Daily Summary - 20 April 2012

Evening Traders!

Wow.. the weekend is here.. felt like the week just blew past in the blink of an eye..

Alright lets get rolling.

We traded to these following levels today:

FKLI:

Opened at 1589 from last close of 1593
High: 1591.50
Low: 1586
Close: 1587.50

KLCI Index:

Opened at 1596.84 from last close of 1596.62
High: 1595.84
Low: 1591.85
Close: 1591.85

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Our trading levels posted this morning were:

KLCI

Upper Resistance: 1595, 1598, 1601
Lower Support: 1590, 1587, 1585, 1582

Cash Index:

Upper Resistance: 1600, 1602
Lower Support: 1594, 1592, 1589

With all the reasons we posted this morning, we expected today to be a choppy day and indeed it was. The cash index closed at our second level of support of 92 and our FKLI support levels of 87 and 85 held nicely. We also advised that you do not be caught buying the top and selling the bottom on a choppy day today coz if you did, you paid the price.

The way to trade a choppy day is to sell the top of the range and to buy the bottom of the range. However, due to one reason or another, I was not sharp enough to take advantage of this trading strategy today as I was feeling low on confidence due to a lack of proper rest. So no filled trades for me and my traders today.

So lets review the price action. We opened at 89 and briefly went up to trade at 91. There was a lot of resistance ahead from the price action of yesterday so we did not take a long here. Price then quickly fell to 87. This 87 was the low for throughout the whole morning and is also our second level of support. We touched 87 twice and traded up to about 88.5-89 for the most part of the morning. Nothing to trade here. Just traders liquidating their position coming into the weekend.

At lunch, we open a bit higher at 91 and traded to 91.50. This proved to be the high of the day. We parked a sell at 93, but we also knew that the chances of that being hit was very low but we did not want to take too much risk on such a choppy day. It was either get a good entry or no trade for us.

So price sank from there to a low of 86 which was just above our third level of 85. If you had sold the top of the range, you would have made some good money. But we did a few right things today tho, so let me just out line them here.

1) Identified correctly the support levels and the type of day it is.
2) Applied the right strategies to type of day.

So, no trades but its ok. The market is always here so we'll see how we can make some money next week!

Wishing everyone a great weekend!

Ciao!

Best Regards,
The Tech Trader

Daily Support and Resistance Levels - 20th April 2012

Morning Traders,

Happy Friday. Alright lets get rolling!

We'll first look at how the US market performed last night.

The Dow closed down -69 points or -0.53% to close at 12,964
The S&P500 closed down -8 points or -0.59% to close at 1,377

The Nasdaq closed down -24 points or -0.79% to close at 3,008


S&P: Alright we closed down a little less than yesterday's down move. But the real fact is that unlike yesterday where we traded in a small range of about 10 points, last night we traded in a 24.5 point range! the bar on the daily chart has tails on both ends of the candle and the body is somewhere in the middle. We went up to test the weekly high of 88s and touch a high of 90 and then went back down to test the support at 65.5 which held nicely. As of this post at 8.14 am, we are now trading at 1375, up 2 points. What's in store for the S&P tonight? Well tonight its Options Expiry night! And Its a Friday, and we have IMF meeting starting today and tomorrow. Also, I would like to make a correction. There are no economic report in the Us tonight as I previously stated. With the combination of the above, I'm pretty sure we'll be having a choppy day tonight.

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What's in store for us?

Alright.. looking at the above, I suppose we are going to gap down a bit also? Or perhaps not like yesterday? In any case, we have quite good support down below. But please bear in mind that today is Friday and with the IMF meeting coming today and tomorrow, I think traders will be looking to lighten their position over the weekend due to the increased uncertainty, both long and shorts.

I expect a choppy session today but with support still holding the same. I think you should take your profits quickly today if you're scalping or the market will take it away from you as soon as you're not expecting on a choppy day. But I could be wrong tho. So trade your levels carefully.

If we really turn out to be a range trading and choppy day like yesterday, do not be caught buying the top and selling the low. And if you are trading a breakout, make sure there is enough energy in the breakout to sustain the price to reach your target.

Here are the levels for today:

KLCI

Upper Resistance: 1595, 1598, 1601
Lower Support: 1590, 1587, 1585, 1582

Cash Index:

Upper Resistance: 1600, 1602
Lower Support: 1594, 1592, 1589

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FCPO - The CME grains seems to be bouncing a bit from the support levels. We did also in fact touch our Weekly low of 3440 and bounced up from there. If you haven't read our weekly levels, you can click here.

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Alright trade safe all!

I'll update here is there are any major news on the wires! Ciao!

 Best Wishes,
Tech Trader

P/s: sorry for typo, I will come back to correct it later.. market opening soon and I've still got stuff to do. Byee!

Daily Summary - 19 April 2012

Evening Traders,

Tonight I will be out as I will be having dinner with friends so I figured I should finished this before I left the office..

So here goes!

We traded to the following levels today:

Open at 1595 from yesterdays close of 1594
High: 1597.00
Low: 1591.50
Close: 1593.00

Alright.. We actually opened up one point instead of a small gap down today. We opened at 95 and then briefly traded to 97. We were actually thinking if 97 was a good spot to go long but when we drew the trend line in the 30mins chart as per above, we found out that 97 was a resistance point. So we waited to see if price would break 97. If yes, we might consider the long, and if no, we will wait for a better entry. Price was not able to overcome the 97 level ans traded in a tight range of 95-97.

Then for those of you with enough guts, you could have traded the breakout of these ranges by placing a buy stop above and a sell stop below the ranges of 95-97. If you did, you would have had a nice scalp downwards as price broke the 95 level and headed straight down in quick succession to 91.50. I believe the speed it went down was due to stops being triggered as well which resulted in long selling.

But this was good for us because we parked an order to buy at 92, which was another trend line we drew in the 30mins chart.

Take note that our support for today was first 94, 92, 90 and 87. After price broke through 94, it immediately tested the second support at 92 which was where we parked our entry. Price in fact traded to a low of 91.50.

We stayed at that level and close for lunch right after that. After lunch opened, we traded up from these levels right into the 95.50 level. We took out profit at 95 which was good enough.

Price then traded at the range of 94-95.50 for a period of time. There were more sellers than buyers at these levels so it was quite a hill for the buyers to climb if they wanted price to trade higher. In the end, the sellers took control and push price back down and finally breaking back to test the 91.50 level before closing at 93.

Not a bad day. Tonight we will have economic report in the US and same for Friday night too with IMF meeting scheduled for Friday and Saturday.

Expect tomorrow to be much lighter volume and choppy day. We will look at how the price action of the US market tonight and post the levels again tomorrow.

Have a great evening all! Ciao!

Best Regards,
Tech Trader

Daily Levels for 19 April 2012

Morning Ladies and Gents,

Lets get started!

First we will look at the US market as usual.

The Dow closed down -83 points or -0.63% to close at 13,033
The S&P500 closed down -6 points or -0.41% to close at 1,385

The Nasdaq closed down -11 points or -0.37% to close at 3,031

On the S&P, we closed slightly down last night trading in a small range of about just above 10 point range. We closed the day as a small bar on the daily chart. We have yet to break above the weekly high of 88 last night. The lower support of 60 is still holding nicely. Should we break down, we should find support at 60 and if we break up, should find some resistance at about 94. We are currently trading at 1380.75 as of this post at 8.13am up 3 points.

Take note that there will be some major economic report int he US tonight which can move the stock market such as unemployment claims, existing home sales and Philly Fed Manufacturing Index.

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Whats in store for us.

Alright.. Looks like we are going to be still..... ta daa.. guess what.. chopping in this range again!

But we may gap down a bit as we closed quite weak yesterday and the US market also closed lower. The shorts from yesterday's overnight would be a bit happier today. But I think if we really gap down, you might want to consider to take at least a portion of your profits off since we we have some major support below.

So.. whats in store today.. If we really gap down, we should be right at or just below the immediate trend line support. Right after that, we have the 20ema at the 1590 level. Is this going to be the day we close down and reverse and dooms day? Well.. with the election coming up and stuff, I wouldn't rule out that possibility even if it is a small one, but I think it is still not today.

So I expect support to hold somewhat for today. Depending where we open, we might try to trade back into the upward wedge pattern or worst case, trade as a small bar too. If we form a small bar today, it would be a bit harder to trade so you have to watch out for that too. With the economic reports tonight, I expect a range trading day with support holding for the day.

Here are the levels for today:

FKLI

Upper Resistance: 1601, 1604
Lower Support: 1594, 1592, 1590, 1587

KLCI

Upper Resistance: 1602, 1604
Lower Support: 1596.5, 1594.5, 1592

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P/s: Heads up, The CME grains seems to be pulling back a bit now so trade carefully.

Trade safe all! I'll update again if there is any urgent news on the wires.


Best Wishes,
Tech Trader

--- I'll come back to change the typo at a later time.. market opening soon..

Daily Summary - 18 April 2012

Evening Traders,

Many apologies for the late summary post today.

Alright here is the summary for today.

With no economic numbers tonight in the US, we had a nice range to trade as expected. We open at 1604 and closed at 1594 effectively giving us a 10 points range to trade.

Here are the levels for today.

Opened 1604.00 from yesterday's close of 1598.
High: 1604.50
Low: 1594.00
Close: 1594.00

Today totally reminded me of last Friday's gap up. From there, we just traded one way, which was down. It seems the Cash market have been stuck in this level for a long time.

Do you think that, perhaps, due to the election coming soon, people are taking the opportunity to sell some of their holdings in the cash market taking advantage of the current high price which in turn is causing it unable to break up? We really have been stuck in this range for a long time.

Please refer to the cash market chart below.

See the range we have been trading for the past 2+ weeks? still here basically..

For today's trade, if you had sold at near the open, then close, and waited for the rebound to 98-99.5 just before lunch, and sold again, you would have been in good profit.

Today was such a good day to trade but I did not use the right strategy in the morning which made me missed a big chunk of the good trades. I was caught long in the morning by sellers as I did not stick to my plan to enter after price tested 98 and entered at 1600.50 instead. I deserve a knock on the head to be honest. But in the afternoon, I reversed and shorted at 97.50 for a small scalp profit.

So tomorrow night we have economic numbers in the US.. expect a smaller and slightly range trading day.. we will see how the US market close tomorrow and I'll post the levels in the morning..

So night all! See you all tomorrow morning! Ciao!

Best Wishes,
Tech Trader

Daily Support and Resistance Levels - 18 April 2012

Morning Ladies and Gents,

Lets get started.

Let us first look at how the US market closed yesterday.

The Dow closed up 194 points or 1.50% to close at 13,116
The S&P500 closed up 21 points or 1.55% to close at 1,391

The Nasdaq closed up 54 points or 1.82% to close at 3,043

Wow! What a strong performance for in the US market yesterday!

The S&P's contract support at 60 held nicely and we went up to touch as high as 88.75 and we are now trading near the upper range of 85.50 up 2 points as of this typing at 8.10am.

The market responded positively to the economic numbers last night and was helped with the improved sentiments in Europe too. As price action traders, when sellers were not able to take effective control of the market as was shown as the support levels holding nicely, the bulls will always come back to try to wrestle back the control of the market.

But we have yet to trade into the lower trend line of the upward channels at about 92-93 level. So it remains to be seen if we will have enough energy to break back into the pattern.

Alright lets look at our FKLI next.

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The last two closing have been strong right into the 98 level for our FKLI this week. We will definitely gap up in the morning, but the question is by how much. I expect this 98 level to be a strong support after we have gap up so we will see how we can trade that if we reach this level.

The big gap up last Friday is still quite fresh in my mind as we gaped up 10 points and then trade the day down to fill the gap, so just be careful if we did gap up huge again today.

I am more inclined to be on the long side but depending on where we open, I will trade based on the support and resistance levels for today. Take note that there won't be any economic reports tonight so I think we should have a nice range to trade today.

If you are planning to buy, do it at where prices are holding nicely and if you are looking at selling, then it should be done where price have difficulty to break through with a small stop just above the highs in case you are wrong.

Here are the levels for today:

FKLI:

Upper Resistance: 1601, 1604, 1606, 1611
Lower Support: 1598, 1595, 1592,


Cash Index:
Upper Resistance: 1600, 1602, 1605, 1609
Lower Support: 1596, 1594, 1592

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All the best and trade safe! I will update here if there are any major news across the wires.

Ciao!

Best Wishes,
Tech Trader

Daily Summary 17th April 2012

Evening Traders!

How did you all do today?

We traded to these following levels today:

Opened at 1596.00 from yesterday's close of 1598.
High: 1598.00
Low: 1593.00
Close: 1598

Alright.. we opened at 96 this morning and immediately went back up to close the gap at 98. We tried to break it but could not and started to trade down from there.

Price did not go down in a zig zag pattern and just went down in a swift and fast pattern.

When the US market closed mixed last night, I already suspected we would trade in a small range. We expected price to be range trading which was really the case.

After price touched 98 and slowly melted downwards. Because I expected today to be range trading and a slightly upside biased day, I stalk out for the next best trade which was a long.

I drew my trend lines and was hoping price would come down to 92 and I would go for a long from there. Price actually just touched 93 two times today. And the second time which was after lunch, we rallied right into the close with some pull back to 98.

At one point I was commenting to another of my dealer if I wanted to take more risk, I can enter now at 93.5-4. But I did not, so missed a good long there. But I am okay with this because of the nature of today's volatility and small range.

I would rather take a high probability trade then to risk taking 50/50 or worst trades. So... no trades for me. Looking forward to tomorrow. There are no economic numbers in the US tomorrow night so I think we will have a great range to trade tomorrow.

Talk to all of you again tomorrow! Nights!


Best Wishes,
Tech Trader

Morning Updates - 17 April 2012

Morning Traders,

Lets get rolling!

First as usual, we will look at how the US market closed.

The Dow closed up 72 points or 0.56% to close at 12,921
The S&P500 closed down -1 points or -0.05% to close at 1,370

The Nasdaq closed down -23 points or -0.76% to close at 2,988
Alright, the S&P last night did not break down from the latest mini trend line at about 1360 and basically closed unchanged or down 1 point and the Nasdaq closed down 23 points. The Dow however closed up 72 points.

So we actually have a divergence here in the major indices. Some stocks are showing upside strength, some neutral and the tech stocks are slightly downside biased for yesterday. But we will be basing our strategy on the S&P contracts.

So basically on the weekly chart, Monday's price action represent just a small bar at the moment which is to say, price have not yet moved out far from where it closed last week. Where this breaks out remains to be seen this week. So lets move on to the next section.

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FKLI

Here is the daily chart for the FKLI.

We have been trading at this upper range of our FKLI of between 1580 and 1600s for almost a month plus now. Even when the US market has had a pull back, we are basically still here, breaking the trend line by a bit, but still holding up pretty much.

Today looks like we are still going to be trading within the upper range again. Basically, we are not going anywhere and are just chopping around in this 1580-1600s range.

So, look for today to be pretty much the same as it has been for the past month or so. Pick your spots carefully. Sell from where resistance is holding nicely and buy at where support is holding as well. I still believe support.

We have building permit report tonight so I expect a slightly range trading to a slightly upside biased for today.

Here are the levels for today's price action:

FKLI:

Upper resistance: 1601, 1604, 1606
Lower support: 1597, 1590, 1585


KLCI Index:

Upper resistance: 1600, 1602, 1605
Lower resistance: 1594, 1592

Trade safe and I'll update here if there are any significant news that comes along. By the way for FCPO traders, price action of the CME grains seems to be coming down after failure to overcome the upper resistance. Trade safe.


Best Wishes,
Tech Trader
 

Daily Summary - 16 April 2012

Good evening traders,

Wow.. what a volatile day for scalpers..

We traded to the following levels:

Opened 1588.50 from 1594.50 the previous trading day
High 1598.00
Low 1588.50
Close 1598.00

Alright.. we opened the day at 88.50 and never went a tick below it. We did go back to test the low once tho. I have a fellow trader Teo who took a long at 90.50 and his initial target was 93.50. Due to the swift spike down to retest the 88.50, he decided to take his profit at 92.50 which was quite good as well.

Price continues to go up but in a zig zag type of way. We actually formed a bullish wedge going up. After price filled the gap at 94.50 and touching a high of 95, it quickly pulled back to the 92.50-93 range. I was worried that I would miss the short so I quickly park a sell at 93.50. If I had waited for a few minutes longer, I would have gotten a better fill at maybe 94.50 instead as price did went up to trade as high as 95 for a while. 


After lunch, price did react as expected and went down to test the 91-91.50 range. At this point I already had 2 points profit from the 93.5 short. Take note that if had I shorted at 94.5, then the position would have had 3 points of profit and I would have most likely taken it. But as the other regional market was performing strongly, I was wary of sharp spike up which really did materialize. When price started to bounce hard, I took the position off at 93.0 for a tick scalp. Price eventually rallied to 98 from then on.

After price touched 98, it pulled back into the 94.50-95 range and held there. After that, we rallied right into the close and right into the high of 98.

Freaking volatile day.. Tonight we have numbers and same goes for tomorrow.

We will see how the US market react to the numbers tonight and plan for tomorrow accordingly.

So wishing everyone a great evening and see you in the morning updates tomorrow with the appropriate support and resistance levels! :)


Best Wishes,
Tech Trader

Morning Updates - 16 April 2012

Morning All,

I might be in a rush this morning so I will post the daily levels first and come back and finish the weekly range a bit late.

Alright lets get going.

Tonight we will have a host of economic numbers in the US. We closed down a lot to end last week in the red as per our weekly update post yesterday.

FKLI:

What to expect for today:

Well we already know we will gap down today. We also know that the lower trend line are getting less steeper which signifies the weakening of the uptrend in the longer term. I think the pull back in the US market is not done yet as we closed the week down, but at the same time, I don't expect this to me a major reversal, just a regular pull back. I think we will go down to test some of the support areas again this week and I do expect them to hold. Otherwise, we will be looking at an even larger pullback in the days to come.

Just like last Friday when we gaped up 10 points in the FKLI during open, we have to watch how big is this gap down. If it is overdone again, we might try to fill the gap back up. Be watchful for that. In any case, whether you are buying or planning to sell, you need to make sure that the respective support and resistance areas are holding nicely before entering the trade. If you are trading a breakout, make sure you have identified your ranges carefully and there are sufficient strength in the market to support a move all the way to the next level of support and resistance.

The levels for FKLI today are:

Upper resistance: 1597, 1601, 1604
Lower support: 1590, 1588, 1585, 1581, 1578

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The levels for the Cash Index for today are:

Upper resistance: 1609, 1616
Lower support: 1595, 1592, 1587, 1583

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Alright guys, sorry about this morning.. I had a lot to do this morning and couldn't get this done before the market opened. So here goes..

 Weekly Range for KLCI Index

Alright.. These are my weekly ranges for the Cash Index

Possible Upper Weekly Range: 1602, 1609, 1616
Possible Lower Weekly Range: 1595, 1587, 1583, 1577

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FCPO

Alright traders.. FCPO has filled the gap as we have mention in our earlier post. Whether we will break above depends a lot on the performance of the other grains product such as the Soybean Oil, Soybean, Wheat and Corn futures. As of this moment, the other grains product are having difficulty to push above and close above their respective support and resistance levels.

We will be watching the price action of the other grain products closely and how it effects our FCPO contract. You can read about our weekly update on the other grains product by clicking here.

These are my weekly levels for FCPO:

Possible Upper Weekly Range: 3622
Possible Lower Weekly Range: 3440

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Alright.. talk to all of you during our daily morning updates! Ciao!


Best Wishes,
Tech Trader