Trading Tips for the Day - 18 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 day.

As for FCPO, market closed little changed after trading on either sides of the previous day's close. Bearish sentiment prompted selling in the morning. Higher CBT soyoil and China Dalian futures gave no impact. Better interest in the cash market encouraged support in the afternoon. Strong gains in crude mineral oil in Asian trade was also supportive. Prices were 1 to 11 lower in the morning and rose to 12 higher in the afternoon before easing towards close.

Market is holding sideways. Good exports and the implementation of the export levy by Indonesia are positive. The regulation by US Food and Drug Administration to ban artificial trans fats is favourable for palm oil but its impact is negligible. Higher production in the coming months continue to weigh on sentiment although weather is likely to be the key factor.

Technical view - prices move sideways in a 2250 - 2350 range. Ringgit ~ 3.7570 / 3.7590 vs USD.  Trend sideways ; RSI 58.38 ; parabolic SAR at 2261 ; support 2250 / 2225 / 2150 ; resistance 2330 / 2360 / 2400 / 2450.

In other news..

🇺🇸 The forecasts released by the Fed showed most officials expect to begin raising short-term interest rates before the end of the year. But Fed officials lowered their interest-rate forecasts for 2016 and 2017 by a quarter percentage point, suggesting they've become less certain about the strength of the U.S. economy in the longer run.

🇺🇸 U.S. stocks ended slightly higher after the Federal Reserve signaled that interest rates could increase more slowly than officials had expected.

€ European equities closed lower as investors awaited the conclusion of a two-day policy meeting of the U.S. Federal Reserve and a gathering of the European Central Bank's (ECB) Governing Council.

€ ECB is expected to review its Emergency Liquidity Assistance (ELA) to Greece at a non-monetary policy meeting in Frankfurt. The ELA is extended by the Greece's central bank to its struggling lenders, but comes, ultimately, from the ECB.

€ The Eurozone final-May CPI was left unrevised at +0.2% m/m and +0.3% y/y. The Eurozone final-May core CPI was left unrevised at +0.9% y/y.

🇯🇵 The Japan May adjusted trade deficit of -182.5 billion yen was slightly narrower than market expectations of -184.0 billion yen.

📝 Bank Indonesia’s Board of Governors is scheduled to issue its monetary policy decision Thursday.

⛽ Oil prices swung over a wide range but ended little changed, as a dovish Federal Reserve statement helped the market recover from a selloff after disappointing U.S. stockpile data.

👑 Gold prices rose in electronic trading, after the Federal Reserve gave a less optimistic than expected assessment of the U.S. economy and signaled that it may raise rates less steeply than anticipated in the coming cycle. Now, $1,186.

🌴 FCPO (RM2,291) closed unchanged. Bearish sentiment prompted selling in the morning session. Better interest in the cash market encouraged buying. The regulation by U.S. Food and Drug Administrative to ban artificial trans fats is favorable for palm oil but its impact is negligible.

Trading Tips for the Day - 17 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 day.

As for FCPO, market traded higher yesterday in the absence of fresh factors. Buying was led by ideas of technical correction with the stochastic indicating oversold. Support followed higher China Dalian futures 

and e-CBT soyoil. A smaller than expected rise in the 1-15 June production by Southern POMA also underpinned sentiment. There was light selling pressure early from lower CBT soyoil which found good support. Prices were 5 lower to 19 higher in the morning and rose to 31 higher in the afternoon.

Generally, there are no new factors. Market is correcting from recent decline after the very good 1-15 June exports and some estimates that production is about unchanged in June vs May. The upcoming Indonesian export levy is also supportive. However, concerns over increasing production in the coming months and big soyabean supplies will continue to weigh on sentiment.

Technical view - prices correcting from the oversold situation in the stochastic, keeping within the 2250 - 2350 range. Ringgit ~ 3.7500 / 3.7520 vs USD. Trend sideways ; RSI 58.38 ; parabolic SAR at 2261 ; stochastic turned up from oversold ; support 2250 / 2225 / 2150 ; resistance 2330 / 2360 / 2400 / 2450. Interested to trade futures?

In other news...

The FOMC is meeting Tuesday and Wednesday to decide its next move. The central bank has kept U.S. interest rates pinned near zero since late 2008 in the hope of spurring an economic recovery. While investors don’t expect the Fed to raise rates at this meeting. The federal funds futures market indicates a 43% chance of a 25 bp rate hike at the next FOMC meeting on July 28-29, a 73% chance of a rate hike by the Sep 16-17 meeting, an 84% chance of a rate hike by the Oct 27-28 meeting, and a 100% chance of a rate hike by the Dec 15-16 meeting.

📝 The markets are looking ahead to today’s weekly ECB meeting on Greece and tomorrow’s Eurozone finance ministers meeting. Greece is hoping that Eurozone finance ministers at their meeting tomorrow, or Eurozone leaders at next Thursday’s (June 25)summit in Brussels, will soften their demands. Greece could potentially stretch negotiations into July if it can either make the 1.5 billion euro payment that is due to the IMF on June 30 or be granted a 30-day grace period on making that payment.

🇺🇸 U.S. stocks rose, rebounding from two days of losses, as investors awaited news on Greece’s bailout talks and the outcome of the Federal Reserve’s policy meeting.

€ European equities closed higher after paring losses in earlier trade, with investors keeping watch for developments in Greece and a two-day policy meeting at the U.S. European stocks also took a hit after the German May ZEW investor confidence fell for a third month to the lowest in 7 months.

🇨🇳 China's Shanghai Composite Index down -3.47% at a 1-1/2 week low on valuation concerns, worries of a fresh clampdown on margin financing and a new wave of initial public offerings (IPOs).

🌺 Shares of Kuala Lumpur-listed AirAsia doubled losses to more than 8%, hitting their lowest levels since August 2010, after group CEO Tony Fernandes said the airline will raise funds at loss-making associates and sell planes to pare down debt in a note issued yesterday.

⛽ U.S. oil prices climbed on strong demand for crude and the threat of a tropical storm along the Gulf Coast.

👑 Gold fell as some investors cut back holdings due to pressure from a stronger dollar and as a precaution ahead of the Federal Reserve’s monetary policy decision. Now, $1,181.70.

👑 Bank of China has become the first Chinese bank to participate in the London gold price fix, the latest example of the country’s push deeper into global financial markets.

🌴 FCPO (RM2,291) closed higher as supported by higher China Dalian futures and Soyoil. Technical correction with the stochastic indicating oversold also added support. Generally, there are no new factors. Market is correcting from recent decline after a very good exports data and some estimates that production is unchanged in June vs May.

Trading Tips for the Day - 16 June 2015

FKLI will open lower today, for the first trade, one can attempt too short one two three points above the opening price. Try and get five to seven points profit and put a stop 5 points away from your entry point. Close the position by the end of the day.

Trading Tips for the Day - 15 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 eroded to a 2-week low today. Selling was prompted by sharp losses in CBT soyoil and China Dalian futures. Expectations of higher stocks from seasonally peak production months in August - October continued to undermine support. Late news that Indonesia will commence the export levy on palm oil from 15 June helped to check losses. Prices gapped 25 to 38 lower in the morning and remained weak most of the afternoon before recovering to 9 lower towards close.

There is more emphasis on seasonal weakness from increasing production in the coming months. Demand is not expected to be big enough to prevent higher stocks especially with the current bumper soyabean supplies. However, talks of El Nino weather, if it materializes, will turn sentiment bullish. The start of the Indonesian export levy to assist biodiesel production is positive as it may lead to more exports from Malaysia.

Technical view - the break below 2275 is slightly negative. Prices may test the 2250 support. Ringgit ~ 3.7560 / 3.7580 vs USD.  Trend down ; RSI 56.39 ; parabolic SAR at 2254 ; stochastic slightly oversold ; support 2250 / 2225 / 2150 ; resistance 2330 / 2360 / 2400 / 2450.

In other news...

🇺🇸 U.S. stocks closed lower on Friday, as continued uncertainty over Greece pressured stocks and investors kept an eye on a calmer bond market ahead of this week's Federal Reserve meeting. Losses in stocks were limited after the early-Jun U.S. consumer sentiment index from the University of Michigan rose +3.9 to 94.6, stronger than expectations of +0.5 to 91.2.

€ European stocks were down as Greek default concerns intensified after European Union President Tusk said "there is no more time for gambling."

📝 Greek bank stocks tumbled and Greece's ASE Stock Index is down -2.83% as Tusk rebuked Greek Prime Minister Tsipras for dragging his feet on a debt agreement. According to two officials present at the talks, policy makers are now examining all scenarios if Greece refuses to compromise, including the possibility that Greece is forced to leave the Eurozone.

🇨🇳 China's Shanghai Composite Index up +0.87% at a new 7-1/3 year high on speculation the PBOC may cut banks' reserve requirement ratios as early as this weekend.

⛽ Oil settled more than 1% lower on Friday after oilfield services firm Baker Hughesreported its U.S. rig count declined for a 27th straight week.

👑 Gold inched lower, shrugging off the slightly weaker dollar, lower equity markets and uncertainty over the Greek debt crisis, as traders were cautious ahead of the U.S. Federal Reserve's policy-setting meeting next week. Moreover, Gold closed lower on reduced demand for gold as an inflation hedge after the May final-demand core PPI fell to +0.6% y/y, the weakest pace since the data series began in 2010.

🌴 FCPO (RM2,276) closed at 2-week low as sharp losses at China Dalian Futures and CBT Soyoil. Price supported from low after news that Indonesia will commerce an export levy on palm oil effective from 15 June. However, market still emphasis on the seasonal weakness from the increasing production in the coming months. Price break below 2275 is slightly negative.

Trading Tips for the Day - 16 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 day.

As for FCPO, slow session yesterday, lacking fresh incentives. Market closed little changed after trading on either sides of the previous day's close. Easier CBT soyoil and China Dalian RBD olein prompted
selling. Ideas that the market was due for a rebound after dropping the past 3 days, encouraged support. Weaker ringgit and strong gains in crude mineral oil were positive but largely ignored.  Prices were 3 higher to 11 lower in the morning and 12 higher to 3 lower in the afternoon.

The higher end May stocks and the approaching peak production period in the coming months continue to weigh on sentiment. Prospects of adverse weather, amid forecast of El Nino, increased use for biodiesel and better Ramadan demand have not made their mark yet. Meanwhile, the USDA supply - demand reports were slightly supportive for soyabean with lower carry out stocks.

Technical view - prices remain in a sideway range of 2250 - 2350.  trend up ; RSI 59.76 ; parabolic SAR at 2253 ; support 2275 / 2250 / 2225 / 2150 ; resistance 2330 / 2360 / 2400 / 2450.  

In other news...

 The International Monetary Fund said it was halting its bailout talks with Greece in a stark signal of its exasperation about a lack of progress toward a deal needed to avert a Greek default.

🇺🇸 U.S. stocks gained after data showed retail sales rose in May, boosting optimism about the economic outlook and healthy consumer spending. The Dow had seen a triple-digit rise early in the session, but it pared gains after optimism faded that a Greek debt deal will soon be reached when the IMF negotiating team withdrew from the Greek debt talks in Brussels and said that “major differences remain.”

💵 The dollar remained higher against the euro and the yen, as investors continued to digest U.S. data that indicates a slowly recovering economy and higher interest rates in the coming months.

📝 Twitter CEO Dick Costolo Stepping Down on July 1, as the company struggles to convince Wall Street of its growth strategy.

€ European stocks were up as Greek stocks surged over 6% on optimism that Greece can reach a deal with its creditors to receive financial aid. Eurozone officials try to impose deadline of next Thursday for Greek agreement.

📝 The 10-year Greek bond yield dropped to 11.40% and has fallen more than -80 bp from Wednesday's 6-week high of 12.21% after the ECB increased the limit on Emergency Liquidity Assistance to Greek banks by 2.3 billion euros to a total of 83 billion euros.

🇯🇵 Japanese exporters rose as the yen weakened against the dollar.

🇨🇳 Shanghai Composite index ended up 0.3% amid choppy trade as the release of April fixed asset investment, together with May retail sales and industrial production, matched analysts' expectations.

🇨🇳 China May industrial production climbed +6.1% y/y, stronger than expectations of +6.0% y/y.

🇨🇳 China May new yuan loans rose 900.8 billion yuan, higher than expectations of 850.0 billion yuan.

⛽ U.S. oil prices slipped from a six-month high on a stronger dollar and concern that the global oil glut will persist after IEA data showed Saudi Arabian May oil production at a record 10.25 million bpd and Iraq May crude output at a record 3.85 million bpd.

👑 Gold closed lower as the stronger dollar and fund selling of gold as long gold positions in ETFs on Wed fell to a 6-year low of 1.587 MT.

🌴 FCPO (RM2,292) closed little changed after trading either of the previous day's close. Slow session as lack of fresh incentives. Price remain sideways range.

Trading Tips for the Day - 11 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 day.

As for FCPO, market closed lower for the 3rd consecutive day. Selling followed the slightly negative MPOB May
data which showed higher stocks and better production. Early pressure came from easier CBT soyoil and China Dalian futures with firmer ringgit adding weight. Losses were held by very high 1- 10 June exports and stronger crude mineral oil. Prices were 2 to 23 lower in the morning and extended losses to 36 lower in the afternoon.

Market is showing better negative sentiment with more concern over the approaching peak production period of August - October. The higher end May stocks point to ample supply especially with production increasing in the coming months. However, prospects for good exports to continue ahead of the festive Ramadan, increased use for biodiesel and the El Nino weather are keeping bullish hopes alive. Meanwhile, the USA supply - demand reports tonight are expected to affirm record global soyabean supplies.

Technical view - prices moved back into the consolidation range of 2250 - 2350.  Trend up ; RSI 59.62 ; support 2275 / 2250 / 2225 / 2150 ; resistance 2330 / 2360 / 2400 / 2450. 

In other news...

🇺🇸 U.S. stocks rose sharply as technology and financial shares pulled ahead and investors embraced encouraging signals about Greece’s financing talks. 
* Dow +236
* S&P +25
* Nasdaq +62

🇺🇸 The U.S.’s AA+ credit rating was affirmed by Standard & Poor’s, which cited the resilience of the economy and the status of the dollar.

€ European stocks were up 1 to 2% and found support on optimism that Greece can find a solution to its debt crisis as Greek Prime Minister Tsipras meets with German Chancellor Merkel and French President Hollande in Brussels today.

📝 The ECB increased the amount of money Greek banks can borrow under an emergency lending program, a Greek bank official said, continuing a lifeline for the country’s banks as tense negotiations between the Greek government and its creditors continue. Meanwhile, S&P downgraded Greece’s credit rating deeper into junk.

🇨🇳 China pared losses after stemmed from a decision by index provider MSCI Inc. not to add Chinese domestic stocks to its widely tracked emerging markets index.

💵 💴 The dollar index is down at a 3-week low on strength in the yen as USD/JPY is down -0.92% at a 2-week low after BOJ Governor Kuroda said "the yen is unlikely to weaken further." Now, ¥/$ 123.02.

📝 The New Zealand dollar slumped to its lowest in almost five years after the nation’s central bank unexpectedly cut interest rates. Reserve Bank Governor Graeme Wheeler has cut rates from 3.5 per cent to 3.25 per cent and warmed of more to come.

⛽ U.S. oil prices rose to a new 2015 high after U.S. data showed stronger-than-expected demand for crude oil and gasoline. U.S. crude-oil stockpiles dropped by 6.8 million barrels in the week ended June 5 to 470.6 million barrels, the U.S. Energy Information Administration said Wednesday.

👑 Gold prices advanced to a one-week high, as some investors bought the metal to gird against a weaker dollar and turbulence in bond markets. Now, $1,185.90.

🌴FCPO ( RM 2291) closed lower for the 3rd consecutive days. Selling followed the slight negative MBOP May data which showed higher stocks and better production. Lower Soyoil & China Dalian added pressure. Market concerns over approaching peak productions period of Aug to Oct. However, prospects better exports continue for the coming Ramadan festival, increased use of biodiesel and formation of El-Nino are keeping demand. Price may consolidate at 2250 to 2360.

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.