Daily Report 060315 2015-03-06

Main contract of domestic gold AU 1506 rose to a high level and then dropped. The moving averages reveal a downward trend in the short term. Strong pressure was found along 5-day moving average at RMB 247. Previous short positions opened at RMB 254.5 could be held. Investors may open short-term short positions if the gold is weak during intraday trading, with stop-profit set at RMB 244 and stop-loss set at RMB 247.5. Sound investors should focus on the operational opportunities after the region between RMB 244 and RMB 250 is broken through. The European Central Bank President Draghi announced the details of bond-purchasing project. The economic prospect is relatively positive. The Euro remains a downward trend while the US dollar index soars strongly after breaking through consolidation region. The US non-farm payrolls of February will be released tonight. It is expected that the figure will be around 240,000 with the unemployment rate at 5.6%. After the plunge in Tuesday and Wednesday, the overnight gold ETF positions remained flat in the past two days, indicating the funds’ selling momentum is slowing down. However, if the employment data is better than expected, the positions is likely to drop further.


Main contract of domestic silver AG 1506 rose to a high level and then dropped as well. The moving averages reveal a downward trend. Continuous pressure was found at RMB 3750 in short term. A downward trend is expected to take place after the triangle convergence region is broken through. It is believed the silver may remain a downward trend afterwards. Previous short positions opened at RMB 3800 could be held. Defensive moves should be prepared at RMB 3700. Opening short positions at RMB 3560 during the intraday trading should be cautious, with the stop-loss setting at RMB 3580 and stop-profit setting at RMB 3490.

Stock Index

Stock index was dragged down by heavyweights, such as banking stocks, insurance stocks and nuclear stocks. However, china north locomotive and rolling stock bolstered the stock index half an hour before the market closed. During the National People's Congress and Chinese People's Political Consultative Conference, investments on infrastructure and water conservancy drag up the stock market. Banking stocks have been performing rather weak since the Chinese New Year. The Premier claims that ‘we still have a number of measures of macro-control to be used in case we may face certain problems.’ This statement is considered as a guarantee that the government will release policies to improve economy when the economy is getting weaker and weaker. In terms of trend, stock index is believed to fluctuate during the intraday trading and investors should grasp the opportunity to open short positions when the index is high.


Yesterday PP futures opened up high and followed with downward trend. It opened at RMB 8360 and closed at RMB 8255. The trading volume is to 802000 lots; the holdings are 253000 lots. For upstream, the Korean propylene price decreased $15, the average price is $1025. In terms of spots, today domestic pp market quotation dominated by price adjustment.
Like wire drawing, today's mainstream of north China bid in RMB 8400-8600 per ton, east China mainstream quotation in RMB 8600-8800 per ton, south China mainstream quotation in RMB 8700-8850 per ton.
                                                                                    Dong LV (Investment Certificate NO. TZ008452)