Review on last week’s markets

The Dow lost 200pts and the S&P 500 dropped 1.2% on Tuesday, the first big drops in 2017, amid investors & markets doubts over the Trump administration’s ability to push through the pro-growth economic agenda promised by the president.

President Trump's first legislative battle is to win votes in Congress to repeal and replace the Affordable Care Act (Obamacare) with his own version of affordable insurance. Failure to do so may cause concerns among investors over his ability to push for tax cuts, regulatory reform and infrastructure spending. The Dow dropped 59.86pts to close at 20,596. Besides that the S&P 500 Futures closed 2,342.

Asia stocks ended positive on Friday. Nikkei 225 added 0.2% while the Shanghai Composite index closed 0.1% higher. On the local front, KLCI staged a to close at 1,745.20 with a total of 5billion volume changed hands on Friday, boosted by feel good sentiments on our local stock markets.

Events to watch out this week

29 March, 10.30pm (Malaysia Time), Wednesday. Weekly Crude Oil Inventories report. Last week figures was 4.954 million barrels. Expect some price volatility for WTI Crude Oil. Take good care of your trades.

30 March, 8.30pm (Malaysia Time), USD Q4 GDP report. Q3 GDP was 1.9% while the markets are expecting a 2.0% for this quarter. Expect some price volatility for S&P 500. Take good care of your trades.

1 April 9.45am (Malaysia Time), China Cai Xin manufacturing index.

Besides that, this week may be dominated by US political news as President Trump is lobbying the US Congress to approve a few of his policies. Expect some price volatility for S&P 500.

https://www.youtube.com/watch?v=b5OO6RczxaI&t=3s

FKLI

As correctly anticipated in last week's outlook, FKLI did had a retracement towards 1,740 on Tuesday. The index then closed at 1,748 on Friday. Going forward, I believe FKLI may resume its downtrend. This is because prices failed to stay above 1,754, or in other words, rejected this 1,754 resistance. This also indicates that sellers have taken control at this 1,754 zone. The first downtrend target will be 1,736 zone. Second downtrend target is 1,726. Resistance for risk management is 1,754, highlighted in this green zone.

FCPO

FCPO again did resume its downtrend, as correctly anticipated in our 1ast week's outlook. The benchmark crude palm oil prices fell towards our 2,750 target on Friday. Going forward, I believe FCPO will resume its downtrend next week, as long as EMA 8 -13 remained deadly cross and prices below 2,800 resistance zone (which also the EMA 200). Before I continue, I will like to stressed that if prices above 2,800 (ema200), FCPO will be bullish, in contrast, if prices below 2,800, it will be bearish in the long run. Thus 2800 become our risk management. First downtrend target is 2,750 while second downtrend target is at 2,700.

S&P 500

As correctly warned in 1ast week's outlook, the S&P 500 did had a healthy retracement the whole of last week and hit our first support zone of 2,350. Going forward, I believe S&P500 may have a downtrend towards either 2,333 or 2,317. Risk management for this will be 2,360.

WTI

Right on cue as per 1ast week's outlook, WTI resumed its downtrend again. The US benchmark crude oil closed at 28.14, almost hitting our last week's second downtrend target of $47. Going forward, I still believe crude oil prices will continue its downtrend next week, as long as EMA 8-13 still remained a golden cross and prices below $49. Thus this $49 will be our risk management. First downtrend target will be $47.5 while second downtrend target is $45.5.

DISCLAIMER

The information contained in this article is for reference. No individual financial goals & risk appetite have been taken into account. Futures trading involve high risks.

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