Crude Oil Historical Price Chart

It is a historical price chart for crude oil since 1861!

As said in the news article:
"Got a feeling the bear market in oil is about to end? That the reversal is right around the corner? ...Good times (the bull market) for the black stuff tend to be short-lived, while the bad times (the bear market) linger anywhere from 11 to 28 years, according to Credit Suisse. We’re only seven years into this tough stretch."

If a picture paints a thousand words...It is a great chart for traders to have it.

Click on the chart for bigger view:

Red is Bull, Black is Bear.

Source: marketwatch.com

Breaking 1000 Billion Market Capitalization

Reading back the old posts, "In Defending 1000 Billion Market Cap" and "What Is 1000 Billion Meant To Me" which were published on 16/10/2014 and 24/12/2014 respectively.

The FBM KLCI 30 component stocks was hard hit to close 1722.16 on Monday at 15/6/2015 and the market capitalization was also down below 1000 Billion! Look into details and compare the index levels and the market capitalization that we did write in the previous posts, then continue the reading below...

Felda Global Ventures or FGV (code 5222) will soon be replaced by Westports Holdings or WPRTS (code 5246) in the FBM KLCI 30 component stocks. But, the market capitalization will probably be added nearly 9 Billion (FGV 6B against WPRTS 15B)! Thus, it is believed that the 1000 Billion will be well defended unless the FBM KLCI index is getting even lower!?

Forget about FGV or WPRTS since they are just less than 2% of the 1000 Billion. We did face below the 1000 Billion when the FBM KLCI index was at 1740 last year, and now below 1730 level only we have the same problem, why? do your own soul searching!

1730 verses 1740 had shown 10 index points advantage in defending the 1000 Billion, adding WPRTS will probably allow more buffer right!

All the above numbers is enough to grill your mind overnight. Since we already have a government trying very hard to skew the numbers to avoid hitting the debt rate ceiling, what is the problem by taking out and putting in different weighting stocks to defend the 1000 Billion? Time will tell you that "you" may not worth even half of the 1000 Billion and where will be the FBM KLCI Index level!? 1500, 1000 or 500?

You may probably see a double on 1000 Billion in future but definitely not in years to come! Let's hope that Bursa Malaysia has a magic wand to turn the 1000 Billion to 2000 Billion on its 30 Blue chips and our retirement money will grow tremendously by the time we are at the age of 55!

Bursa Malaysia Derivatives - 7

Go to Bursa Malaysia official website, there is a Derivatives page, we can find the market statistics section and get all kind of historical data on futures products traded in Bursa Malaysia Derivatives. There is an interesting page that tell us the market demography on cpo futures locals as shown below:

source: Bursa Malaysia

What was the percentage contributed by locals from the above table October 2014 to March 2015? More than 30% of the cpo futures total volume was generated by locals!

The memory of cpo futures open outcry in the KLCE... Local's vest:

The Local's Vest

Bursa Malaysia Derivatives - 6

The Sun Business on Thursday, September 21, 1999 with big font words on Locals stay away from trading floor...

Click It For Bigger View

COMMEX, MME, MDEX or KLCE, as I still like it most on the original name, was an open outcry trading exchange plus electronic trading in KLOFFE before taking over by Bursa Malaysia, and being named Bursa Malaysia Derivatives to manage all futures contracts in Malaysia as what we call it at present.

The "boycott" incident was happened before ending year 1999 where I was a very small player in the open outcry cpo futures trading pit, having bad time to survive but had to follow other locals in taking a long week off. No doubt the satisfaction was there seeing the "50%" drop of trading volume, I was told by locals that there were some locals who started trading again due to personal reasons, paging orders QUIETLY from their own broker houses...

Any way, it is already 16 years now; such memory may have been fading...especially the futures market is getting much bigger now a day but I think only half of those 40 over active open outcry locals who are still trading now and the other half had totally ceased to be locals or just seasoned players in this futures industry!

I did list down some active locals with 3-letter alpha codes out of more than 40 active locals in my first book - Trading Crude Palm Oil Futures @ Bursa Malaysia Derivatives. Readers who have the book can turn to the page and read about the locals.

All knew that if locals did not want to trade, they were the ones not making money...but, sometimes, this kind of demonstrating displeasure did help in waking up the relevant authorities to rectify injustice and acknowledge the locals' efforts in growing the futures industry.     

Bursa Malaysia Derivatives - 5

A Day Without Locals In KLCE

There was a day where all locals stayed away from the cpo futures floor trading:

Click It For Bigger View

This is a page that I got it from the Star Business on Thursaday, September 21, 1999. See what was the total open position? 6,968 contracts as compared to about 180,000 contracts now a day!

What was the volume? 517 lots! What happened to the open outcry floor trading on that day? 

As quoted in the Bernama, the market was dampened by a boycott on Commex when the call by local traders (who trade on their own behalf) for lower fees in the annual subscription was rejected by the Commex board, dealers said. (Commex was the ex-Bursa Malaysia Derivatives that we used to call KLCE before merging. There were names like MME, KLOFFE and MDEX too.)

I think the average daily volume for cpo futures trading was above 1000 lots when I was a floor trader before turning to be a "new and the last" local there, and such a volume was actually more than 50% drop not 35% drop as shown in the paper!

There will be another interesting page about the cpo futures trading floor at that time when all locals stay away from the cpo futures trading pit. It was about the "boycott"! Wait for a next post.