Sunday, April 26, 2009

CPO 27/4/09 - take some cautions

I made a typo error here as the stop should be 2340 instead of 2430. My apology. If you had followed that, then you would got back in when price broke up above its recent high.

On the daily chart, I continue to have a bit of worry as last week. But this time the reason is lightly different because the ADX has started to rise again which is telling us the trend is back in action and taken out my projected high of 2,600. But I get a little worry because the Stochastic has now formed a minor bearish divergence as it is unable to form a higher peak to reflect the higher price. Though as last week, the MACD and the Bollinger Band has not flashed any sell signal, but I would now keep a tighter stop at 2480.

But again the weekly chart seems to contradicting the daily chart's cautious mode as it is getting increasing bullish. Its MACD has crossed up its zero signal line which is usually more bullish. A most wonderful reading would be the weekly ADX has now begun to rise which is telling us a trend may be in formation. So with these 2, I am now starting to watch out for 2830 for its next target.

You say "2,820" ? But the global economies are in a serious recession. Yes, hell what I know these big issues, leave them to the 'experts'. I only read what is in the chart and try to educatedly arrive at a conclusion, If you want some form of fundamental "assurances" for this rally, ok, try this - the crude oil may soon start its big bull ?

FKLI - 27/4/09 - What me worry ?

The market just continued to climb higher contradicting all your experts' preoccupationed bearish thinkings. This is just another fine example of their standard behaviors that when the market warrants cautions and they get euphoria, but when the market is already confirmed in a bullish mode, they turn unnecessarily "prudently cautious". As I said last week that I have no reason to believe that the bull is over as there were no yet signals in the charts.

The daily ADX continues to go higher and now it is at 44 which is confirming the market's strong trend. As long the ADX is at high level and rising, we should keep our eyes on the MACD indicator as it is a trending indicator. Many people have been warning you on an "overbought" situation in this market because they see the Stochastic has gone in to the 80's zone and they think the market may weaken soon.
In a strongly trending market, an overbought oscillator indicator can stay "overbought" for weeks or months and price will just reach one new highs after another without any corrections. Of course I think nobody in this world can tell us for sure when that a move will end, but for us technical analyst, we need to see some evidence to warrant such a comment.

Meanwhile the weekly chart met Well Wilder's extreme point trading rule by going higher than the previous week's high, so the weekly chart signal is confirmed . Both the MACD and the Stochastic continue to be positive and rise. In another word, the weekly chart's bull is well supporting the daily one. And I note the weekly MACD is fast approaching its own zero signal line, when crosses, it would present another buy signal and this kind of signal is usually a more powerful kind.

At this moment, I would just place a stop at 971 to protect profit . Other signs I would keep a watch out will be a MACD cross down or the Stochastic crosses down the 80's signal line or the ADX turning flat or start to fall. Otherwise why worry so much about the return of the bear and misses out all the fun ? Since the market has already breached 996, I would look at its next target of 1050's and to con what our politicians always say: "God's willing,", we may even see 1115.

Wednesday, April 22, 2009

KL Stocks - Dgate, DPS and Gpacket

Do you do marijuana ?

In our lifetime, we finally see the debut of the first ever publicly-traded Medical Marijuana company is here, and its called…Medical Marijuana Inc. Right now, the ticker is known as CVIV , but they will shed its other businesses and change the name and ticker. Since they will be exclusively in the marijuana business, some new names have been jokingly suggested for the new ticker symbol:


Their CEO is Bruce Perlowin, a successful telecom entrepreneur who is also known as “The King of Pot“. No joke here, if you do not believe me, Google it.

And for those of you reactionaries who think pot is a illegal drug in the United States, in LA and some other major cities, there’s a weed “clinic” found at almost every street. They are as almost as common as McDonalds, KFC etc. Anyone can get a prescription written up.

This company could be the next Apple or something. And Wall Street already screams : "Legalized Marijuana Company Now Public" and already a second public company is entering the weed business, called Cannabis Science (GFON). We all know there are many Wall Street are huge fans of weeds, so you know why they are so "high" on these stocks.

Tuesday, April 21, 2009

KL Stocks - TWSCorp, Zelan and YTLPower

Sunday, April 19, 2009

CPO - 20/4/09 - Bigger bull than we think?

This market has gone dangerously near to its next upside target of 2,600. We should keep our stops tighter at 2430. I am a bit nervous now as the ADX has gone above both the D+ and D- and it has stalled for the last few days at 40. I am reading his as a sign of the trend begins to weaken, though the MACD and the Stochastic have not flashed any sell signal yet.

Though the daily CPO chart is not too encouraging but its weekly chart is of a different picture. The weekly ADX has just begun to rise which is confirming the current trend. The weekly MACD has just crossed up is zero signal line which is usually a more bullish buy signal. But as the Stochastic has already gone above the 80's zone, so you expect some form of consolidation or even some retracement.

I would still hold my breath for the time being as there may still be a chance that CPO's bull may turn into a bigger one than we expected.

Kloffe 20/4/09 - Bullish trend should continue

This market just went higher amongst the market experts' disbelief. This is just to show market often lead the way before the fundamentals surface up. I am not saying that the current global financial crisis is over, but this reflect the returns of some form of confidence to the market base on all the international governments' efforts to solve the problem. Of course this confidence can easily disappear again as fast as they appear.

Meanwhile the daily ADX is still surging and the MACD is still going up. So I have little reason to say that the market is over. The ADX is now at 35 which is confirming a strong trend is already in place. But it would be logical to expect the market to consolidate and retrace a bit now and then.

The weekly chart has just flashed another buy signal when the D+ crossed above the D-. So by following Wells Wilder's extreme point trading rule - if price goes above last week's high, then the buy signal would be confirmed. Price still maintain above the Bollinger Band top and both the Stochastic and MACD continue to rise, we have little reason that this bull is over.

I would place my stop at 942 to protect my profit and I would not talk about the return of the bear unless I see price closing of below 910.

Thursday, April 16, 2009

KLSE's 20 highest debts to equity companies

During any financial crisis, those companies with high debts levels will be extremely 'dangerous'. Their bankers and creditors may get jittery and pull the rug under their feet.

Stocks Debts to equity ratio
1)MBSB 1252.44%
2)KYM 588.30
3)SILKHLD 548.78
4)SUMATEC 441.37
5)AIRASIA 410.39
6)RANHILL 402.23
7)ENCORP 399.87
8)GBRIDGE 360.58
9)LUSTER 327.77
10)AEON 316.03
11)RCECAP 310.72
12)NGUIKEE 310.58
13)PJI 299.58
14)PUNCAK 297.24
15)LITRAK 292.89
16)AMMB 292.15
17)CAROTEC 291.41
18)LIQUA 290.5
19)NEPLINE 286.11
20)SMPC 285.98

But then you would notice that obviously did not stop some of them away from the current rally.

GBP - return of the bull?

I last wrote on GBP on the great possibility for the return of the bull on late February. Market has been range bounding which was confirmed the lowly ADX of below 20's. I also placed in several conditions that should be met before we can see the return of the bull.

Those conditions were the MACD must go above its zero signal line; D+ goes above its previous peak and prices go above 1.4984 which was its last factal point. Currently all te above have been met. From the daily chart which I have drwn 1 horizontal line to mark out its recent range and also I have drawn another up sloping line to connect up its recent lows. This is what we would call a ascending triangle chart formation which is usually bullish. Yesterday closing price had broken up above it. The most promising part about this chart is its ADX which is also breaking out above 20's and rising. This is effectively telling us that a trend in this market may be in progress.

Meanwhile its weekly chart's ADX has been falling above both the D-and D+ would tell us that its prioor bear trend may be over. But I note the MACD though positive and rising but it is still relative far from its zero signal line which is not too assuring yet. And we would need to see this Friday's closing price to hold above the Bollinger Band top in order to give us more assurances.

The upside targets to watch out for are: 1.547; 1.609 and 1.668. Place your initial stop at 1.45.

Below is an extracts from some fundamental reasons as to why GBP would rally. These are written by traders who actually have their own real $$$ on the table and not those who toy with other people's money type:-

The British Pound has steadily climbed since making lows in mid-March, fueled by the stock market rally. The rise in equity prices has sparked a repatriation of funds to the UK, as investors look for investment opportunities at home, instead of parking funds in US Dollars. Forex traders have also become bullish on the Pound versus the Euro. The Eurozone faces very similar economic challenges to the UK and there has been a great deal of in-fighting between the countries that make up the union, which could delay government response to the crisis. Fundamentally, Britain has shown some signs of stabilization in the housing market and in manufacturing, whereas Continental Europe appears to be on the downswing. Yields on UK debt remain attractive when compared to similar treasuries in the US, which could bring in foreign investment. There are still plenty of challenges facing the UK banking system and, much like the US, the government has spent billions instituting rescue packages for banks. This may cause traders to be skittish and jump ship at the first signs of trouble. The month-long rally in the global equities market has been impressive and has somewhat eased investors' worst fears. However, if the rally reverses course, the Pound and other major currencies may fall out of favor, as investors once again flock to the relative safety of the Dollar.

Citibank and Bank of America

Both the stocks' daily chart has already confirmed the buy signal as price has closed the moving average envelope and the MACD is now above the zero signal line. Both stocks also have bullish divergences found at the daily chart BUT both also have NOT formed such at their weekly chart. So at this moment I would only call this a technical rebound play and not one of those that you would buy for a longer term. The weekly MACD though are positive and rising in both cases but they are still "far" from thier respective zero lines.

For Citibank, I would watch for 9.00 / 12.00 as upside targets and keep as stops. As for Bank of America , upside targets would be 15.00 / 20.00 and keep 7.50 as stop.

I do not think the US financial sector's crisis is over, thus that's why we are only seeing a technical rebound and not a market terminal point. I think there are still plentiful of skeletons waiting to jump out at us. So trade these 2 stocks and do not harbor any thought of buy and hold yet.


Most probably its brand is well established in this part of the world, I have many friends and friends of friends asking me for the past few months the golden question - "can buy or not?"

Let's me be honest here, technical analysis can work well with futures because we do not have to worry about magician book keepings and bankruptcies. So when I apply technical analysis on stocks, I am a bit of worried. I mean stocks like Transmile and IOI can flunk so much nasty surprises, what else can we say about those newly IPO stocks which reported beautiful sets of accounts before and during their debut and then flop within the next 2 years.

So as AIG is concerned, whatever I write here is purely from the TA readings and nothing to do with its financial background. But from I have gathered from those left handed sources, you should be careful with many of these US financial stocks because many of them still have some skeletons hidden deep inside their closet. Stocks like AIG is now riding with the DJIA in a nice bull rally, but my thinking is :- take profit whenever the signal is in (like a closing below the 30 SMA or a MACD crossdown etc) This is still a time of big crisis and not a time for buy and hold mentality.

AIG has recently strongly rebounded from 0.31+ to the current 1.60. I know there are some of those self acclaimed great "buy low sell high" artistes will say "I told you so". But I also know someone who thought 3.00+ was very low and got in and bought this stock. From the daily chart, I would touch this stock until when it broke the top Bollinger Band or the MACD crosses up above its zero signal line in mid March. If you are thinking of buying in this stock now, then the next signal would be to park your buy 2 ticks above the high hit 2 days ago.

Both its daily and weekly chart are extremely bullish with divergences as it is now recovering from an extremely oversold situation. Though I note that the weekly chart MACD is still relatively far from its zero signal line. With this, this stock may go back and test the low sides. But if it goes northward smoothly, then It should easily retest the 19.00 area. Keep 0.88 as stops. BUT remember what I said in the 2nd paragraph. Stocks are not like futures, they can go bust anytime, so keep your ears up for any bad news and react accordingly and never try to cheat yourself that that this is a solid counter!

Wednesday, April 15, 2009

Revisiting the crude oil

Since I last wrote on crude oil on February, the market has managed to go up a bit from mid March and then it is caught in another range. (as marked out by 2 horizontal lines) This is not unexpected as ADX continues to stay below its 20 signal line which is effectively telling us that this market is quite "dead". Other confirmations that this market is not going anywhere is while the Stochastic and the MACD are negative, the D+ is still holding above the D- which is bullish. Whenever we see the indicators failing to complement each other, then this market is NOT going anywhere .

But I remain as bullish as I last written on the crude as the bullish divergence is still intact. And now the MACD has managed to stay above its zero signal line, I would rather bet on the buy side. But of course that is not saying that I wil buy now, I would rather wait for a breakup with the ADX rising again. USD 56.00 should be a crucial level to keep an eye.

The daily subtle bullishness is well supported by its weekly chart where a bullish divergence is also found between prices' lower low and the MACD's higher troughs.Both the Stochastic and MACD have been positive and continue to rise. The only catch here is the MACD is still far from its zero signal line, so maybe we still have to be patient. The weekly ADX which is located above the D- and D+ is now falling which usually telling us that the prior bearish trend may has ended.

There is one item found in both the daily and weekly chart is the tightening Bollinger Band. Whenever this happens, it is trying to tell us BIG EXPLOSIVE moves are not too far in front. So I get increasing excited over this commodity. It is as if you are watching Ms. Lín Zhì Líng slowing pulling up her skirt in front of you. Yes sir.

Tuesday, April 14, 2009


Monday, April 13, 2009

Ranhill, Scomi and Terbau

These are some of the interesting stocks I chance upon. The 2/3 short horizontal lines on the right side of the charts should be their upside targets.

愛情來了 (Love Go Go)

This 1998 Taiwan film directed and written by Chen Yu-hsun
(陳玉動) was a splash at the 1998 Toronto Film Festival. Chen was directing TV sitcoms before doing this big screen item which is his 2nd. after his 1995's "Tropical Fish " . This movie is starring: Tang Na (堂娜) , Eli Shih(施易南), Chen Cheng-hsin(陳進興), Liao Hui-jen (廖慧珍), Huang Tsi-chiao(黃子佼)

Th story consists of focuses on each one of a few Taipei characters' love and heartaches : a lovelorn baker Ah Sheng (Chen Ching-shin) who is childlike, shy, a little overweight, and physically awkward. But when Li Hua (Tang Na), his childhood sweetheart, visits his bakery every day, his life takes a romantic turn. He expresses himself through food and song: he starts baking special pastries and gives them outlandish names: "I'm sorry" cakes, "Love you forever" tarts. But she fail to recognize him. Eventually, he writes her a letter (and that has to be snatched from his grip by his young foolish assistant and gave to the girl on his behalf) , spilling out his heart: she had vanished when they were graduating from primary school, but in his imaginative mind , remained with him as an "invisible friend", who served to give him courage and comfort during a lonely sad teenager years (both his parent were killed in an auto accident) . His ultimate romantic gesture is to offer to appear on a TV amateur singing competition despite hispathetic singing , belting out his fondness for her . Watch the ending scene when he finally goes on the TV and sing - it is absolutely fabulous! Li Hua's grief at being dumped by her boyfriend is interrupted by the riotous TV host's maniac laughters as she tries to continue weeping while watching Ah Sheng's televised song tribute to her.

Throughout the whole film, the character of Tang Na walks with a limp which is actually the result of her auto accident in real life.

Another lovelorn typist Lily (Liao Hui-jen) who is of a bubbly and naive character. Her story starts when she finds a pager on the ground. It turns out that the owner ( Huang Tsi-chiao) who is actually a jerk but pretend dying to meet her because she talked him out of his "intended suicide" (probably because she has such a sweet voice ) . But she's rather big so when they agree to meet, she embarks on a futile crash diet/trimming program. As he is a creep, he rejects her outright when he meets her at the park. The scenes to watch out for are when she and her office friends talk about men and all those stuffs she adds on her bowl of instant noodle when she watches the TV food program.

The final story sends Ah Sung (Chen Cheng-hsin) the salesman to Li Hua's (the breath taking Tang Na!!!!! ) beauty salon, where he inadvertently intervenes to protect her from the enraged wife of her boyfriend. I am very moved by those scenes starting from the part when she weeps after an argument over the phone with her lover while she is cutting Ah Seng's hair onwards toward the very end where she went home to catch Ah Sheng's TV performance. During which she read the goodbye note left there by her lover. She just sat there and cry and cry. It would make every man in this world want to lend their shoulder/chest for her !

This film is definitely the BEST Taiwan movie I have watched over the years. It is genre-breaking style silly business with inventive touch, that finds all the sweetness inside the ridiculous
characters' exteriors . But I fall in love with Tang Na the first time I saw this movie - she is soooo woman.


Some of my friends are thinking of buying HSBC shares. I myself still own some of their odd lots left behind from years ago. So I decide to take a look at this stock now. HSBC is listed on both UK and the US. At a glance I would rather talk about the US entity since the UK's has nothing of extreme bullishness therein.

The US HSBC has already registered a lower low and a higher MACD troughs, thus presenting a bullish divergence. Price is now closed above the top Bollinger Band with the MACD crossing above the zero signal line. The D+ has also crossed above the D- , all these are considered as bullish factor. But then since the ADX still remain flat and at a lowly 16's, I would not do anything significant as the Stochastic has already gone overbought. (if the ADX has been rising and go with a high value eg. >25, then I would watch the MACD and sideline the Stochastic). You may just want to nibble a bit here. I would do something once the Bollinger Band crosses up above the mid term moving average (red line).

HSBC is like many stocks now which are merely doing a techncial rebound from a grossly oversold zone. The weekly chart offers no evidence that it has begun a new bull cycle yet. So I would just treat this as a strong short term trade and NOT as a longer term investment vehicle. You may want to watch 38.00 and 47.00 for resistance.

Fools' gold ?

For some strange reason I notice that many financial market "experts" seem to have fallen in love with gold. As can expected from people who are in love, they tend to be blinded by their object of affection regardless how glaring their weaknesses are. During the current global financial crisis, it seems more and more of them are calling the unsuspecting investing public to share their bject of desire. Another argument given by them is that all the paper currencies are fast turning into Zimbabwe notes (latest model is 50 billions notes) and recently one of them even predicted that gold will hit 2,500. (sound familiar? remember another of them last predicted crude oil will hit 200
?) And some local banks even launch their gold funds.

As a student of technical analysis on financial markets, I would go over the charts first before deciding to concur with them or not. I would first look at the weekly chart as they are the one that would tell us the "big picture". And they are telling me the following:-

1) the first thing that immediately come into my attention is a double tops chart formation as marked out by a horizontal line. A double tops formation is usually considered as an extreme bearish formation, upon confirming their breakdown, the distance going down will usually be sizable.

2) then the next item that jump in front of me is a bearish divergence found at the MACD that has formed a lower peaks while prices have form an almost equal highs. This kind of bearish divergence is usually considered as a class 2 type. A type 1 would be one with lower MACD peaks but prices doing a higher high. But nevertheless, this kind of bearish divergence is still extremely profitable if one is taking a short position.

3) the next item is prices have already closed below the 20 moving average (boxed area) .A 20 SMA is usually a reliable support or resistance line. In this case , prices remain below it constitute a bearish confirmation.

4) the Stochastic has already crossed down and go below the 80 signal line. Upon crossing down the 50 signal line would probably see more intense selling coming forth.

5) the D+ has also crossed below the D- which is giving us the first sell signal if we follow Wells Wilder's trading rule (Wilder invented this indicator) So by the coming week and if price goes below last week's low, then it would meet his extreme rule trading confirmation for a confirmed sell.

The only item that I do not like about this chart is the falling ADX which is telling me that the trend may NOT be in yet. I would like to see the ADX rise before saying that gold is heading for a major tumbling.This low weekly ADX most probably is contributing to the unconfirming daily chart as there is NO bearish divergence found. So I would expect gold to go one more trip upside, probably hitting the recent high again or even touch a new high before the next new direction is found.

So my conclusion on gold is:- unless in the near future gold can go to a new high and STAY there and beyond (thus erasing all the bearish divergences and the double tops formation), I WILL NOT buy/invest in this commodity even you point a gun at my head .

I also wish to share a kisah benar type of story with you on my mother's experience on "investing' in gold. My late mother was like many of the womenfolk of her era who deeply believe that buying gold as the ultimate investment. So during her younger days, she bought in many gold coins issued by the local banks and she also bought some gold chains, rings and other ornamental items for her 'investment'. When she passed away 2 years ago, I took out all her gold investment items and get some quotations from banks and goldsmiths trying to switch them over to other type of investment vehicles. Even without taking into consideration of inflations and opportunity cost, their quotations are near heartbreak levels. So be smart, do NOT buy physical gold unless you are thinking of becoming a boat people and you need them to buy your way to freedom .

Sunday, April 12, 2009

CPO - 13/4/09

Since the ADX continues to rise and the so is the MACD, so I have no reason to think that the current bull moves will be over soon. Though I will maintain my stops at 2169 to protect the profit. As in the case of Kloffe, the Stochastic has gone into 90's area but since the ADX has now risen to 31, so I would look at the MACD rather than the Stochastic oscillator.

The weekly MACD has now got nearer to its own zero signal line which is getting increasing bullish. Once crossing this line , it shall constitute as another new buy signal.

The next upside target would be 2600.

FKLI - 13/4/09 - More explosive moves to follow ?

This market has been defying all the doom sayers and continue to rise further, again proving to us that fundamental analysis fails miserable in reading and predicting the market. The daily ADX has now risen to 25 which is confirming to us there is a trend now in this market and since it is still rising, that we can say this trend is still intact. The daily MACD is staying above the zero signal line which effectively confirming the bull. Though the Stochastic is now reading 92's which some people would call it "overbought", but I would not pay too much attention to this indicator now as the ADX is in control and instead we should pay closer attention to the MACD. Oscillator indicators like Stochastic, MFI, RSI,W% etc can remain 'overbought' for weeks and months and prices will just keep going higher and higher.

The weekly chart is also confirming the current bullish mode. Price has closed above the top Bollinger Band and did higher than the previous week's high. Both the MACD and the Stochastic remain positive and continue to rise. When both indicators are in "agreement' , usually the trend is more reliable. Since the Stochastic has crossed over its own 50 signal line , we shall take that as a new buy signal. And when the MACD crosses above its own zero signal line, that shall become the next buy signal.

As I have alerted you all that since the Bollinger Band has been squeezing for some weeks, any eventual breakout wold be of the explosive and powerful kind. I think we may just be witnessing the beginning of a big one.

I would place my stop at 915 just in case this rally fails and set my upside targets at 974, 1,084 and 1168.

Friday, April 10, 2009

塚愛 In Love With the Dead

I recently watched this HK horror/love movie which I think is quite good. Try to get a DVD and I am sure you would not be disappointed:-

In Love With the Dead


This is another one of those recent Hong Kong's sleeper movies
by famous horror films director Danny Pang (彭発) which is of fairly high standard but did not really make it big in the box office. It is a rather slow love / horror themed movie about inner and outer ghosts with a great twist at the end.

The movie as might be expected for a film dealing with terminal illness , “In Love With the Dead” is a pretty gloomy affair as the director plays atmosphere strike the perfect combination of eerie lighting and moody music. The story is about the leading lady is diagnosed with cancer, her loving boyfriend (Shawn Yue - Infernal Affairs 2) swears to take care of her. Inevitably, this proves to be a difficult task, not least since she soon starts acting very strangely, lurking around in their dark flat all day. Disturbed and depressed, Ming falls into the arms of attractive co-worker Fong , resulting in even more angst. Living with Ming and Wai is her younger sister Ping, who one day remarks that the poor woman looks like a ghost from the horror comics she loves reading. From then on, things take a turn for the sinister, as Ming begins to suspect that she may well be right. The ending is quite sad.

The movie also comes with a fascinating sub- theme regarding the clash between modern Western-style and traditional Chinese medicine. In one scene the leading lady follows what the "how to beat cancer" book by eating back all the yukkies stuff that she has just vomited out. According to the book, by doing that her cancer will get cured. then in another scene, she practices a kind of Qigong called Bau Chew Qong (embracing the ball) which I also learnt from my former Qigong class.

Tuesday, April 7, 2009


Last week a friend of mine was mentioning about this stock and today it comes out from one of my explorations. Price has closed above the moving average channels with RSI moves up above its 50 signal line while the the positive MACD continues to rise toward its own zero signal line. All these are bullish indications and confirmation.

Please note that the D+ has already crossed up above the D- yesterday, by applying Wells Wilder's extreme rule, today price has already exceed yesterday's signal day highest high, thus qualifying a buy into this stock.

For the past few days, the KLSE has been breaking higher, so there are many stocks that are going up. What makes this stock more interesting is its MACD has confirmed a bullish divergence which upon confirming a breakup, usually move in a bigger proportion than other stocks that does not register such bullish divergence. And the most wonderful of all is that a similar bullish divergence is also found in its weekly chart.

I expect this one will retrace to RM2.70 or even to RM3.25.

Sunday, April 5, 2009

CPO - 6/4/09 - Breakup finally !

The breakup above its recent multi tested resistance has finally occurred with prices firmly closed above it. Both the Stochastic and the MACD are in agreement and going up. The D+ which I mentioned has also given us a confirmation by breaking up above its previous peak. The most encouraging sign is the previously flat ADX has already started to rise by cutting above the falling D- and now has reached 24. This is confirming the current trend has gotten reasonably strong.

The weekly chart has also turned clearer as closing price managed to clear above its prior range. And the previously falling ADX has stopped falling may be confirming an end of its prior range bounding. The MACD continues to get nearer to its zero signal line which should be read as increasing bullish.

But as both the daily and weekly Stochastic has gone into the overbought zone, there could be some retracement in the coming week before the upside moves continue.

We should watch 2360 as its initial upside target.

FKLI - 6/4/09 market clebrates Najib ?

Last week my stop of 878 was hit on Monday when price went to a low of 864. And the newly established shorts when prices cross below the upper Bollinger Band together with the Stochastic crossing down from the 80's level. But the new shorts was a short lived one as prices crossed up again the upper Bollinger Band on Wednesday's closing so we would have re-established a new long contract.

The Stochastic has turned positive again and the MACD has finally crossed up above its own zero signal line which is usually a more powerful bullish confirmation. But the most promising item in the current reading would be the rising ADX which has just crossed up the falling D- which is usually another powerful buy signal. But having all these bullish confirmation from the indicators, I would still prefer that we can have a daily closing of above 914 which has been its recent high and therefore has become a resistance.

The weekly chart has finally become clearer as the Stochastic has already crossed up which is complimentary to the positive and still rising MACD. And prices has already broken up above the upper Bollinger Band which could be taken as an initial buy signal. As the Bollinger Band has been tightening , this breakout could be the taken as a forerunner of a major explosive bull run. BUT as there is no bullish divergence found in this weekly chart and the MACD still remain far from its zero signal line, I think we should remain cautious at this moment and do not get carried away by the new Prime Minister and the illusions of his new regime can change our economic structure overnight.

We shall place our stop at 888 just in case the market turns back down again.

Thursday, April 2, 2009

The "PROFESSIONALS" and your money

You should remember how an international audit firm helped Enron screwing everybody ? And now another of the big audit firm is getting sued. All those 'professionals' that suppose to give the investing public confidence are nothing better than Madoff. I have been wondering how come those rating agencies have not receiving similar treatments ?

Go watch Jack Neo's film "Just Follow Law" where Fann Wong went to consult a medium who demanded expensive fees for his "job". When Wong asked whether that comes with a guarantee that his trick will work. Listen how the medium answers her is a pure magic. Spoke so well on all those 'professionals":-

Reuters:- Accounting giant KPMG was hit with a billion-dollar lawsuit on Wednesday over claims its "grossly negligent audits" helped trigger the collapse of a top subprime mortgage lender at the start of the U.S. housing crisis.

New Century Financial Corp, the largest independent provider of home loans to people with poor credit, filed for bankruptcy two years ago amid mounting customer defaults.

Its failure rippled across the U.S. mortgage lending industry, sparking a string of other bankruptcies that roiled financial markets as banks booked losses on billions of dollars in mortgage-linked securities at the heart of the current global financial crisis.

The lawsuit, on behalf of a liquidating trust formed by New Century debtors, was filed against both KPMG International and its U.S. arm, KPMG LLP.

It accuses KPMG of helping cover up "catastrophic" problems at New Century -- including accounting and financial errors -- that led to its collapse.

"As New Century's auditor, KPMG failed its public watchdog duty," the suit says.

KPMG spokesman Dan Ginsburg said he had not seen the suit but issued a statement saying the company had acted "in accordance with professional standards" in its dealings with New Century.