Morning Traders,
Alright. The jobs report last night was good but the ISM numbers were disappointing. ECB cut rates and Bank of England increased the size of its qualitative easing with China also cutting rates further. Dow closed down -47 points, Dow down -6 points while Nasdaq closed unchanged.
How do you interpret this? Hmm.. A tough call to be honest. But looking at the market not reacting much to all these following action, I think we need to be careful and not assume good times are ahead. Don't you agree?
So far we have traded in a sideways and slightly upside as expected and I will assume that today won't be that different too. There will be Non-farm employment change tonight. Last month's numbers was the bad one coming out at +69k jobs added only. Analyst estimates for this coming one is 97k jobs added. We will see how the actual numbers come out tonight. Price could go either way depending on the actual numbers.
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Alright.. as for our local market, we have been making new highs everyday in our futures market. Yesterday we touched a high of 1620. Cash almost touched its new high too.
So what do you think? Think we are going to keep going higher? It is definitely possible.. We are at an all time high for a reason. How much of it is being artificially supported or whether it is from genuine demand, we will never know. But what concerns us is that price is strong and making new highs. I think that it is not wise to go against the trend here.
Unless price spike to unrealistic highs, then I think we can put on a short position. Otherwise, it would all be for scalping only. If price comes down and finds some levels that are being supported, then probably I might look to go long. But considering it is also a Friday, I might just sit it out unless something looks good.
Here are your levels:
FKLI
Upper Resistance: 1620, 1623, 1625, 1628
Lower Support: 1615, 12, 08, 16, 04
Cash Index
Upper Resistance: 1615, 17, 19, 21
Lower Support: 1611, 09, 07, 05
So trade safe everyone.
Best Wishes,
Tech Trader
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