CPO - Yes, this one is dead again - 31/8/09

As warned last week, the previous Friday's candlestick was problematic for our previous shorts. The market took out our shorts on opening. This is one of those situations when our trade does not work out as it should be, which occur sometime and should be expected. As long as you follow the trading rules , then you should be alright . Losses, if any, is usually bearable.

Now that the ADX has fallen below the 20's signal line and it is at 16 last. Prices are now also stuck within the Bollinger upper and lower bands. While the Stochastic is positive and rising but the MACD remains negative. All are confirming that there is no trend in this market.


The weekly chart is also confirming what we are reading in the daily chart. The weekly ADX has also fallen to 17's while the Stochastic is positive and the MACD is not. All classic signs that the market is dead.

So with both the daily and the weekly charts confirming a lack of trend, I would suggest you should take a rest and keep away from this market for a while. But I want to bring your attention to an interesting development which is the daily Bollinger Band has already started to squeeze. If you have been trading this market, you would know this little devil is up to something big soon. So, my advice to you to keep away for this time is certainly not asking you to go to sleep. You should monitor it more intensely.