A lot of bloggers blogged about the amazing 8-day winning streak by FCPO (Futures Crude Palm Oil). I am impressed too but with all the rosy and blossoming news regarding the impact of La Nina and recent inventory level, not to mention the coming festive demands, perhaps time is about to come when FCPO may take a sharp turn once all these come to pass. Except the fact that La Nina may trigger flood worries as we near the end of 2010, I sincerely doubt a sustainable rally above RM 2550.
Did you guys notice that open interests had plunged to the level of 68K at the time of writing. It has been dropping ever since the rally began which led me to conclude that the rally is triggered by short-covering. Of course, we may not know how the future events will unfold, but current news which you guys heard, sorry to say, is exaggerated by 'big guns' .
As of now, I hold no position in FCPO. To avoid being slammed by another wave of buying, I'll stay aside first and see if the current rally is for real or not.
0 comments:
Post a Comment