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.