A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash.

** Source from: www.investopedia.com

Thursday, November 12, 2009

Choppy trading times

FKLI regained composure during late evening yesterday to close at 1268.5, a drop which was rallying from around 1274-1275 range. However, it recovered from a morning drop to a low 126x range

FCPO on the other hand opened lower and dropped to a day low of 223x bt quickly regain composure and stood at 2265. Due to slight rises of regional crude and soy oil, it went up to a day high of 2297 where psychological resistance at 2300 remains strong which led FCPO to drop further.

Currently, crude oil dropped a big -2.06 to stay at a 76.xx price and Dow dropping -90++ points. This could strongly spell short for both FKLI and FCPO today.

My Opinion: FCPO to short and stop loss at 2300 and FKLI to short while stop loss at 1280.

- Posted using BlogPress from my iPhone

Thursday, October 22, 2009

Crude and soy losing momentum

FCPO opened higher which crossed the psychological resistance @ 2200 and rised to a day high at 2225 due to crude oil breaking the $80 dollar per barrel resistance.

But later in the evening, both crude and soy oil losses momentum and currently crude is -1.35 down residing at marginal 80.01

My opinion: Go for short and place stop loss at 2225

- Posted using BlogPress from my iPhone

Wednesday, October 21, 2009

FCPO to bull today

FCPO should be bullish today as NYMEX crude oil rises to a new high residing above $80 per barrel.

My opinion: Go long and put stop loss at 2155

- Posted using BlogPress from my iPhone

Tuesday, October 20, 2009

FCPO remains bullish

Palm oil stays within range for now. Market is very quiet and traders are waiting for a signal to proceed. Probably would be the Malaysian 2010 budget. Trading now could be tricky and stop losses are highly recommended this time.

My Opinion: Go for long position at a low point of 2160 and cut loss at 2110. 

Sunday, October 4, 2009

FKLI to drop for oct contract

We have seen that FKLI is heading downward as economic data from the US was worst than expected and there is doubt on economy rebound. Therefore, a short signal has been shown earlier. Therefore, advisable to hold short position. Strong support at 1200. Last friday, it break through 1200 but then later it rebound back above 1200. So, 1200 work as a support, once it break through and able to keep it. then the momentum to move downward will be more strong.

My Opinion: Hold short position and put a stop loss at 1220

FCPO in trading range

FCPO is currently trading in a range. Any breakout could trigger a move. Breakouts with good volume will guide us where to trade. As for now, the range is confortably cap at 2090 - 2125.

(My Opinion : holds short with recommended stop at 2155 for lower risk player and stop at 2190 for higher risk player)

FCPO still on short position

FCPO remains weak amid the aggressive buying pressure witnessed last week. It is believed that the buying pressure is due to a fake technical breakout with the concern of the weakening US$.

weak CPO data also explains the weakness in the CPO pricing. The data are as per below:

Export Data 1-25 Sep vs Aug
ITS: 963,814 vs 1,000,846 (-3.7%)
SGS: 1,042,281 vs 1,003,566 (+3.86%)

My Opinion : previous recommended stop has been triggered at 2130(opening of the following day). Current recomendation is to hold short with a stop at 2190.
*Bare in mind this trade is little tricky and is adviced to avoid if trader is not a risk taker.

Monday, September 21, 2009

FCPO pushed up but does it continue?

15 minutes chart


Daily 1-year

The FCPO is speculated to be on the bullish side.However, based on the 15 minutes chart, the FCPO closed at 2190 which is lower than the bolinger band's average line. MACD shows both lines together and not crossing each other until the end of it where there is a very very small drop below the red-dashed line. Regionals on Crude oil and soy oil are both on the red zone with crude oil dropping -2.83 to 69.21 while soy oil drops -0.23 to a 34.87 at this time (quotes stated are as from 11.09pm 21st Sept 2009). Also, by looking on last 15 minute chart, it closed -13 points lower which could spell shorting signs. By looking at this same chart, 7 and 14 MA seems to have crossed each other and it's slightly on the positive turn at the closing. Daily chart shows that 7 MA is shifting a little upwards to cross the 14 MA. MACD shows that the black and red-dashed lines are about to cross.

Well, there are some indicators that shows bullish signs but crude and soy oil seems not to be doing well which could spell trouble for the FCPO. Regional markets especially Europe are also on the red zone and that could explain the big drop in closing last Friday

My Opinion: Short positions, place stop loss at 2210 and long positions, hold on to the position if it breaks 2210.

FKLI pushing strong

15 minutes chart

Daily 1-year

FKLI had been pretty strong throughout the day. Volume picked up in the equities indicating improve interest in the market. Overall regional indexes has been strong throughout the day allowing both index and futures to make new high today. Optimism in the recovery in US has been broadly discussed throughout the media today which supports the overall market.

My Opinion : Hold long position and stop to be moved up to 1195; previous recommended short position should have been closed at 1218

**Chart from OSK's 188OMS

Wednesday, September 16, 2009

Gap covered but what's next for FCPO?

15 Minutes Chart
Daily 1-Year Chart

FCPO today continued to rise up further to cover the gap that was done on Monday giving a day high at 2181 which actually had broken the new high of 2180 by one point. This could spell trouble for people who have short positions. Looking at the 15 minutes chart, on 7,14 and 30 MA, it has shown positive signs but MACD shows an that both lines are on the same level. Looking at new highs created, it is could likely be another bounce up. However, base on the Daily 1-year chart, the trend seems to still be down by looking at the 7,14 and 30 MA's but at the tip of the 7 MA, seems to be curving upward but still has no crosses with 14 and 30 MA. MACD also shows for the daily 1-year chart that it is still trending downwards but be alert for spikes.
My Opinion: For short positions, place a stop loss at 2195 and for those who have long positions, hold on to it if it breaks 2195. 

**Chart from OSK's 188OMS

Monday, September 14, 2009

FKLI showing weaknesses or still strength to bull on?

Daily 1-year 
Weekly 2-years
FKLI showing some weaknesses in the Daily chart but on the weekly chart, it still shows strong bullish upside. Even with regional indexes had shown red the entire day but FKLI managed to hold above its psychological support at 1200 which means that, it's still likely to bull further.

My Opinion : Hold long and place a stop loss at 1185-1190

**Chart from OSK's 188OMS