MAKE 2016 YOUR BEST YEAR YET!

Dear Friend & Associates,

In 2016, the Palm Oil Price Forecast and Analysis Report would be on a bi-weekly basis.

Quantitative Technical Algorithm Analysis would be employed to track the market’s trends and understanding of its working is vital.

This year, many outside factors like crude oil prices, the strength of the US dollar; soya oil, the impact of the extended El Nino and the basic fundamentals of palm oil would continue to exert their  influence and impact on Palm Oil price.

I believe a simple, historically tested and proven trading edge with well managed risk parameters is the foundation for consistent trading and hedging success.

If you are serious & desire to have a PERMENANT change on your trading this year, set yourself up for success by attending my signature program, the 1-day Palm Oil Master-Trader Tutorial (MTT) in Kuala Lumpur on 5th March 2016. (Before the KL POC 2016).

You really have to have a method that has an edge. You have to have confidence in that method. I’ve created a pretty extensive trading course that might help set you in the right direction.

You will re-set your trading and hedging blueprint, right there, that day.

That’s what you’ll learn to do at the Palm Oil Master Trader Tutorial.

Don’t just take my word for it. BE THERE and experience it for yourself.

Many palm traders in Indonesia, Malaysia and Singapore have attended the MTT sessions and experience drastic changes in the way they look at the palm oil market and prospered.

For registration, programme or further details please click on icons above. We can also be contacted at  teohgm@gmail.com (phone: 0122688121)   david@gbworks.com.my   (phone: 0122048918)

Sincerely,

G.M.Teoh

 

LET US TAKE A LOOK

What does the Quantitative Algorithm Technical tool say about the price direction of crude palm oil? The GMT Trend-tracker’s buy-signal that was given in mid-November remained intact as at last Friday’s close and continue to call for more upside trading in the immediate term.(please see chart). Price upward breakout at the 2,400-2,450 levels indicates the market has entered into a new-normal trading level that could take prices higher to  the 2,500-2,550 levels.

BMD CPO FUTURES – 3RD MONTH (WEEKLY)
GMT TREND-TRACKER – BUY & SELL SIGNALS.

01.pngIt is very obvious that by looking at the trading signals in the chart that the GMT T.T. tracks only the activities of the big players not the small players.

This method simply divorced itself from the market noise and minor  price movements and focused on the reality of the market – the major trends. This is crucial for timing a trade or hedge and that is all that matters! Timing is everything.

CME SBO FUTURES –WEEKLY
GMT TREND-TRACKER – BUY & SELL SIGNALS

02.pngEvery day in the morning, every palm oil trader worth their salt would look at the CME SBO futures before making trading decisions. All cycles of SBO was successfully nailed by the GMT Trend-Tracker in 2015 till today. (see chart).

The trading signal based on the GMT T.T. was bullish as at last Friday’s close. Technically, the prospects of prices trending higher to re-test it most-recent highs at 32-33 cents is bright.

We may know all the fundamentals of soy oil and yet be wrong in trading. What matters in markets is the trend. Hedging and trading success can on be achieved by trading the direction and duration of a price move, by definition THE TREND.

NYMEX – LIGHT SWEET CRUDE – APRIL 2016
03.pngThe price of NYMEX Light Sweet Crude Oil rebounded today after hitting a 12-year low. Is this a dead-cat bounce or the light at the end of the dim tunnel? How would this recovery effect biodiesel. Goldman Sachs projection is now partially correct and what would be the influence on palm oil if their USD 25-20 per barrel call for 2016 becomes a reality.

Over the last sixteen months, the price trend of crude oil was successfully tracked by our GMT TT. They were simply spot-on!

As at Friday’s close the trading signals remained in negative-divergence and signalled that the market is not completely of its bearish phase.

FOREX MYR/USD

04The forex market hedging is so very important for exporters of palm oil. Presently, CPO prices are influenced strongly by fluctuations of MYR against the USD. CPO prices rise on weaker MYR against USD and soften on recovery in MYR. As at today’s close, the GMT T.T. indicated that the MYR is now in a correctional phase and called for a firmer MYR in days ahead.

FOREX IDR

05

After having remained weak for the last three weeks, the Indonesian rupiah has started to give indication that it is entering into a minor correction phase. As at Friday’s settlement, the GMT T.T. trading signal entered into a bearish convergence and signalled that the IDR would recover some of its recent excessive losses in the near term.

M’SIAN CPO MONTHLY OUTPUT – STOCK – PRICE

06The Malaysian CPO production in December 2015 continued to decline and this production pattern is likely to persist into the early part of the second-quarter of 2016.

Palm oil stocks dipped at the end of December 2015 and has clearly shown that it has reached its peak in November 2015. A stock level below 2.2 million tonnes would be very supportive for prices.

I believe a simple, historically tested and proven, trading edge with well managed risk parameters is the foundation for consistent trading success.

Looking forward to seeing you at the 1-day Palm Oil Master-Trader Tutorial (MTT) in Kuala Lumpur on 5th March 2016. (Before the KL POC 2016).

Profitably Yours,

G.M.Teoh