🇳 China's central bank unexpected cut its benchmark lending rate by 25 basis points to 5.1% on Sunday, its third reduction since November, as economic growth cools to levels not seen since the global financial crisis.

(2) any significant progress on Greek negotiations with Eurozone finance ministers meeting.

(3) whether crude oil prices extend last Friday's downward correction and help reduce the U.S. Inflation expectations

🇺🇸 April's jobs report showed a creation of 223,000 jobs and an unemployment rate of 5.4%. Analysts polled by Reuters expected the nonfarm payrolls report to show the creation of 224,000 jobs in April, with unemployment lower at 5.4%. 

🇺🇸 U.S. stocks closed sharply higher on Friday as investors cheered a jobs report that showed economic growth but not enough, in the eyes of most, to warrant central bank tightening immediately.
* Dow +267
* S&P +28
* Nasdaq +58

€ European stocks were up, led by strength in the UK FTSE 100 Index which recovered from a 1-month low and is up +1.84% after election results showed that Conservatives would win more than half of Parliament's 650 seats, outnumbering the Labour party and allow Prime Minister Cameron to end a coalition with the Liberal Democrats.  British banks and utilities rallied after the defeat of the Labour party, which had pledged more taxes on banks and fixed prices in the energy industry. 

🇩🇪 The German Mar trade balance widened to a surplus of +23.0 billion euros, a larger surplus than expectations of +20.0 billion euros.  Mar exports rise +1.2% m/m, stronger than expectations of +0.4% m/m, and Mar imports rose +2.4% m/m, stronger than expectations of +0.1% m/m and the biggest increase in 6 months.

🇨🇳 The China Apr trade balance widened to a surplus of +$34.13 billion, less than expectations of +$39.60 billion.  Apr exports unexpectedly fell for a second month as they dropped -6.4% y/y, weaker than expectations of +1.6%, and Apr imports fell for a sixth month as they slumped -16.2% y/y, weaker than expectations of -12.2% y/y.

⛽Crude oil futures settled up 45 cents, or 0.76%, at $59.39 after oilfield services firm Baker Hughes reported that the U.S. oil rig count fell for the 22nd consecutive week. Also, strong demand from China, after China Apr crude imports rose +8.7% y/y to a record 30.29 MMT. While Brent crude settled down 15 cents at $65.39 a barrel.

👑 Gold settled higher on Friday, as revisions to U.S. payrolls data supported speculation that the Federal Reserve may hold off raising interest rates in the immediate future. Now, $1,190.

🌴 FCPO (RM2,162) extended losses as lower CBT Soyoil, China Dalian Futures and crude mineral oil. This week, market players looking forward toward Monday MPOB data and exports data for 1-10 May &1-15 May. Market need new factors for any major moves.

Ringgit ~ 3.5950 / 3.5970 vs USD

Trading Tips for the Day - 8 May 2015

FKLI will likely open higher for today.  For the first trade, one can attempt to Long 1-3 points below the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market eased yesterday in narrow range trading. Prices pulled back from strong gains the past 3 days on absence of fresh factors. Selling was led by profit taking as sellers took protection against the likelihood of a negative MPOB April data coming out on Monday. Sentiment was also undermined by easier CBT soyoil and China Dalian futures. Weaker ringgit helped to check losses. Prices were 22 to 10 lower in the morning and held steadier throughout the afternoon.

There are no new factors. The relatively strong CBT soyoil, amid reports of Chinese interest, and crude mineral oil are supportive. Adding to the positive sentiment is the prospect of lower Indonesian exports due to the export levies. However, higher production in the coming months and the prospect of stocks building up are negative.

Technical view - indicators are neutral as prices retraced from the 2200 resistance.  Trend sideways ; RSI 52.78 ; stochastic overbought ; support 2110 / 2070 / 2050 / 2000 ; resistance 2200 / 2250 / 2320. 

In other news...

🇺🇸 Federal Reserve Chairwoman Janet Yellen said stock market valuations appear “quite high” and some bond and loan markets suggest investors may be taking excess risks, though she said risks to financial stability generally are contained.

🇺🇸 U.S. stocks fell after Fed Chairwoman Janet Yellen drew attention to elevated valuations in the equity market, as investors weighed higher bond yields and oil prices ahead of Friday's important jobs report.

€ European stocks were up as they rebounded from a 2-1/4 month low after the Eurozone Apr Markit composite PMI was revised upward. Investors also reacted to a slew of earnings reports and new economic data, as the euro rallied against the dollar.

🇳🇿 Australia's S&P ASX 200 index crashed to a three-month low, as the sell-off in banking shares worsened after Commonwealth Bank of Australia announced flat third-quarter cash earnings.

🇨🇳 Shares in Shanghai tumbled for a second day, pushing losses on the market’s benchmark index to 5.6% in two sessions, with comments by state-media failing to prop up the market .

🇨🇳 The HSBC/Markit services purchasing managers' index (PMI) rose to a four-month high of 52.9 in April, slightly higher than March's 52.3 and comfortably above the 50-point level that separates expansion from contraction.

 Oil prices spiked in a volatile session as weekly data showed U.S. stockpiles fell for the first time this year, but the market gave back much of its gains amid a continued bearish backdrop. For one, it showed a sharp drop in imports for the week, which analysts said played a big role in the overall stockpile decline and would likely revert to normal in the coming weeks.

 Gold prices fell, giving up earlier gains as investors grew cautious ahead of Friday’s U.S. employment data.

 MPOB is set to release April data on May 11. Market participants seen end April palm oil stocks at a 5-month high of 2.13MMT, up 14% from last month, with production up nearly 12% at 1.67 MMT. The rise is expected to solidly outpace the estimated 3% increase in exports to 1.22 MMT.

 Indonesia's president signed the new regulation putting the previously-proposed export duty on palm oil effect by the 4th week of May. A duty of $50/tonne on crude palm oil and $30/tonne for processes Palm oil products will be paid by exporters as a way to pay for domestic subsides for the developing bio-diesel industry as Indonesia aims to notably boost bio-diesel production/consumption over the coming years. The new export duty will be assessed as long as export prices are below $750/tonne. Above $750/tonne, a separate export goes into effect and will precede the bio-diesel levy.

 FCPO closed higher (RM2,183) as continue strength in CBT Soyoil, China Dalian futures and crude mineral oil. Sentiment was also underpinned by news on Indonesia's new regulation. However, price were checked by strong Ringgit and the Reuters poll showing big increase in end April stocks. Indicators are neutral to positive.

Trading Tips for the Day - 7 May 2015

FKLI will likely open lower today.  For the first trade, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, continued strength in CBT soyoil carried market higher for the 3rd consecutive day. Adding support were strong gains in China Dalian futures and crude mineral oil. Sentiment was also underpinned by news that the Indonesian President had signed the regulation to impose USD50
per tonne levy on CPO and USD30 on PPO exports. Gains were however checked by stronger ringgit, which gained about 0.8 pct vs USD today, and late Reuters poll showing big increase in end April stocks. Prices were 12 to 43 higher in the morning and held steady throughout the afternoon.

Sentiment was boosted by strong gains in CBT soyoil, China Dalian futures and crude mineral oil the past 2 days on talks of strong Chinese interest in soyoil. The expected Indonesian presidential approval of the export levy was eventually confirmed and its positiveness will hinge on Indonesia's biodiesel production and demand. Meanwhile, palm oil fundamentals are generally negative with the expected sharp increase in end April stocks and rising production in the coming months.

Technical view - prices testing strong resistance around 2200. Indicators are neutral to positive.  Trend sideways ; RSI 54.62 ; macd intersected trigger line from below ; 5-day MA intersects 20-day MA from below ; support 2110 / 2070 / 2050 / 2000 ; resistance 2200 / 2250 / 2320.

In other news...

7 May 2015 World Market Summary

🇺🇸 Federal Reserve Chairwoman Janet Yellen said stock market valuations appear “quite high” and some bond and loan markets suggest investors may be taking excess risks, though she said risks to financial stability generally are contained.

🇺🇸 U.S. stocks fell after Fed Chairwoman Janet Yellen drew attention to elevated valuations in the equity market, as investors weighed higher bond yields and oil prices ahead of Friday's important jobs report.

€ European stocks were up as they rebounded from a 2-1/4 month low after the Eurozone Apr Markit composite PMI was revised upward. Investors also reacted to a slew of earnings reports and new economic data, as the euro rallied against the dollar.

🇳🇿 Australia's S&P ASX 200 index crashed to a three-month low, as the sell-off in banking shares worsened after Commonwealth Bank of Australia announced flat third-quarter cash earnings.

🇨🇳 Shares in Shanghai tumbled for a second day, pushing losses on the market’s benchmark index to 5.6% in two sessions, with comments by state-media failing to prop up the market .

🇨🇳 The HSBC/Markit services purchasing managers' index (PMI) rose to a four-month high of 52.9 in April, slightly higher than March's 52.3 and comfortably above the 50-point level that separates expansion from contraction.

 Oil prices spiked in a volatile session as weekly data showed U.S. stockpiles fell for the first time this year, but the market gave back much of its gains amid a continued bearish backdrop. For one, it showed a sharp drop in imports for the week, which analysts said played a big role in the overall stockpile decline and would likely revert to normal in the coming weeks.

 Gold prices fell, giving up earlier gains as investors grew cautious ahead of Friday’s U.S. employment data.

 MPOB is set to release April data on May 11. Market participants seen end April palm oil stocks at a 5-month high of 2.13MMT, up 14% from last month, with production up nearly 12% at 1.67 MMT. The rise is expected to solidly outpace the estimated 3% increase in exports to 1.22 MMT.

 Indonesia's president signed the new regulation putting the previously-proposed export duty on palm oil effect by the 4th week of May. A duty of $50/tonne on crude palm oil and $30/tonne for processes Palm oil products will be paid by exporters as a way to pay for domestic subsides for the developing bio-diesel industry as Indonesia aims to notably boost bio-diesel production/consumption over the coming years. The new export duty will be assessed as long as export prices are below $750/tonne. Above $750/tonne, a separate export goes into effect and will precede the bio-diesel levy.

 FCPO closed higher (RM2,183) as continue strength in CBT Soyoil, China Dalian futures and crude mineral oil. Sentiment was also underpinned by news on Indonesia's new regulation. However, price were checked by strong Ringgit and the Reuters poll showing big increase in end April stocks. Indicators are neutral to positive.

Trading Tips for the Day - 6 May 2015

FKLI will likely open lower today, for the first trade, one can attempt to Short 1-3 points above the opening price.  Try get 5-7 points profit and put a stop 5 points away from your entry point.  Close your position by the end of the day.

As for FCPO, market jumped to a 2-week high yesterday on some positive developments over the 4-day weekend holidays. CBT soyoil and China Dalian futures rose sharply higher with talks of strong China buying of soyoil. Adding support was a weaker ringgit which lost almost 1.5 pct vs USD. Firmer crude mineral oil also underpinned sentiment. Prices gapped 66 to 47 higher in the morning and held steady throughout the afternoon.

Market is showing sensitivity to demand especially with talks of low stocks in China and India. The current discount of palm oil to soyoil also makes it difficult to ignore any rise in CBT soyoil. However, there is no change in fundamentals. Production will be increasing in the coming months. Stocks will also increase in tandem unless exports improve substantially from the previous month.

Technical view - the big rise has checked the negative indicators which are now neutral. Prices may return to fill the big gap at 2108.  Trend sideways ; RSI 50.44 ; parabolic triggered a "buy" signal at 2164 ; support 2110 / 2070 / 2050 / 2000 ; resistance 2180 / 2200 / 2250.

In other news...

🇺🇸 U.S. stocks shaved off about 1% as investors eyed higher bond yields and an unexpectedly wide March U.S. trade deficit, which sparked concerns about economic growth for the first quarter.

🇺🇸 U.S. trade deficit expanded by 43.1% to a seasonally adjusted $51.37 billion in March, the Commerce Department said. It was the largest monthly % increase since December 1996 and the largest deficit reading since October 2008.

 The dollar fell against the Japanese yen and the euro after trade data indicated a larger drag on U.S. growth than initially estimated, raising the likelihood the Federal Reserve won’t raise borrowing costs soon.

 U.S. oil prices surged above $60 a barrel as geopolitical events rattled the market. Prices gained on news that protesters in Libya had blocked a key port, interrupting more than 100,000 barrels a day of crude production.

€ European stocks were down on concern the Greek debt crisis may worsen after the Financial Times reported the IMF may cut off financial support to Greece unless European banks write off a "significant" amount of Greece's sovereign debt. On the positive side, the European Commission raised its Eurozone 2015 GDP forecast to 1.5% from a Feb estimate of 1.3%.

🇨🇳 China's Shanghai Index tumbled over 4.0% to a 2-week low on concern the government may introduce measures to cool market froth.

🇨🇳 Today, China will release its HSBC non-manufacturing purchasing managers index data for April.

 Gold retained overnight gains on Tuesday but was stuck below $1,200 an ounce as investors waited on U.S. nonfarm payrolls later in the week for clues on when the Federal Reserve will hike interest rates.

 Fed's quest for inflation giving gold bugs a new reason to cheers.

http://www.bloomberg.com/news/articles/2015-05-04/fed-s-quest-for-inflation-giving-gold-bugs-a-new-reason-to-cheer

 The Indonesian economy grew 4.71% for the first three months of 2015 from a year earlier, missing Reuters expectations for growth of 4.95%.

 FCPO jumped to 2-week high on some positive development over the 4-day holidays. CBT Soyoil and China Dalian rose sharply with talks of strong China buying of Soyoil. Additional, weak Ringgit and strong crude mineral oil added price support. The big rise in price has checked the negative indicators which are now neutral.