Trading Tips for the Day - 10 June 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 trading day.

As for FCPO, market eroded yesterday following sharp drop in China Dalian futures and CBT soyoil. Sentiment was also undermined by softer crude mineral oil and stronger ringgit, which gained more than 0.5 pct vs USD. Continued liquidation and position squaring ahead of the MPOB May data tomorrow added weight. Losses were held by some forecast of El Nino weather and rumours of good 1-10 June exports. Prices gapped 22 to 44 lower in the morning and remained soft most of the afternoon before recovering some losses towards close.

There were late rumours that the 1-10 June exports to be reported by the cargo surveyors tomorrow are about unchanged vs a month ago. This will be supportive. Forecast by the Australian Meteorology Bureau that El Nino weather is developing is also positive. MPOB data tomorrow will not have much impact unless the numbers vary from the Reuters and Bloomberg polls.

Technical view - prices are falling back into a 2250 - 2360 range. Indicators are still positive.  Trend up ; RSI 65.08 ; support 2275 / 2250 / 2225 / 2150 ; resistance 2330 / 2360 / 2400 / 2450. 

In other news...

🇺🇸 U.S. stocks ended little changed as investors eyed recovery in bond yields and economic indicators that could shed light on the timing of a rate hike, amid continued Greece debt negotiations.

🇺🇸 Dow Jones Transportation Average falling closer toward correction territory. The average is off 9.9% since it last hit an all-time high on Dec. 29, 2014. The drop in transportation stocks is commonly seen as a warning signal for the broader stock market.

€ European stocks were down at a 3-1/2 month low on signs that Chinese growth may be slowing after CPI data. Also, Greek default concerns remain as the Greek 10-year bond yield rose +24 bp to 11.54% after German Chancellor Merkel said "there isn't much time left" for Greece to find a deal with its creditors.

🇨🇳 China's Shanghai Composite fell -0.36%, although losses were contained on speculation the slow pace of inflation will allow the PBOC to expand stimulus. Also, China shares falling ahead of a decision by MSCI on whether it will include Chinese domestic stocks in its benchmarks.

🇨🇳 China May CPI rose +1.2% y/y, less than expectations of +1.3% y/y. May PPI fell -4.6% y/y, unch from Apr and a bigger decline than expectations of -4.5% y/y.

💴 The yen edged higher against rivals as signs of falling prices in China renewed fears of global deflationary pressures, sending some investors into assets that are perceived to hold their value in turbulent markets, such as the Japanese currency. Now, JPN/USD 124.34.

⛽ Oil prices gained on expectations of a sixth straight weekly decline in U.S. crude supplies and a weaker dollar.
* U.S. crude $60.14 (+$2.00 / 3.44%)
* Brent $65 (+$2.40)

👑Gold prices settled higher as investors sought out the safe-haven metal while European stock markets slipped. Now, $1177.70.

🌴 FCPO (RM2,317) closed lower following sharp losses at China Dalian futures and Soyoil. Investors continued profit taking and position alignment ahead of the MPOB May data. However, late support as rumors of good 1-10 June exports and forecast of El-Nino is developing. Price may range at 2250 to 2360. Indicators are positive.