Trading Tips for the Day - 19 June 2015

FKLI will likely open higher 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 eroded to its lowest level since 29 May. Selling followed sharply lower close in China Dalian futures. Stronger ringgit, which gained about 1.3 pct vs USD, added pressure. Technical sell stops as prices broke below 2250 magnified losses. Prices gapped 21 to 39 lower in the morning and extended losses to 56 lower in the afternoon, closing around the low.

In the absence of adverse weather reports, there is little bullish incentive. Most reports are indicating the possibility of El Nino weather towards the last quarter of the year. Seasonal weak period towards the peak production months of August - October will likely dominate sentiment. However, strong demand for festive Ramadan will provide some short term support.

Technical view - the break below 2250 turned indicators negative. Prices may move to 2200. Ringgit ~ 3.7080 / 3.7100 vs USD.  trend sideways ; RSI 47.74 ; parabolic triggered a "sell" signal at 2261 ; 5-day MA intersected 20-day MA from above ; support 2225 / 2150 / 2120 / 2070 ; resistance 2280 / 2330 / 2360 / 2400 / 2450.

In other news...

🇺🇸 U.S. stocks rose broadly, propelling the Nasdaq to a record high, as investors embraced signs that the Federal Reserve would take a slow approach to raising rate.
* Dow 18,115 (+180)
* S&P 2,121 (+20)
* Nasdaq 5,132 (+68)

🇺🇸 U.S. consumer prices posted the largest monthly increase in May in more than two years, a sign modest inflation pressures are beginning to build.

💵 The dollar index is down -0.52% at a 1-month low after the Fed on Wednesday signaled a gradual pace of tightening.

€ European equities closed higher on Thursday, as a key meeting of euro zone finance ministers started in Luxembourg, where Greece could be presented with a "take-it-or-leave-it" reforms-for-rescue plan.

🇯🇵 Japan's Nikkei Stock Index down -1.13% at a 4-week low as a rally in the yen to a 1-week high against the dollar dragged down Japanese exporters.

🇨🇳 China’s stock market fell sharply Thursday, with the smaller ChiNext index suffering one of its worst days on record, as analysts turn increasingly wary of what they see as a bubble in the country’s equities.

🇨🇳 China's new home prices fell in fewer cities for a third month as the government removed some property curbs and interest rates fell. The National Bureau of Statistics reported that May new-home prices fell 41 of the 70 cities tracked by the bureau.

🇨🇳 China May foreign direct investment rose +7.8% y/y, less than expectations of +8.0% y/y.

⛽ Oil prices rose for a third straight day, helped by a weaker dollar and data showing draws this week at the delivery point for U.S. crude futures.

👑 Gold prices soared to their highest level in nearly four weeks as buyers flocked back to the market in response to the Federal Reserve’s cautious tone on raising interest rates and as concerns about Greece stoked demand for a haven. Now, $1,201,25.

🌴 FCPO (RM2,237) eroded to its lowest level since 29 May. Selling followed sharply closed in China Dalian futures and strong Ringgit. Technical sell stop at 2,250 added selling pressure. Price below 2,250 turned indicators negative. Prices may test 2,200.

🌺 PM Najib said Putrajaya's debt as of March this year stood at RM596.8 billion or 51% of GDP. Of the amount, 97% is domestic debt and balance is offshore loans.

🌺 FBMKLCI is expected to stay weak as TNB could continue to weigh on the local market sentiment after the news that the state-owned utility would buy a 70% stake in Malaysia's 3B power plant project from 1MDB.