Morning delayed updated

Morning traders,

I will be going into the office later so I'll post the updated a bit later.

I don't have the charts with me here but here is just a brief thought before the market opened:

Us closed mildly up, recovered heavy losses during the day.

Fkli trading at near support at 92 for june. Today is Friday so be more careful. If support holds, then maybe you can scalp upwards. If I remember correctly, major support is at 85 and 76.

Be watchful of a downside break out to test these support too!

Trade safe.. :)

I'll post the updates a bit later! Ciao!

Best wishes,
Tech Trader

Mid-day update

Hello Traders,

Wow.. what a reversal!

July gapped up in the morning and went all the way to 1612. Initially I wanted to take profit there and considered turning short. But with the strong Monday rally fresh in my mind, I decided against it and cancelled my order. Price started reversing and took out our break even stop loss at 1601.50.

I did not take any trades after that so I missed the down move. But it is ok. with the Felda listing today, the volume was very low in the morning on the index linked stocks. I think I would rather sit out for today and wait for market to resume normal trading again next week.

I'll come back to update again later if there is anything urgent.

Best Wishes,
Tech Trader

Morning Updates - 28th June 2012

Morning Traders,

Alright lets get on with the show.

The US market closed up after good housing data, up by a decent amount, not a full bull type of a day. I think market still favours sideways to an upside market. But the 50ema is just somewhere up there on the S&P so we need to be watchful for that as well.

We have the EU Economic summit today so I think traders will be cautious until the event is over. I think unemployment claims numbers won't have such a big surprise tonight as well.

------

Alright.. in our local FKLI, I am still long July 1601 from yesterday. I'm not sure how much we will gap up today. If we gap up a lot, then I will take profits, then reposition for price to test the long side again.

You need to be careful to short a strong market here. If the regional market rallies, then our market would take this opportunity to rally further.

Trade safe and watch your levels.

Here are your trading levels for today:

FKLI

Upper Resistance: 1608, 1612, 1615, 1618
Lower Support: 1601, 1598, 1595, 1591

Cash Index

Upper Resistance: 1605, 1607, 1609, 1611
Lower Support: 1601, 1598, 1595

Bring home the bacon!

Best Wishes,
Tech Trader

Morning Updates - 27th June 2012

Morning Traders,

Alright everyone.. the show goes on..

How are you all doing? Wow.. yesterday after my post of absence the market tanked quite hard.. Lets see what's in store for us today.

The US market closed mildly up. At one point, it was trading in the red too. We are looking at some pending home sales tonight which I think won't be too bad and also the EU economic summit tomorrow. I expect trading to remain cautious until at least Friday. Volatility is trading at around 19.70 now so we have a bit of expansion there.

----

As for our local market, the pull back yesterday was a relief. Whether it will continue to fall remains to be seen. But I think there will be quite some strong support at 88-85 (sorry.. earlier typo said support at 98-95 - correction done) level so you need to be careful.

July is trading at a much higher level so traders are quite bullish in this market at this moment.

I am thinking to see how price react once it test these support. If price are holding, I am looking for price to go back up to test the highs in the coming days. So trade safe. Keep in mind of the EU economic summit tomorrow too. It is better to reduce trading size or just on the side lines until further confirmation.

I'm hoping to see price test the support and if it can't break, I will go long from there. Watch your levels carefully.

Here are your trading levels:

FKLI

Upper Resistance: 1593, 1596, 1598, 1601
Lower Support: 1590, 1587, 1585, 1583, 1580

Cash Index

Upper Resistance: 1596, 1598, 1600, 1604
Lower Support: 1592, 1590, 1587, 1585

Trade safe everyone.

Best Wishes,
Tech Trader

On Leave

Morning guys,

The Tech Trader will be on 1 day medical leave.. Many apologies for that..

I'm looking at the daily range and its a small one too.. so there is not much to trade so we didn't miss much..

So.. We'll be back in action again tomorrow.. see you then!

Best Wishes,
Tech Trader

Morning Updates - 25th June 2012

Morning Traders,

Alright lets get started.

US market closed up mildly which was about the premarket level for last Friday.

Currently, the Dow is down about -50 points and the S&P is down about -6 points.

There will be some support levels down here the first one being the 1313 level on the Daily which is the 200ema on the S&P and then the 1303 level on the Weekly as we have the 50ema there.

----

In our local market, the sentiments remain bullish. Our futures have broke all time highs and our cash is just shy by about less than a point.

The trend remains on the upside for me. However, I think we might pull back a bit more before continuing moving up again.

Honestly, looking to sell is quite scary at this point. But I think a scalp here and there should be alright. I will close the shorts and turn long should the support levels hold nicely.

Watch your levels and trade accordingly.

Here are your trading levels:

FKLI

Upper Resistance: 1609, 1612, 1615, 1618
Lower Support: 1604, 1601, 1598, 1595, 1591

Cash Index

Upper Resistance: 1604, 1609, 1611, 1613
Lower Support: 1601, 1598, 1595, 1592

Trade safe and I'll come back to update the charts a bit later! ciao!

Best Wishes,
Tech Trader

Weekend Updates - 25th - 29th June 2012

Evening Traders,

How was your weekend? Mine was relaxing and getting ready for next week. I hope everyone had a great one over there.

Alright lets proceed with the upcoming outlook on the market.

S&P 500 Futures - /es

We traded to these following levels this week:

Opened: 1345.25
High: 1357
Low: 1317.50
Closed: 1325.50

Our levels for last week was:

Possible Weekly Upper Range: 1375
Possible Weekly Lower Range: 1270

Last week we mention that it was a tough call on the direction of the market and with all the uncertainty on the macro-economic level, things are more likely to move sideways and a two sided market was likely. Well, I would consider that we were right on all counts. But the down move took a bit of help by the banking downgrade by Moody tho.

We also mention that if price wants to break up, it needs to break and close above the 50s level resistance with conviction which it couldn't for two days and only made a high of 57. With this failure to break above, sellers took the opportunity to sell down with the banking downgrade on Thursday. But you can see that the down move was just a knee jerk reaction to the downgrade as there was no follow through on Friday.

So, what can we look forward to next week?

Lets look at some of the levels.

On the Daily, the 1313 level which is the 200ema should provide some level of support. On the weekly, we have the 50ema on the 1300 level. If the sellers want to take back the initiative of this market, they need to push below these level of 1313-1300 convincingly and close below it for the week.

Personally, I think we are still being caught in a sideways market here. Every sell down would be be held at support while every push up will be contained with resistance. I see us trading within these ranges of 1350 and 1250 for a while more.

But take note that volatility is at about 18.11 as of Friday's close. That basically means that there is not that much fear in the market as of this moment. With the vol so low, the upside probability outweighs the downside, unless, we see more volatility expansion in the coming weeks. So we will follow this closely as well.

Here are the probably ranges for next week:


Possible Weekly Upper Range: 1354 and 1375 should we break up more.
Possible Weekly Lower Range: 1270

Look to our daily morning updates for the latest read on the market.

----

Lets move on the the grains.

Soybean Oil

We traded to these levels last week:

Opened: 49.05
High: 51.12
Low: 48.51
Closed: 50.46

Our levels for last week was:

Possible upper weekly range is: 52
Possible lower weekly range is: 47

Alright.. price was trading within our expected range for this week. We expected for price to trade sideways and price is still trading within our expectation. Price also closed below the 50 level at 50.46 although we pulled back quite a bit from the high of 51.12. If you would look at the charts from last week, you would see that the 51.14 resistance horizontal like that I drew on the chart.

On the chart, we are basically trading sideways with attempts to push up but which failed. Seems like the resistance overhead is still quite heavy, don't you think so? With Soybean gaping down last Friday, I am concerned that Soybean Oil's price will be dragged along with it.

When price are trading in a sideways range, it is much harder to predict its movements because the very nature of a sideways range is choppiness. For me, with the week closing with a green bar, I would like to think that price would resume its right to test above resistance.

The resistance to test would be the 51.14, then the 52 levels. If price can break those levels, the third resistance would be at the 52.70 level. On the downside, I think the 48 level should hold if a break down occurs. In any case, I don't think price would break below the 47 level which is the 200ema which I think should hold nicely.

We will follow the price action of this commodity daily for a more accurate and updated readings.

Here are the levels for next wee

Possible upper weekly range is: 52 and 52.70 should we break further.
Possible lower weekly range is: 48.30 and 47 should we break further.

----

Soybean Futures

We traded to these following levels last week:

Opened: 1383
High: 1456.50
Low: 1364.50
Closed: 1372.50

Our levels for last week was:

The possible upper weekly range is: 1450
The possible lower weekly range is: 1300

Alright.. price of this commodity also traded within our expectation. We said that the 1450 would be very strong resistance level. Lo and behold, price tested a high of 1456.50 and could not go any further.

Then on Friday, price gaped down big time. We are now trading in the mid level of 1450 and 1300. I still expect price to be choppy within these ranges. So we will let price run its course until a further break out occurs. There really isn't much to read into a sideways market. No interesting story. Just a dull up and down within a range and in this case, the range is 1450 and 1300.

Here are the levels for next week:

The possible upper weekly range is: 1450
The possible lower weekly range is: 1300

----

Wheat Futures

We traded to these following levels last week:

Opened: 613.50
High: 700
Low: 612
Closed: 687

Our levels for last week was:

The possible upper weekly range is: 685
The possible lower weekly range is: 585

Wow.. another big green bar in Wheat. But price closed right at the upper triangle trend line although it did briefly trade outside it for a while. In fact, it was a big gap up on Friday due to the Wheat data. I'm just wondering how much further can price continue to push upwards. The last time we closed with a big green bar, we tested the first level of resistance before turning back downwards into the choppy range again.

The levels to break would be the 690 where the upper trend line is. If we can maintain and close next week above this level, then we might have a chance of an upside breakout. If we have a continuation, we might go up to test the 725 level again.

We will see how this commodity performs next week.  

Here are the levels for next week:

The possible upper weekly range is: 725
The possible lower weekly range is: 650


----

Corn Futures

We traded to these following levels last week:

Opened: 584.75
High: 617
Low: 576.25
Closed: 590.25

Our levels for last week was:

Possible upper weekly range: 640
Possible lower weekly range: 542

The price of this commodity is trading within our range too. Price remains in a sideways market as expected and I think this will continue for a while more.

There isn't much to be read from the charts for now. Prices are just trading within a range and look to continuing to doing that for a while more.

So not much can be derived from it other than following its intra-day price action.

Here are the levels for next week:

Possible upper weekly range: 630
Possible lower weekly range: 542

---

See you all in the morning updates! Ciao and good night!

Best Wishes,
Tech Trader

Midday Update

Afternoon traders,

Wow.. what a morning..

I short right at the open at 99 and the thing drop to 96 and never went down lower. In fact, it shot right back up!

I manage to cut loss at 61 and 62 level and turned long there right up till 1606.50. I wish I had held the trade, but I'm just happy that I recovered the losses with a nice margin of profit for the day.

So I'm flat for now and am waiting to see what happens in the afternoon. This market is really crazy. I wouldn't be surprised if it goes up higher still.

So trade safe everyone.

Best Wishes,
Tech Trader

22th June 2012 - Morning Updates

Morning Traders,

Wow.. Us market tanked last night after the banking downgrade.

I have no position at this moment but I am looking to sell right off at the open.

However, bear in mind that there will be support levels below here in the S&P as well.

In the FKLI, there will also be support levels below and a trend line at 85 which will act as strong resistance.   The 20ema is at 78 and the 50ema is at 71 which will both act as support so an end of the world drop is still not in the cards yet so you need to be careful.

I have no over night shorts but its ok. I hope the trend continues and I can ride along with it for today.

Here are your levels for today:

FKLI

Upper Resistance: 1601, 1604,
Lower Support: 1598, 1595, 1591, 1587, 1585, 1580

Cash Index

Upper Resistance: 1601, 1605
Lower Support: 1596, 1590, 1587, 1585, 1580

Trade safe and all the best!

Best Wishes,
Tech Trader

Morning Updates - 21th June 2012

Morning Traders,

Ok apologies for this morning. Was in a big rush here in the office.

Alright. I'll keep this brief.

There was no new QE3 from Bernanke, but he extended the Operation Twist. But he also gave assurance that the Feds are ready to take action should the labour market be weak.

That is essentially saying that he will be supporting the economy and thus the market should it falls doesn't it? But I think you still need to be careful because this is too obvious. Let price action guide you.

In the S&P, we closed as a doji last night and could not break the high of 1356 yet. A doji also means that there is balance between buyers and sellers for yesterday.

Regional is quite mixed this morning. Nikkei is up, Hang Seng is down slightly, Singapore and Shanghai is down too.

For our local market, I haven't established any position yet.

If price come down to a level and support is holding, I am looking to buy and see if we are going to test new high and also if the regional is confirming to my views. Otherwise, if price seems like it is going to sink to kingdom come and go back to test the 20ema near the 80s level, then I might try a break out trade by using a stop order.

Here are your levels for today.

FKLI

Upper Resistance: 1609, 1611, 1615, 1618
Lower Support: 1604, 1601, 1598

Cash Index

Upper Resistance: 1609, 1611, 1613, 1615
Lower Support: 1601, 1598, 1596

Trade safe safe all.

Best Wishes,
Tech Trader

Morning updated - 20th June 2013

Morning traders,

I'll keep this brief.

The US market closed up.

We have FOMC for the next two days. All will be looking to see if we have new stimulus for the economy.

In the FKLI, we are trading at near all time high. There is a chance we might break there today so be on the look out.

If they open this just a bit higher, the market may rally if the regional does do too especially the Dow. Dow is now down about 30 as of now so be careful.

I have no position on and will see how the levels are holding later.

Trade safe.. 

Here are the levels today:

FKLI:

Upper Resistance: 1602, 1604, 1607, 1610
Lower Support:  1598, 1595, 1593, 1591, 1589, 1587

Cash Index

Upper Resistance: 1598, 1600, 1602, 1604, 1609
Lower Support: 1595, 1592, 1590, 1587

19th June 2012 - Morning Updates

Morning Traders,

I will keep this brief.

US market closed mixed last night. It was down by quite a bit but recovered most of the losses but did not regain the high made in the premarket.

There is still the G20 meeting today and the FOMC coming up too.

I think it is possible we will remain in a two sided market again today so you need to be cautious. but remain watchful for possible signs of a break out.

In our FKLI, the market has yet to break the 68s level so the trend remains on the upside for now. There sill be support from the 75 right up to 70s level so you need to be careful if you are shorting.

I will stick to day trading for now and then decide whether I will hold any positions overnight at the end of the day.

Look for support and resistance levels to hold before taking your positions. If you are trading the breakout, make sure that there is enough strength in the market to bring price to your target.

Here are your levels for today:

FKLI

Upper Resistance: 1583, 1585, 1588, 1590, 1592
Lower Support: 1580, 1577, 1575, 1572, 1570

Cash Index

Upper Resistance: 1584, 1586, 1588
Lower Support: 1582, 1580, 1578, 1576

Apologies..

Good evening traders,

Many apologies as I had internet problem today and couldn't complete the morning update. I used my phone to take a photo of the levels and just posted it there so I hope that helped.

Price is now trading at support and lets see how the US market closed tonight. If not down significantly, and if the support holds tomorrow, I am thinking long would be a good day trade.

The morning updates will resume normally tomorrow onwards.

Once again, many apologies for the internet issues today..

Ciao and take care!

Best Wishes,
Tech Trader

18th morning update

Guys, I have Internet problem.. I'll come back to update again later..

Best wishes,
Tech Trader

18th - 22nd June 2012 - Weekend Updates - S&P 500, Soybean Oil, Soybean, Wheat and Corn Futures

Good evening traders,

How is your weekend so far? I hope everyone had a good one and wishing a Happy Fathers Day to all the daddies out there. Gosh I miss my family.

Alright lets move on to business.

In last weekend's update, we said that we are now entering into a sideways market and we were right. It was quite tough to grind out profits in the local market but we had a positive week nonetheless. I'm just glad the triple-witching is over and we can now resume back to normal trading until the next cycle 3 months from now.


This week looks like it is going to be another tough ride so be forewarned. We have the Greece crisis, G20 meeting, FOMC, and a host of other important data on the US economy. Alright lets hit the charts.


S&P 500 Futures - /es

We traded to these following levels last week:

Opened: 1337
High: 1342
Low: 1297
Closed: 1338.25

Our levels for last week was:

Possible Weekly Upper Range: 1355 and a small outside chance to touch 1374 if we have good news.
Possible Weekly Lower Range: 1240 and a small outside chance to test 1220 should we break down further.

If you haven't read our last week's update, you can click here.

Last week, we said that we are entering into a sideways market and we were right. The weekly bar closed as a sort of a dragonfly doji looking bar. This basically signifies a balance between buyers and sellers as the opening and closing price are very close to each other. We also said that the 1336-1350 area are very strong resistance area and we never went beyond the 50 level and closed at 1338.50.

On the daily chart, you can actually see an inverted head and shoulders forming and last Friday's up push actually is going to test the neck line of the pattern. We will see if price can break the neck line and whether a rally follows or will there be further sideways price action.

On the daily chart, we have just closed above the 50ema. Should we continue to trade above the 50ema, then perhaps price might have a good chance to go back up to higher levels of resistance. Of course, all of these also depends on what is happening on the macro-economic level too including what unfolds our of the euro zone crisis.

On the weekly chart, the closing price for this contract is just above the 22ema. For price to go up, we need to be trading above this ema and break through the 1350s level with conviction. Therefore, we will be following price closely to see if we can do that, and if not, then we will trade the failure accordingly.

Its a tough call on what the direction of the market is. A high probability is that we remain in a sideways market for a while more. It is tempting to say that things are looking good and the charts are pointing upwards after last week's rally back from the low. But with so much uncertainty in the market now internationally, I think the market will be trading cautious and I don't think that people will be going hands down and fully invested in such market so I think a two sided market is likely.

Look to our morning updates for the latest tidbits.

Here are the probable range for next week:

Possible Weekly Upper Range: 1375
Possible Weekly Lower Range: 1270

----

Lets move on to the CME grains that we are tracking.

----

Soybean Oil Futures

We traded to these following levels last week:

Opened: 49.55
High: 50.38
Low: 47.76
Closed: 48.60

Our levels for last week was:

Possible upper weekly range is: 52
Possible lower weekly range is: 47

So traders, what do you think about this commodity?

Last week's green bar gave some hope to the buyers but we were not able to push up through the resistance. Last week, we mention that if price wants to go up, it needs to push beyond the 50s level preferably above the 52 level and close above around the 50s levels for a positive confirmation that the buyers are in this fight. We did go up to test the 50.38 level but could not overcome it and close at 48.60, which is below our 50 level criteria.

So, the question is, what is up for next week?

If you look on the weekly chart, we are basically just chopping sideways between the range of 50s and 47s. That is basically a consolidation pattern. Which is a good thing because price has at least halted its sharp decline since April. With last week's inability to push up, I think we are headed to further sideways price action until a break out occurs.

Any break down from here should be met with support from the 200ema level of 47 and the lower major trend line at 45. Any break up should be met with a host of resistance as well.

We will follow this commodity closely and look at where price eventually breaks out and that would give us a hint on where our FCPO is headed too.

Here are the weekly ranges for next week:

Possible upper weekly range is: 52
Possible lower weekly range is: 47

-----

Soybean Futures

We traded to these following levels this week:

Opened: 1426
High: 1449.25
Low: 1372.75
Closed: 1379.75

Our levels for last week was:

The possible upper weekly range is: 1480
The possible lower weekly range is: 1330

Last week we mention that we wanted to see if price would test the 1450 level and is yes, whether it could break above it to test the next resistance area.

Price did go up to test the 1450 area and made a high of 1449.25, but could go no further.

We then traded down and close near the lows of the week at 1379.25.

I want to highlight that 1450 and 1300 is the choppy zone for this commodity for almost two third of the beginning of last year. I am looking to see if price would go back to being choppy in this 1450-1300 level just like before since we are now already trading in this range.

As for next week, the 1450 remains the resistance to break should we push upwards. With no continuation of last week's strong performance, I'm afraid we are looking for this contract to be trading sideways in this range too.

We will follow price closely and let the market runs its course.

Here are the weekly range for next week:

The possible upper weekly range is: 1450
The possible lower weekly range is: 1300

----

Wheat Futures

Price traded to these following levels last week:

Opened: 629.25
High: 642.25
Low: 607.50
Closed: 612.50

Our levels for last week was:

The possible upper weekly range is: 680
The possible lower weekly range is: 591

Price for this commodity continues to be consolidating so there is not much that can be derived from it at this moment until a decisive break out occurs. Price for this contract is also trading sideways and is within our expected range.

Any break down would be met with support and any break up will be met with resistance as well. There really isn't much that we can get out of this chart at this moment other than following its intra-day price action.

Here are the weekly range for next week:


The possible upper weekly range is: 685
The possible lower weekly range is: 585

----

Corn Futures

This commodity traded to these following levels this week:

Opened: 598.50
High: 608.50
Low: 575.50
Closed: 583.25

Our levels for last week was:

Possible upper weekly range: 640 and an outside chance to touch 660 if we rally further.
Possible lower weekly range: 542


The price of this commodity also traded within our range for this week.

Essentially, we are now trading sideways and back into the choppy range too. Not much trend could be derived from the charts until we move out of this sideways chop. Any break down should be met with support at the 200ema level at about 542 area.

So we can just use the intra-day price action for this commodity for our FCPO trading purposes.

Here are the levels for next week.

Possible upper weekly range: 640
Possible lower weekly range: 542

----

That's all folks. See you all in the daily updates.

Ciao and take care!

Best Wishes,
Tech Trader

15th June 2012 - Morning Updates

Morning Traders,

Alright.. The choppiness continues again! The US market closed up last night with the Dow notching up a 156 points gain while the S&P gained 14 points.

Amazing how the world doesn't really care about Greece isn't it?

Alright.. today would be the Triple-Witching Friday and things are going to get really freaking choppy in the US market. But after today, I hope that we would resume normal trading starting next week.

Lets just grit our teeth and try to make it through today with some gains.

-------

Lets move on to our local market.

Alright.. firstly, I shall disclose my position before we dissect the market. Yesterday I was short with the average of 72.75, but I have no idea why I got spooked out and close the contracts with a small loss at 73.50. I really wanted to short yesterday which I had updated in the morning update.

Towards the end, I am holding another short, not at a great entry, at 68, which I think is going to suffer a bit later as I think we might possibly gap up.

The question I have in my mind is that, should I cover at the open right off the bat? I have not decided yet.. so we will see later..

Alright lets move on to the charts..

We close below the 70 level yesterday but could not break the 65 level I spoke about yesterday so the trend remains up for now. It still amazes me how the market just doesn't care about Grexit! lol..

Also, we will have a host of important meetings such as the G20 next week and I believe the FOMC also.

I think market would remain in a range bound trading so just be aware.

As for today, I think the best you can do is just sit on the sidelines and don't trade especially if you are a new trader. Otherwise, maybe just day trade and scalp for profits. I have not considered if I would hold a position over the weekend yet as of now. I think the best thing to do is to go into the weekend flat. The rest is up to you.

Here are your levels for today:

FKLI

Upper Resistance: 1575, 1577, 1580, 1583, 1585
Lower Support: 1570, 1565, 1562, 1558

Cash Index

Upper Resistance: 1573, 1576, 1578, 1580, 1582
Lower Support: 1569, 1566, 1563, 1558

Trade safe everyone.. better yet, just don't trade for today.. :)


Best Wishes,
Tech Trader

14th June 2012 - Morning Updates

Morning Traders,

How are you all doing?

Alright the choppiness continues! We have expected this week to be a sideways and choppy market and it has been so far. If you haven't read our weekend updates, you can click here.

The US market closed down slightly. The question I have in my mind is that, are we going to continue to go sideways from today right into the weekend? If we can guess this question right, then we can position ourself to take advantage of the upcoming events.

I am thinking of further sideways to a possible downside. What do you think?

------

The local market has been choppy and a junk to trade this week. Market is just trading within a small range so far but cash could not break the 80s level yet.

I don't know about you. With the Greece election coming up soon, I think things favor a sideways to a downside market for this coming two days.

But we need to break the 65 level for the FKLI and the 70 level for cash as both of this support will hold this market up if we can't break it.

But if we break those levels, then I think a nice down swing could be in the cards.

As for today, I am looking to maybe just day trade or maybe even hold a short and close my eyes.

We will see how we opens later.

Here are your levels for today:

FKLI

Upper Resistance: 1575, 1577, 1580, 1583
Lower Support: 1569, 1567, 1565, 1560, 1558

Cash Index

Upper Resistance: 1580, 1582, 1584
Lower Support: 1573, 1570, 1566, 1563

Trade safe everyone.

Best Wishes,
Tech Trader

13th June 2012 - Morning Updates

Morning Traders,

How is everyone doing? Alright lets get started!

The US market closed up last night - Dow by 163 points and S&P by 15 points. Europe also all closed up. We are now back to last Friday's level . Choppy isn't it? That's what triple-witching can do to the market. Expect more choppiness up to this Friday.

I don't have much time today so I will give you the levels first and maybe come back and complete this post later.

FKLI

Upper Resistance: 1577, 80, 83, 85, 87, 89, 91
Lower Support: 1572, 69, 65

Cash Index

Upper Resistance: 1578, 80, 82, 85, 87
Lower Support: 1573, 68, 60


-Updates- 9.11am

Alright.. made my coffee, and watching this slow market now..

I think we will resume the choppy market right up till this Friday. I am still looking for a bias to trade as for now and have no position on.

I think with the Greece election and all coming up this Sunday, I think the market would not rally too enthusiastic, don't you think?

I think I will just stick to day trading and take quick profits until the market resumes normal trading next week. So trade safe and don't make any unnecessary donations to Mr Market here. Bring home the bacon!


Trade Safe!

Best Wishes,
Tech Trader

12th June 2012 - Morning Updates

Morning Traders,

Firstly, million apologies as I couldn't get this out before the market opened today..

I'm in a rush so trade safe.

Here are your trading levels:

FKLI

Upper Resistance: 1575, 1580, 1583, 1585, 1587, 1589
Lower Support: 1570, 1565, 1562, 1560, 1558

Cash Index

Upper Resistance: 1580, 1582, 1585
Lower Support: 1576, 1573, 1570, 1566

I have no position as of now. Last night US market drop, but I think that it is not so serious as we gaped up and we just gave back the gains of Friday.

This week is triple witching week so trade safe.

Best Wishes,
Tech Trader

Updated - Charts

Hello Traders,

Wow.. what a gap up and a push up! I manage to sell with an average price near the highs and have taken my profits at 81 now. Time to sit back and wait for the next set up.

Here are the charts for today.

FKLI

Cash Index

Trade safe!

Best Wishes,

Tech Trader

Morning Updates - 11th June 2012

Morning Traders,

Alright.. just a brief one and I will come back to update the charts a bit later.

The US market closed up last Friday and futures are also now opened much higher. Dow futures are now opened 131 points and the S&P is now trading up 14.25 points as of now.

I think this is mostly due to Spain's requesting the aid for its banking crisis issue. However, price is now trading exactly at 1336 in the S&P which is a resistance point so be aware. Price may still go up further later tonight, or it may come back down so you need to follow price action and not just jump into a trade.

-------

Alright.. lets try to look at the market objectively.

If you were long over the weekend, you would be a very happy camper now. If you were short, I think the last thing you want to see on a Monday morning is a big gap up.

If you haven't read our weekly updates, you can click here. 1

From the charts, it looks like sideways market so I think there will be two sided trading this week. I think it will be harder to hold positions overnight so you need to be careful.

As of now, I will be looking to scalp and day trade only. I will update again later if I have held any position overnight.

Here are your trading levels:

FKLI

Upper Resistance: 1575, 1580, 1583, 1585, 1588, 1591
Lower Support: 1569, 1565, 1562, 1558

Cash Indes

Upper Resistance: 1573, 1576, 1580, 1582, 1584, 1587, 1590
Lower Support: 1568, 1566, 1560, 1558

Trade safe everyone!

Best Wishes,
Tech Trader

Weekend Updates - 11th - 15th June 2012

Good evening traders,

How are you all doing? I hope all is good and well on your side too! :)

Alright lets do a brief summary and we will then proceed with the upcoming week.

For FKLI, this week we made really some big gains. We held short over the last weekend and Monday we opened and gaped down significantly after we reacted to the US marker closing heavy down. On Tuesday, the market opened higher which caused me to take my profit for the shorts. On Wednesday, I watch the price action and it seemed that price was going to go higher ala Malaysia-boleh style. So I went long and was right. I took profit near the high at the end of the day, then re-enter to establish some overnight longs. On Thursday, we opened significantly higher and I closed my longs profits at 81. We made more than 35 points per contract just for this week alone. On Friday, I tried to short at 66.50 but price could not break 65 level so I closed it at 66 and just sat on hand for the rest of the day. A well deserved rest for a good week. :)

Lets look at the S&P now.

After closing almost heavy down the previous Friday, Monday traded to a spinning top doji sort of pattern which basically pause the decline on the market, which was a good thing in a way. Tuesday we had an up day and closed about 5 points above Monday's high. This was sort of a confirmation that the buyers was still pretty much in the game at this point. Wednesday's rally was a real shocker for everyone. I'm not complaining as I was long in our local market, but still, the amount we rallied gave me a surprised. Thursday traded to another doji as price was not able to close above the 22ema. Friday was a two sided market as futures was down pretty much throughout the whole day in pre-market trading but closed at the high of the day in the end.

----------

Lets move on to see what's in store for us this week.
S&P 500 futures - /es

We traded to these following levels this week:

Opened: 1275
High: 1329.50
Low: 1262
Closed: 1323

Our levels for last week was:

Possible Weekly Upper Range: 1318
Possible Weekly Lower Range: 1220 and an outside chance to touch 1200.

Alright.. after closing down real heavy last week, this was the largest gaining week in 2012! So almost officially, we have just entered into a sideways market. Last week, I was hoping that price would continue to go down, but also warned that we are fast approaching the consolidation area of last year which would quite a strong support level so price wont be falling through the floor unless there are strong news and reason. You can click here if you haven't read our updates for last week.

So on the weekly chart, you are just going to see the overlapping bars - up one week, down the next and on and on for a month now. We are going to have many events this month including the Greece election so we will be on the look out for that.

On the Monthly chart, you will see that the 22ema is still holding pretty nicely and price is still trading firmly above it.

Now the hardest market to trade in my opinion is a sideways market. The difficulty mostly lies in trying to identify the trading range for the week. Once that is done, and if right, then the jobs becomes easy. In a trading range, you would avoid buying the top and selling the bottom and look to fade these extremes if the support and resistance are holding.

I would be careful going into next week and consider to soh (sit-on-hand) or reduce position size until the trend has been determined and maybe just stick to day trading. It is tough to hold over night in a sideways market so we will see what unfolds and trade accordingly.

Should we push up more, I think the 50ema at around the 1336 to 1350 area should be area of resistance. And if we break down further, there will still be a lot of support levels below with the 1224-1220 being the major ones. I see no clear trend for now and would look to assume we are entering a consolidation phase until a clear signal is given.

So trade safe and look for our daily updates for more info.

Here are the probable range for next week:

Possible Weekly Upper Range: 1355 and a small outside chance to touch 1374 if we have good news.
Possible Weekly Lower Range: 1240 and a small outside chance to test 1220 should we break down further.

p/s: It feels kind of hard to pin-points the range for a sideways market so I'm giving a larger range for us to work with. Please look at our morning updates for the updated outlook on the market.

-------------

Soybean Oil Futures

We traded to these following levels this week:

Opened: 48.91
High: 50.39
Low: 47.81
Closed: 49.42

Our levels for last week was:

Possible upper weekly range is: 51
Possible lower weekly range is: 47 and an outside chance to touch 45 should we break further.

Price for this contract traded between our projected range for this week. Last week we mention that we already had 8 weeks worth of red bars and according to Fibs theory, the next bar has a high probability of being a green one and halt the decline although the trend was clearly down. Well, surprise surprise! We did in fact have a green bar! haha.. The credit goes to Mr Fibonacci's theory and Mr Conrad for teaching it to us in that candle stick class.

Alright lets get back to the serious stuff. Last week we mention that the 48.30 levels is very crucial and the buyers will need to defend this level if they want price to stop decline. On Monday and Tuesday, we traded at that level for a long time and was able to push away from it decisively on Wednesday to test the upper resistance. We continued to push up to test the 50.34 resistance on the chart but could not over come it and subsequently pulled back on Friday to close at 49.42.

Now, what I want to indicate here is that, although we pushed up significantly and broke the down trend line, but pulled back to close below the trend line, that very act of pushing above was a very good statement by the buyers that they are still in the game at this point.

I think there is the possibility that buyers are going to start coming back from here on to give the sellers a good fight. With Soybean rallying hard last week, that is going to give this commodity an upside pull as well. It still remains to be seen how committed the buyers are and if the sellers are still in control of this market here. We will follow this commodity closely as the price changes will effect our FCPO also.

I would like to see if price can go back up to test the 52 area and close somewhere above the 50s preferably. If yes, that would be a positive development for the longs and hopefully, for our FCPO longs too. Should we break down further, the 200ema will give some measure of support. 

Here are the levels for next week:

Possible upper weekly range is: 52
Possible lower weekly range is: 47

--------

Soybean Futures

We traded to these following levels last week:

Opened: 1350
High: 1439
Low: 1331.50
Closed: 1425

Our levels last week was:

The possible upper weekly range is: 1415
The possible lower weekly range is: 1300 and an outside chance to touch 1275 should we break further.

Alright.. Wow.. This commodity really performed really well beyond our expectation. The high of the week went way above the 1415 we were looking at.

Last week, we mention that there will be support levels below so all was not lost. We also talk about the possibility of price bouncing and trading between the 1450-1300 range in the coming days. So here we are. We are very close to the 1450 area already.

But I want to highlight that price close at 1425, which is just right outside of the upper triangle pattern which is about the 1415 level which is also a resistance area. Price needs to remain above this level if it is to retest the recent highs. A failure to remain above this level could see things deteriorate once again.

I'm looking to see if price can test the 1450 level and if yes, if it can retest the 1480 level. I'm hoping for a strong performance in this commodity so that it can also pull up the prices of the other grains product.

I'm going to give a larger range for this week as things are at a transition phase so it is not as easy to determine the trading range.

Please look at our daily morning updates for more accurate daily outlook if there are significant movements.

Here are the trading levels for next week:

The possible upper weekly range is: 1480
The possible lower weekly range is: 1330

------

Wheat Futures

We traded to these following levels this week:

Opened: 620.25
High: 644.75
Low: 611.75
Closed: 629

Our trading levels for last week was:

The possible upper weekly range is: 690
The possible lower weekly range is: 591 and an outside chance to touch 576

Price for wheat traded within our weekly range, which basically means that price did nothing and is still trading within the choppy zone. And it seems likely to continue doing that for a while more until there is a decisive break out from this choppy zone. You can just tell by looking at all the overlapping bars in the chart above.

So not much indication can be derived for this commodity other than using it for intra-day indication.

I see prices to remain in this chop zone for a while more. If we break down further, I think the support levels will hold and if we break up, the resistance above will likely hold too.

So, nothing much here.

Here are the levels for next week:

The possible upper weekly range is: 680
The possible lower weekly range is: 591

--------

Corn Futures

We traded to these levels last week:

Opened: 560.25
High: 605.50
Low: 557.75
Closed: 597.75

Our levels for last week was:

Possible upper weekly range: 635
Possible lower weekly range: 529-519 area and 507 should we break down further.

Alright.. price of corn halted its decline after breaking down from the recent lows. We bounced back into the choppy range above once again. Take note that we are still trading below the triangle pattern.

I'm hoping that Soybean would perform strongly so that it can pull this contract and also Soybean Oil up too which will also caused FCPO to bounce back up.

This week's up move in Corn was a welcomed one because a further decline would just make things worst for all grains product generally.

So we will follow this contract closely and see how it unfolds next week.

Here are the levels for next week:

Possible upper weekly range: 640 and an outside chance to touch 660 if we rally further.
Possible lower weekly range: 542

-----

Wow.. what a tough week to read the chart. There are just no clear cut trends so it feels like things are going to move sideways for a bit which will mean a two sided trading.

So trade safe and we will keep you updated should there be any big movements.

Take care and see you in the morning updates.

Best Wishes,
Tech Trader

FKLI chart mid-day

Best Wishes,
Tech Trader

Morning Updates - 8th June 2012

Morning Traders,

Alright market opening soon so I will keep this brief.

US market closed largely unchanged except for Dow which closed up 46 points.

Futures then gapped down slightly and is now trading at: Dow -28 and S&P -3.25.

There were no hints of stimulus from Bernanke last night although the unemployment claims numbers were ok but the market could not push up through the resistance.

---------

Alright lets move on to our local market here.

I don't know.. with the recent increase in volatility, the daily swings are going to be more. I have no over night positions and I am trying to find a bias for the market to trade today.

I am more biased to the downside to be honest. I think the last rally was a bit over done. I may be wrong so you need to make your own judgement. It is also a Friday so you need to be careful of possibility of price being choppy also.

Here are your trading levels:

FKLI

Upper Resistance: 1575, 1577, 1580, 1583
Lower Support: 1570, 1568, 1564, 1562, 1560, 1558, 1553

Cash Index

Upper Resistance: 1576, 1578, 1580, 1583
Lower Support: 1573, 1570, 1568, 1563, 1560

Trade safe! Keep in mind it is a Friday trade!

Best Wishes,
Tech Trader

Quick Update

Traders,

Market gaped up significantly so I have took the profits on the longs.

I will wait and see how the market unfolds and reposition after that.

So take note and trade safe.

Best Regards,
Tech Trader

Morning Updates - 7th June 2012

Morning Traders,

Alright.. Lets get this out before market open.

US market closed up heavy and its the same with Europe. The Dow was up 287 points while the S&P was up 30 points.

We are now trading at 1316-1318 in the S&P which is the 22ema so that will give some measure of resistance. The market is now expecting a market stimulus but I'm wondering what would happen if Bernanke decided on no stimulus. Haha.. Dangerous eh?

Lets move on to our local market.

*** here are the charts - sorry for being late - 11am

FKLI

Cash Index

-----

So I have long positions overnight and I am in a good position. If the gap up is not too much, perhaps we can add a bit more to scalp on the way up. I will decide if I will keep the long overnight today near the end of the day.

Naturally, I am long so I hope the market to go up. I am thinking that being a Malaysia boleh country, it is possible that we might rally more. But I want to highlight that there will be resistance overhead too.

By and far, the global markets are just going sideways or up slightly but our market is already back to the pre-drop levels so you need to be careful.

Trade safe, keep your profits and be aware of Bernanke's talk tonight if you are thinking to hold overnight any positions whether long or short.

Here are your trading levels:

FKLI

Upper Resistance: 1575, 1580, 1583, 1586, 1589, 1591
Lower Support: 1570, 1568, 1565, 1562, 1560

Cash Index

Upper Resistance: 1573, 1576, 1580, 1583, 1585, 1587
Lower Support: 1566, 1563, 1558, 1553

Trade safe and all the best.

If I have time I'll come back to update the charts later. Ciao!

Best Wishes,
Tech Trader

Brief Evening Chat

Evening Traders,

Wow what a day we had.

In the morning we expected the market to go up to test resistance and indeed we did just that.

In fact, I wanted to get long right of the bat at the open but didn't have the guts to do that.

Finally I went long at 63.5, but got spooked and closed at 64.50 for a point profit.

Then I saw there were sellers on the orders queue of more than 700 versus only 100 buyers!

I knew something fishy was going on.

Luckily, I went long again at 67.5 and closed the trade at 75 after it pushed up boleh-land style.

After price retraced back to 72-73, I went long again at 73 and am holding long positions overnight and I'm a bit scared now. haha..

Anyway, we'll see what happens tomorrow and I'll see you all in the morning updates.

Take care and have a good evening.

Best Wishes,
Tech Trader

Morning Updates - 6th June 2012

Morning Traders,

How are you all doing? Hope everyone is going great!

Yesterday we took our shorts profit and went long and did a few scalps which were profitable so its good. Lets see what we can do today.

The US market closed slightly up last night. The Dow was up 26 points while the S&P was up 7 points. We retrace about half of last Friday's drop.

Old boy Bernanke will be speaking tomorrow and not today. I think I mention it was suppose to be today so apologies for that. I think market will be slightly choppy as everyone is waiting for what the Feds will do and whether a stimulus package is in the offering.

Alright lets look at our local market.

----

Yesterday we went up as expected. The Dow is currently up 21 and the S&P is currently up 5.75 points. With not much direction from the market and with so much economic data coming out today including an ECB press conference, I think this is not the time to start a swing trade, whether it is a long or a short.

I think scalping and taking your profits is the way to go at least for today. As for the direction of the market, being a boleh-land market, I think there is a possibility we might test the resistance ahead again. So trade your levels carefully.

Look for resistance and support to hold before establishing your trades.

Here are your trading levels for today:

FKLI

Upper Resistance: 1560, 1563, 1565, 1568, 1570
Lower Support: 1553, 1550, 1545, 1548, 1542

Cash Index

Upper Resistance: 1563, 1567, 1570, 1573, 1576
Lower Support: 1553, 1550, 1544, 1541

Trade safe and take your profits!

Best Wishes,
Tech Trader

Morning Updates - 5th June 2012

Morning Traders,

Sorry for the late update today. Hope I'm still in time for the open.

I will keep this brief.

US closed pretty much unchanged. I have decided to take the profits in the FKLI shorts. We will have the Europe G7 meeting tonight and also old boy Bernanke speaking tomorrow.

I think reducing risk is the right move now so I'm locking in the profits.

Take note that there is a big gap from where we open in the FKLI yesterday. If there is a fill gap, market may go up so be aware of that.

Watch your levels closely.

Here are your levels for today:

FKLI

Upper Resistance: 1555, 1558, 1560, 1562, 1565, 1568
Lower Support: 1550, 1545, 1548, 1542

Cash Index

Upper Resistance: 1558, 1563, 1566, 1570, 1573
Lower Support: 1553, 1550, 1544, 1541

Trade safe!

Best Wishes,
Tech Trader

Morning Updates - 4th June 2012

Morning Traders,

Looks like its going to be a busy morning so I will keep it brief.

If you haven't read our weekly updates, you can click here.

The US market closed down heavy last Friday. Dow futures is now trading at -90 points and the S&P is trading at -8.5 points.

I am looking to add to my positions if possible and swing this position as long as the regional market confirms to my view.

With the strong rally last in the last 1 and a half week, many people are wondering if our local market would follow suit and fall along with the regional market.

I am of the view that we will be falling along so I will trade accordingly.

FKLI

Cash Index

Here are the levels for today:

FKLI

Upper Resistance: 1577, 1580, 1583
Lower Support: 1565, 1560, 1558, 1555, 1550, 1545, 1542, 1537

Cash Index

Upper Resistance: 1576, 1582, 1587
Lower Support: 1566, 1563, 1558, 1553, 1549, 1544

Trade safe and bring home the bacon! Ciao!

Best Wishes,
Tech Trader

Weekend Updates - S&P500, Soybean Oil, Soybean, Wheat and Corn Futures - 4th June - 8th June 2012

Good evening traders,

How is your weekend so far? Mine has been relaxing and good so I hope you are having a good one as well.

Alright lets proceed with the weekend updates shall we? :)

----

S&P 500 Futures - /es

We traded to these following levels this week:

Opened: 1322
High: 1334.25
Low: 1273.50
Closed: 1273.75

Our levels for last week was:

Possible Weekly Upper Range: 1343
Possible Weekly Lower Range: 1250 and an outer chance to reach 1220.

If you haven't read last week's update, you can click here.

So.. what a week we had. Last weekend, I said that the 1336-40s level would be very strong resistance points and if buyers want this to go up, they need to push this way above this level to convince other buyers to come back in and if they failed, sellers will come back to take back control of this market. We only touched a high of 34.25 and no higher. We also said that with the Euro zone crisis kicker, the risk vs reward remains on the downside. We were right on both counts.

Happily, I am also positioned on then short side, so all is well for tomorrow's opening. :)

However, price fell short of our low of the week, but that is ok. I hope we will fall further next week, but I just want to highlight that we are now approaching the congestion period of last year. Price are not going to be falling straight down through here if there aren't any strong news or reason. 

And should we break further, I'm looking for the 200ema in the weekly to hold at about 1224. I want to highlight here that down move sometimes can be really violent and a capitulation may overshoot our target easily should it happen. I am not suggesting that it will happen next week. I am mainly just highlighting to you how price behaves during a down move - fast and furious.

So.. what's in store for next week? That's the million dollar question again.

For me, with so much negative news on the horizon, the risk vs rewards remains on the down side and I am position as such. But I would also take note of the congestion period that we are approaching now and be aware of possible pause or bounce there. We will let price action be our guide. With price falling through the floor last Friday, I think that would have alerted the policy makers and talks of a possible stimulus and easing is on again.

But in any case, I feel that the cracks of failed policy and slowing growth of the world economy is just starting to show through. I'm hoping that this is just the begining! :)

Oh also, the 200ema area of 1224-1200 area also has a major bottom trend line there so its going to take some strength and negative news to break through that area. So just be aware of these levels.

Here are our levels for next week:

Possible Weekly Upper Range: 1318
Possible Weekly Lower Range: 1220 and an outside chance to touch 1200.

Let's move on to the CME grains.

-------

Soybean Oil Futures

We traded to these following levels this week:

Open: 50.19
High: 50.74
Low: 48.33
Closed: 48.70

Our levels for last week was:

Possible upper weekly range is: 52.50
Possible lower weekly range is: 48.30 and an outside chance to touch 47 should we break further.

Wow.. we called the low of this contract almost to the tick once again. Our projected low of the week was 48.30 and we touched a low of 48.33. Amazing what support and resistance levels can indicate to you isn't it?

So... the down trend remains intact.. we have about 8 weeks worth of red bars in the weekly chart. Last year I went to a candle stick class by Conrad of Singapore and he was talking about Fibonacci numbers. After 8 weekly red bars, according to Fibs theory, the next bar or the one after that has a high probability of being a green bar. What this means is that, you need to be aware of possible pause in this decline although the trend is still clearly down. Puzzling huh? That's what theories and indicators can do to your trading mentality.

Personally, I prefer to let price action be our guide. I would identify the possible levels of support and resistance and see how price reacts when it reached those areas.

This 48.30 area is very crucial and the bulls would need to hold and defend this area. A failure to do this would see price decline in a rapid pace which will effect other grains product including our FCPO. So two possible scenario here: 1) Longs manage to defend this area and we will go back up, which will see a bounce in our FCPO too. 2) A break down from here and things would remain ugly for a while more.


However, should we break further, I think the 200ema area of 47 should hold and if we break even further, I think the long term lower trend line at 45 should hold. If this contract breaks below hard along with Soybean, I think it would drag our FCPO down to the 2800s level too. So we will be following this contract closely.

Here are the levels for next week:

Possible upper weekly range is: 51
Possible lower weekly range is: 47 and an outside chance to touch 45 should we break further.

-------

Soybean Futures

We traded to these following levels last week:



Opened: 1383
High: 1402
Low: 1317.50

Closed: 1343


Our levels for last week was:


The possible upper weekly range is: 1450
The possible lower weekly range is: 1312-1300 area.

Alright.. we almost got the low if this contract this week too. Our projected low was at 1312-00 area and the low for this week was 1317.50 which was just 5 points off in a 85 points range week which is quite ok to be honest.

Last week, we were biased from sideways trading to slightly downside for this contract. And we also said that should we break further, the 50ema area should hold at around 1312-1300 level. Price really cracked and made new lows during Friday afternoon Malaysian time. The low was actually at the 50ema area. Price recovered a lot of its losses during cash trading at night. The low was also just above at the 200ema in the daily chart. What I want to point out here is the effectiveness of the few ema that we are using to gauge the levels of the market.

Alright.. What can we expect from this contract next week?

The trend is still clearly down, no doubt about that. But I think there will be some support levels below here. If we break down further, we will reach the low of the consolidation pattern of the first part of of last year around the area of 1300 as represented as the yellow line in the chart.

We will follow this contract closely because a break below would drag our FCPO lower and a bounce here will do the same for FCPO too.

On a side note, I am looking at the possibility of price bouncing and trading within a range of 1300 and 1450 should this support hold in the coming days.


Here are the levels for next week:

The possible upper weekly range is: 1415
The possible lower weekly range is: 1300 and an outside chance to touch 1275 should we break further.

-------

Wheat Futures

We traded to these following levels this week:

Opened: 675
High: 684
Low: 611
Closed: 618.25

Our levels for last week was:

The possible upper weekly range is: 725
The possible lower weekly range is: 623

Last week, after the strong performance in the wheat contract, we said that there was possibility that this contract might try to push up higher. But the upper triangle trend line was too much for price to overcome.

We also said that should the other grains perform weak this week, it would pull this contract down to the choppy range around the 623 level. Price not only pulled this contract down but even exceeded the 623 level and made a low of 611.

What this shows you is that, when price has been trading in a choppy range for a long time, and you have a strong break out from the choppy range, look for the possibility for price to do a head fake and pull back into the choppy range again especially if there are strong resistance ahead just like in this contract where the upper triangle pattern trend line was.

So, nothing much for this contract once again. We are back to range trading and can not derive much indication from this contract other than during intra-day price action.

I am looking for support at 591 to hold but should we break further, the 567 area should hold. A further break from the 576 area would spell trouble for the longs.

Here are the levels for next week:

The possible upper weekly range is: 690
The possible lower weekly range is: 591 and an outside chance to touch 576






------

Corn Futures

We traded to these following levels last week:

Opened: 580
High: 583.75
Low: 551
Closed: 556

Our levels for last week was:


Possible upper weekly range: 655
Possible lower weekly range: 542 and and outside chance to touch 529 should we break further.

After price testing the 575 for 3 times in 3 weeks in a row, price finally broke through. This really is bad news for the longs in the market. A further decline in Corn will pull the other grains down further which will also effect our FCPO prices.

However, the one good news is that the 200ema down below should provide some measure of support still. So there will still be some support below here. But if we break further still, I think things could get really ugly and we could be looking at the 450 area in the coming days.

So we will be following this contract closely as we have finally broke down from the range trading area. A strong decline in this contract would effect the other grains accordingly.

Here are the levels for next week:

Possible upper weekly range: 635
Possible lower weekly range: 529-519 area and 507 should we break down further.

-----

Have a good Sunday everyone. See you in the morning updates tomorrow morning! Ciao!

Best Wishes,
Tech Trader

Daily Updates - 1st June 2012

Morning Traders,

Wow.. what an expiration we had! Being relatively quite new to the local market, just looking at the final 1 1/2 hour of the cash index just fascinated me. Looking at how a big group of people can match price up or down depending on their position.

I'm not being critical or anything. This is the market that we are trading and we have to adapt to it as best as we can. Since these people are openly doing it, I believe it is legal or else, the exchanges would have taken action. But anyway, I have nothing much to say on this matter. You can make your own opinion on what to think of our local market.

------

The US market closed mildly down from the bad numbers. Doe closed down -26 while the S&P was down -3. Both the cash index and the futures for the S&P are now trading below the 200ema. If price for the cash index opens lower today, and closed lower also, then probably the next swing is still to the low side. We will see where futures trade today and how the cash market close tomorrow morning.

------
FKLI

Cash Index

Alright.. first of all, I think I will disclose my positions, then I will read the market to you objectively as I see it. I am still short June from the 80 level. I plan to swing this position if all the regional market confirms to my views. Otherwise, I will cut it and then reposition after that.

-------

Alright.. Yesterday the Cash index made a new recent high and closed at 80.67. The futures for June made a high of 86 but you won't see that in the chart above as it is a continuous running chart for the active spot month only.

Well.. I think we will need to see how the regional perform from here. I am looking at sideways market to downside, but if you are looking at the chart, things are looking pretty strong!

So make your opinions and trade your levels carefully.

Here are your trading levels:

FKLI

Upper Resistance:  1583, 1586, 1589, 1591, 1595
Lower Support: 1578, 1575, 1572, 1570

Cash Index

Upper Resistance: 1583, 1586, 1588, 1590, 1593
Lower Support: 1578, 1575, 1571, 1568, 1565

Trade safe!

Best Wishes,
Tech Trader