Monthly Archives: November, 2011
Gold and Oil Markets Report – 28 Nov 2011
Gold Gold prices were trading sideways from 1665.00 – 1700.00 after last Wednesday due to thin activities following Thanksgiving Day through long weekend. The market trend is in a dilemma to go either way in coming week while waiting for fundamental news. We reckon breaking below 1665.00 may land at 1600.00 again but violating above 1710.00 will recover the bullish sentiment to 1750.00 regions. No clue yet to be seen until Monday’s closing price for revealing the potential trend. Silver Silver prices carry bearish patterns on day-chart. The market seems to be heading down to S1 – 30.00 while breaking below here may land at S2 – 28.50 regions. Silver was trading in tight range last week with little action. We recon the market will only regain its bullish strength if the surge closes above 32.00 again! Crude Oil Crude oil prices headed for another week of losses after the [...]
Euro Plunges After Hungary is Downgraded
Currency Market Observations – 28 Nov 2011 Fundamental Outlook The US congress fails to reach an agreement to cut the budget and panicked the stock markets. Europe continues to be threatened by viral debt crisis after Hungary has been downgraded by Moody’s Investors Service. British policymakers sound out that additional stimulus may be added to revive the economy. The US existing home sales increased 1.4 percent to 4.97 million annual rates in October as falling housing prices attracted buyers. Orders for durable goods declined 0.7 percent after 1.5 percent drop in prior month. Initial jobless claims increased 2,000 in the week ended 19 November to 393,000. Last week, Obama administration fell out of negotiation with congress leaders to work out the agreement to cut budget deficits by USD1.2 trillion. Dow Jones market plunged out of fear. Fortunately, not much trading activities were seen after Wednesday as Americans went for a [...]
Gold and Oil Markets Report – 21 Nov 2011
Commodity prices fell last week due to growing concerns in Euro debt crisis will curb demands in global consumption. WTI Crude fell in New York on speculation that the reversal of the Seaway pipeline will be insufficient to eliminate a glut in the US Midwest. Gold prices slid as both US and UK voiced worrisome of contagion spread of Euro crisis in affecting their growth. Gold Gold prices had a hard fall from 1795.10 to 1710.10 last week. This week, we forecast the trend will consolidate higher to 1740.00 regions in early week before another down trend will follow through. We expect the bears to tumble to 1765.00 regions by this weekend if there is more negative news from Eurozone. Stay out temporary if the market moves above 1740.00 regions. Silver Silver prices were sold down to 30.92 entailing the bearish trend of commodities. We reckon the market will consolidate [...]
The Euro Debt Crisis Persists in Worries
Currency Market Observations – 21 Nov 2011 Fundamental Outlook The US consumer market demands remain sluggish despite industrial output showed mild recovery. Euro debt crisis continues to post threats to growth in America and Britain that hammered the commodities down last week. International Monetary Fund (IMF) announces it will not release next tranche of bailout package for Greece until more political supports are being backup by Euro leaders. The US producer prices declined 0.3 percent after a 0.8 percent gain in September, reflecting inflation shrinkage. Retail sales purchases climbed 0.5 percent in October at mild demands. The industrial production that measures output at factories, mines and utilities climbed 0.7 percent after a revised 0.1 percent drop in September, indicating steadiness commercial sectors. The American weekly claims for unemployment benefits dropped to the lowest level in 7 months when the data ended on 12 November slid 5000 to 388,000. Another separate [...]
Penny Stocks: The Comeback Kid?
The past few weeks have seen plenty of penny stocks being actively traded in Bursa Malaysia. Among the top performers is Harvest Court Industries Bhd whose stock has jumped 16 times from 8.5 sen to RM1.40 in just four short weeks. Penny stock, as defined by Investopedia, is a stock that trades at a relatively low price and market capitalization, usually outside of the major market exchanges. These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. In Malaysia, penny stocks are quoted securities that are trading below the RM1 mark. Local analysts and brokers attributed the rise of penny stocks to a sign of renewed confidence among retail investors. Recent gains on blue chip counters also contributed to the increasing interest in penny stocks. As blue chip stocks are [...]
Gold and Oil Markets Report – 14 Nov 2011
Gold Gold prices reversed strongly on Friday night and closed at 1787.90. This week, we reckon strong selling interest will emerge at 1790.00 levels from the toppish formation. Market will probably trade inside 1745.00 – 1790.00 levels unless some new euro fundamental news may drive the bulls into new height. Beware if the market breaks above 1802.00 as this may aim the next target at 1825.00! Silver Silver prices turned bullish on Friday and might start its new uptrend throttle unless it recedes to below 34.20 levels. We reckon strong support to emerge at 34.20 levels while the bulls will probably target higher prices this week. The immediate resistance is identified at 35.30 but breaking above here will aim for 35.70 as our wave target prices. Abandon your long-view if the market violates beneath 34.20. Crude Oil Commodity prices strengthen on Friday night due to better US consumer confidence. WTI [...]
The Eurozone Snatches Limelight in Debt Crisis
Currency Market Observations – 14 Nov 2011 Fundamental Outlook The US economy stabilizes and shows the world’s largest economy may prevent an imminent recession. Both Greek and Italy Prime Ministers step down and arouse concerns in debt restructure in the Eurozone. Britain continues its QE2 program by spending the GBP75 billion in another 3 months. The US consumer credit rose in September by USD7.4 billion vs. down 7 billion in August. Increment in non-revolving credit and auto-purchase helped in the spending. Another report showed wholesale inventories decreased 0.1 percent in September compared with a 0.5 percent gain in prior month. The US trade deficit unexpectedly narrowed in September on record exports and jobless claims fell to a 7-month low, showing recovery. Trade gap shrank 4 percent to USD43.1 billion from a revised $44.9 billion in August. Initial jobless claims dropped 10,000 to 390,000 for the week ended 5 Nov. Another [...]
Bad Weather Impact on Supply Chain, Retail and Commodities
Over the past few months we have seen climate change that has brought about extreme weather all over the globe. Most currently, Thailand is still besieged by the worst flood since 1942 which started three months ago; the US battles with snowstorms that came a month earlier than expected and Alaska is just hit by a hurricane-like storm. Extreme weather patterns affects, in particular, all weather-driven commodities, supply chain and retail for the simple reason that weather is the most powerful force on earth. The flood in Thailand has crippled car manufacturers like Honda and Toyota, halting operations and forcing them to move businesses elsewhere. Food supplies like rice and vegetables are also decreasing, as crops are hit by flood in Thailand and Vietnam pushing the prices up to cope with the demands from major rice importers such as Malaysia and Singapore. Commodities are also impacted by bad weather – [...]
Gold and Oil Markets Report – 7 Nov 2011
Gold Gold prices were bullish last week with other general commodities. The market closed at 1753.60 after reaching the top 1767.50. This week, we expect the trend to soften and move within 1720.00 – 1770.00 range if no further drastic news to drive the bulls higher. However, breaking above 1770.00 may test the next higher resistances at 1800.00 levels. Silver Silver prices closed at 34.02 on last weekend and showed bearish patterns. We expect the market to sink down to 32.70 levels by smaller demands. Basically, the market will make initial retracement downwards and consolidate after that. Abandon your short-view if the market violates above 34.90 regions. Crude Oil WTI Crude prices strengthened after mid last week when Euro debt crisis increased market concerns on Greek woes and rate cut in European Central Bank. Commodity prices re-gathered bullish sentiments and WTI Crude turned up to attempt double top on Friday. [...]
The Commodity Reverse Higher amid Euro Crisis
Currency Market Observations – 7 Nov 2011 Fundamental Outlook The US treasuries return to favor for investors after Greek default stirs woes for debt crisis. European Central Bank (ECB) cut rate to contain slowdown in economy while Japan intervenes in selling down yen to salvage national exports. MF Global Holdings Ltd files for bankruptcy protection and shocks investors. The US Institute for Supply Management-Chicago Inc. reported its business index decreased to 58.4 in October from prior month 60.4, due to higher overseas demands. Another data from the same institution on factory index dropped to 50.8 from 51.6 in September, but still maintaining above 50 benchmarks. Building construction increased 0.2 percent in September after jumping 1.6 percent in August. The US services industries fell to 52.9 in October from prior month 53. Housing markets stays beneath recovery levels from low consumer demands. While the US initial jobless claims declined 9,000 at [...]
