Daily Report 051214 2014-12-05
Stock Index
The stock index soared again yesterday, and the futures contracts created the greatest gain since going public. Transaction exposures have been released after previous adjustments. Stronger capitals were sold via undertaken, leading the index broke technical pressure point. This further prompted the market grow in a faster speed. Although there are no changes happened on the macro economy, the funds, or leading areas such as securities and insurances, the market is more directed by the sentiments. Still, divergences exist among long short positions. It is better-off to follow the lead in a short run.
The PP futures contracts opened low at 8,204 hands and closed at 8,251 hands with some fluctuations during the sessions. The trading volumes fell 21,752 hands to 252,000 hands; positions fell 8,892 hands to 167,000 hands. On the upstream, propylene continued to decline last night. Specifically, FOB propylene dropped $10 to an average price at $875.5 per ton. On devices aspect, although this week several enterprises have closed to overhaul, some of them will only be out of operation for a short period and have little impact on the overall market. Spots, the domestic PP market slightly dipped yesterday. SINOPEC priced its PP for sale in the central, southern and eastern China. That led to a bearish atmosphere in the market, and manufacturers decided to sale under the pressure. Manufacturers on the downstream were hesitating that just purchased for small amounts. For wire drawing prices today, the North China mainstream quotation is around RMB 9,650-10,000 per ton, and the East China mainstream quotation is RMB 9,850-10,100 per ton. Currently hold the bearish view for the market based on the expression of moving average system and the MACD. On the operations, short positions can be hold, and for investors that taken no positions can wait and see.
                                                                                 Dong LV (Investment Certificate NO. TZ008452)