Futures

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, 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


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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

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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.