Tuesday 17 July 2012

Morning Updates - 17th July 2012

Morning Traders,

Just this morning I thought about how this month had gone past in the blink of an eye and its the middle of the month already.

I have been sleeping earlier and that extra rest felt good for me.

Alright lets proceed with the updates for today.

US market closed down moderately last night. Dow closed down -50 while S&P was almost unchanged at -3.

There is a correction. Bernanko will be speaking tonight and not tomorrow night so take note of that.

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As for our local market, I just can't do anything but admire the strength in our cash market. I felt that our futures side lost a bit of its upside momentum yesterday as you can see price had difficulty to push upside. But our cash market remains strong and pushed to new high.

If cash market remains so strong, there is nothing that futures can do other than follow it upside too.

I think we need to look at cash market again today and see if the strength and buying is still there and let that be our lead. But take note that yesterday, we traded at par for most of the day and went discount towards the end of the day. But this doesn't mean that we can't go back to premium mode again in the coming days.

These relationship between prices can change any time if the big buyers start coming back in the futures so you need to be on the look out for that.

I will stick to day trading and let cash be my lead.

Here are the levels for today:

FKLI

Upper Resistance: 1635, 38, 41, 43
Lower Support: 1630, 28, 26, 22

Cash Index

Upper Resistance: 1636, 38, 40, 42
Lower Support: 1632, 29, 25

Trade safe all.

Best Wishes,
Tech Trader

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