8.48 a.m. - Malaysian Time
9.17 a.m. - a little bit of updating
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The CPO ( crude palm oil ) futures for November's contract open at 2325 and closed at 2240 yesterday. The highest was at 2341 and the lowest was at 2240 with a 100 points difference. Yesterday also recorded that most of the world's share markets tumbled globally. So did the CPO follow suit?
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The market open at 2325 and linggered between 2318 to 2338 for about 10 to 15 minutes and at 10.47 a.m., the market fell to 2309 ( 16 points from opening ) and immediately rebounced back to the highest of the day at 2341 before settling at 2309 just before the lunch break.After the break, the market kept falling and finally settled to the lowest of the day at 2240.
By refering to my forcast yesterday , see #1, if you had placed a buy position after the market fell about 13 points ( the market fell 16 points as stated above ) from the opening, you would have made a profit of between 20 to 40 points. If you refer to my forecast again, see #1, the market did past down the level between 2302 to 2308 ( in the later part ) and did also go down further and in fact a black bar was formed yesterday.
On the other hand, had you decided to place a buy " 5 points above the opening level", say at about 10.40 a.m. ( because the 1st 3 minutes after opening was a false alarm) at the level of 2330, you still might have made 'some' money only if your stop loss were more than 21 points.
In actuality, I do not really encourage to buy at this point, unless if you have a lot of extra cash and like excitement and challenges, because the market open at the lower part of 2323 to 2380 level and the chances for the market to go further down was quite great especially if the level between 2302 to 2308 were broken ( in fact, it was broken later during the noon hours ). Well, sometimes you have to take the risks ( culculated risks , off course ). Higher risks mean higher gains.
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Today
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My not-so-good mood still persits today and further more today is the 'transition period' from November's contract to December's contract, so I think I better not do any forecast for today.
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As usual, if not sure, just contact your broker....( Many brokers nowadays prefer not to give any advise no more because they are always wrong on many occasions ....)
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Have a great trading day!!!!
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