Trading Tips for the Day - 5 June 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 higher yesterday on good support in the afternoon. Buying was tied to bullish sentiment on ideas that short term fundamentals are supportive. Technical strength added support. Market was lower in the morning, ignoring strong gains in CBT soyoil, following losses in China Dalian futures and crude mineral oil. Prices eased 1 to 15 lower in the morning and rebounded to 31 higher in the afternoon.

The strong showing points to continuing bullish sentiment. Strength in CBT soyoil, prospects of adverse weather (particularly in India), increased use for biodiesel in Indonesia, better demand
for festive Ramadan and weak ringgit are encouraging support. However, higher production in the coming months and further scaling up of Brazil and Argentina soyabean crops should cap the upside.

Technical view - the rebound from early losses enhanced the positive indicators. Prices may move to 2400.  Trend up ; RSI 68.35 ; stochastic turned down from overbought ; support 2250 / 2225 / 2150 ; resistance 2350 / 2400 / 2450.

In other news... 

The International Monetary Fund Thursday slashed its forecasts for U.S. economic growth, calling for the Federal Reserve to hold off its first rate increase in nearly a decade until 2016.

📝 Greece and its creditors have agreed on some aspects of a deal to unlock urgent bailout aid, but differences remain on its soaring debt and the amount of fiscal pain the country will have to swallow.

🇺🇸 U.S. stocks fell, with the Dow and S&P ending at their lowest levels in nearly a month as recent volatility in bonds and lack of resolution on Greece kept investors on edge ahead of Friday's employment report. 
* U.S. weekly initial unemployment claims fell to 276,000, a bigger decline than expectations of 278,000.
* U.S. Q1 non-farm productivity was revised lower to -3.1% from -1.9%, a bigger decline than expectations of -3.0% and the largest drop in a year.

€ European stocks were down at a 4-week low after German bund prices plunged for a second day with the 10-year bund yield soaring to an 8-1/4 month high of 0.996%. Stocks were also pressured by the ongoing Greek credit crisis as the latest round of negotiations failed to yield a breakthrough.

€ As expected, the BOE maintained its benchmark rate at 0.50% and kept its asset purchase plan at 375 billion pounds following today's BOE policy meeting.

💵 The dollar index is down -0.71% at a 2-week low and EUR/USD is up +0.71% at a 2-week high as the surge in European government bond yields improves the euro's interest rate differentials against the dollar.

🇨🇳 Shanghai Composite Index closed positive 37 points, 4,947, the highest since Jan 2008 on turnover of 1.1 trillion yuan. The market reversed earlier losses that saw it plunge as much as 5.35% as investors were jittered over a clampdown on lending.

⛽ Oil prices sank to a one-week low as traders assessed ample global crude supplies ahead of the Organization of the Petroleum Exporting Countries’ Friday meeting. Also, comments from Iraq’s oil minister that Iraq plans to increase its oil exports by +100,000 bpd this month, which would exacerbate the global crude oil supply glut.

👑 Gold prices sank to a five-week low, after the International Monetary Fund slashed its forecast for U.S. growth and warned that inflation remains elusive. Moreover, fund continued selling of gold as long ETF gold positions dropped to a 6-year low of 1,593 MT on Wednesday. Now, $1,177.10.

🌴 FCPO (RM2,319) closed higher today as good supportive fundamental in short term. Market was lower at morning session following losses in China Dalian and crude mineral oil. Weak Ringgit also added support. The rebound from early losses enhanced the positive indicators.

🌺 FBMKLCI index June semi-annual review: Westports Holdings Bhd will replace Felda Global Ventures Holdings Bhd (FGV) in the list of 30 FBM KLCI constituent stocks come June 22, 2015.