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

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