Trading Tips for the Day - 1 June 2015

FKLI will 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 higher Friday as positive sentiment dominated. Fresh sellers were lacking. Support followed continued weakness in ringgit, which lost about 0.6 pct vs USD today, and steady China Dalian futures. Higher CBT soyoil and crude mineral oil in Asian trade were also supportive. Some early selling on ideas of technical correction from the overbought stochastic did not follow through. Prices were 8 lower to 15 higher in the morning and held steady at 1 to 11 higher in the afternoon.

The strong showing today, inspite of weekend and sharp gains this week, showed better bullish sentiment. Traders were also unmoved by rumours of slower pick up in the last few days of May exports. More emphasis seemed to be given to reports of El Nino weather with reports of severe heat and drought in the southern part of India. The short term outlook remains positive with prospects of good demand continuing in view of the upcoming festive Ramadan and the implementation of export levy by Indonesia. The ringgit is also expected to remain weak.

Technical view - indicators remain positive. Prices may move to 2250. Ringgit ~ 3.6640 / 3.6670 vs USD.  Trend sideways ; RSI 58.50 ; stochastic overbought ; support 2150 / 2120 / 2070 / 2000 ; resistance 2235 / 2270 / 2320.

In other news...

This week markets focus: 
(1) key U.S. economic data including May ISM manufacturing index (expected +0.5 to 52.0) and Friday’s May payroll report (expected +225,000)
(2) the Greek situation as negotiations remain very difficult but as Greece is expected to either make Friday’s 300 million euro IMF payment or bundle all the June payments into a single payment due at the end of the month.
(3) increased focus on the Iran nuclear negotiations, which are heating up ahead of the June 30 deadline for an agreement.
(4) this week’s ECB and BOE meetings, which are not expected to produce any policy changes

🇺🇸 U.S. stocks closed lower on Friday as carry-over weakness from a drop in European stocks on the unresolved Greek debt crisis and the unexpected -6.1 point drop in the May Chicago PMI to 46.2, weaker than expectations of +0.7 to 53.0. 
*Dow -115
*S&P -13
*Nasdaq -27

€ European stocks were down as the Greek debt situation remain unresolved. Greece hasn't yet said how it will pay almost 1.6 billion euros in IMF payments scheduled for next month, with the first transfer due next Friday, Jun 5.

€ Eurozone Apr M3 money supply rose +5.3% y/y, stronger than expectations of +4.9% y/y and the fastest pace of increase in 6 years.

🇩🇪German Apr retail sales rose +1.7% m/m, stronger than expectations of +1.0% m/m and the highest in 6 months.

🇯🇵 Japan's Nikkei Stock Index closed up +0.06% after the Japan Apr jobless rate unexpectedly fell -0.1 to an 18-year low of 3.3%. Japan Apr national CPI rose +0.6% y/y, right on expectations and the slowest pace of increase in 22 months.

⛽ US oil settles up $2.62, or 4.5%, at $60.30 a barrel as Energy firms pulled another 13 rigs from U.S. oil fields this week, the biggest drop in four weeks. July Brent, meanwhile, was up $3, or 4.8 percent, at $65.53.

👑 Gold edged up on Friday from the previous day's 2-1/2-week low, supported by a softer dollar and uncertainty over Greece's debt talks, but remained under pressure from expectations U.S. interest rates might rise soon. Now, $1,190.35.

🌴 FCPO (RM2,216) closed higher as positive sentiment dominated as higher CBT Soyoil and China Dalian futures. The short term view remains positive on prospect of better demand for the upcoming festival.