Trader's Comment: “bull” refused to give up with ended a triple digit gains.

“Shortish” were squeezed amid stronger palm oil futures after the “bull” refused to give up and continued to rally higher until it settled at triple digit gains. Benchmark Mar09 opened RM43 higher at 1880 tracking overnight NYMEX crude oil settled above $48 coupled with higher CBOT soy complex. It then fell to intra day low of 1840, fully recovered yesterday’s left over gap. But from that on, the “bull” resumed its journey again to climb all the way up without looking back. Aggressive short covering coupled with speculative buying pushed Benchmark mar09 to hit intra day high at 1981 in late trading before it finally settled RM143 higher at 1980.

RTRS-UPDATE 1-Obama seeks major tax cuts in stimulus plan

WASHINGTON, Jan 4 (Reuters) - U.S. President-elect Barack Obama, seeking to drum up support from both political parties, plans to propose up to $310 billion in tax cuts for businesses and the middle class as part of his massive economic stimulus package, senior Democratic aides said on Sunday.
Obama intends to discuss his proposal during private meetings on Monday with Democratic and Republican leaders of the Senate and House of Representatives, the aides said.

Trader's Highlight

DJI-NEW YORK, Jan 5 (Reuters) - U.S. Treasury prices plummeted on Monday, driven by fears a price bubble is about to pop in the face of a massive wave of new debt, while fresh details of a planned U.S. stimulus package helped firm up the dollar.

U.S. stocks fell after an early rally on better-than-expected December sales at battered General Motors failed to hold as investors booked profits from last week's run-up.

U.S. President-elect Barack Obama plans $310 billion in tax cuts as part of a rescue package of up to $775 billion, senior Democratic aides said on Sunday.

The Dow Jones industrial average <.DJI> closed down 81.80 points, or 0.91 percent, at 8,952.89. The Standard & Poor's 500 Index <.SPX> fell 4.34 points, or 0.47 percent, at 927.46. The Nasdaq Composite Index <.IXIC> slipped 4.18 points, or 0.26 percent, at 1,628.03.

NYMEX-NEW YORK, Jan 5 (Reuters) - U.S. crude oil futures settled at the highest level in a month on Monday as the Israeli-Palestinian conflict escalated.

On the New York Mercantile Exchange, February crude settled up $2.47, or 5.33 percent, at $48.81 a barrel, the highest settlement since Dec. 1's $49.28. It traded from $45.56 to $49.28.

CBOT-SOYBEANS - January up 13-3/4 cents at $9.83-3/4 a bushel, March up 10 at $9.87. Reached a three-month top on higher crude oil, strong demand for soy and concerns about the condition of the crop in South American.

CBOT-SOYOIL - January up 1.32 cents at 34.90 cents a lb;March up 1.29 at 35.17. Following crude oil higher.

FCPO-JAKARTA, Jan 5 (Reuters) - Malaysian palm futures rose 5.57 percent on Monday to finish at a new high in nearly 12 weeks, supported by rising crude oil prices and strong palm oil exports, traders said.

The benchmark March palm oil contract on the Bursa Malaysia's Derivatives Exchange rose 97 ringgit, or 5.57 percent, to 1,837 ringgit ($531) per tonne, the highest closing level since Oct. 15. The contract hit a high of 1,846 ringgit earlier.

Other trader contracts rose between 33 ringgit and 123 ringgit. The overall volume stood at 15,018 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Jan 5 (Reuters) - Major Southeast Asian stocks hit two-month highs on Monday as investors bought up energy and palm oil shares such as Singapore's Wilmar, Malaysia's IOI Corp and Thailand's PTT after a jump in the crude oil price.

Hopes for a global economic recovery later this year and for more interest rate cuts by central banks in Asia in response to weak inflation encouraged funds to flow back into undervalued stocks, with the trend expected to continue.

Singapore's Straits Times Index <.FTSTI> jumped 5.2 percent to its highest since Nov. 5, the Malaysian share index <.KLSE> rose 2.9 percent to a two-month high and the Thai stock index <.SETI> climbed 6.4 percent to its highest since Nov. 5.

Trader's Comment: The “bull” was still alive and powerful enough to finish off CPO futures at above 1800.

The “bull” was still alive and powerful enough to finish off CPO futures at above 1800. Traders were initially cautious in early trading. Benchmark Mar09 hit the intra day low of 1738 after opened RM5 higher at 1745. It then surged to the morning high of 1795 but was immediately pressed down following Asian time crude oil softens slightly from the high of $48 level. Nevertheless, it was well supported and managed to stay afloat at 1780 before lunch break. The “bull” began to extend it’s muscles in the second session and CPO prices started to climb until the psychological resistance level of 1800 level was broken easily. Benchmark Mar09 continued to rise through out the session and hit the intra day high of 1846 in the late trading before it finally settled RM97 higher at 1837. Daily volume increased tremendously with 15,018 contracts changed hands.

DJI Daily: Holding ground

Market continue to hold ground with immediate resistance and support is at 9085-9159 and 8644-8718 level respectively.

KLSE Daily: 900 mark stayed firm

Market stayed firm above 900 mark with gain more than 2 percent. Market looks may continue its upside move in near term. Currently, resistance is at 926 followed by 932-946 (gap left over since 15/10/2008). Downside support is at 901-897 followed by 877.

FKLI Daily: 2009 the year of bull?

Market welcomes the year of bull with violated the immediate resistance at 910-927. A continuous long white candle printed has shifted our view to bullish in near term market. As for now, we look for the upside resistance at 931-944 (gap left over since 15/10/2008). Downside support is pegged at 903.5-901 (gap left over on 5/1/2009) followed by 879.5-875.5.

FCPO Daily: Fabulous !!

Market gains more than 5 percent to close high at above 1800 mark had turn the immediate daily technical landscape looks pretty positive. Market looks eyeing the upside gap left over since 3/10/2008 at 1902-1934. For downside, support is pegged at 1738-1723 followed by 1706-1695.