Thursday 21 June 2012

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

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