KCPO - A rebound but is it really turning ? 8/2/2010

The market hit my stop on last Wednesday and continue to go up. Now we the Stochastic crossing up its 50's signal line which is flashing a new buy signal. The MACD has also crossed up and moving toward its zero line. Price has closed up above the middle Bollinger Band which is a good good signal. But the D- continues to fall but it still has not crossed down the D+. The ADX has been falling, so I would think just go along with the new buy signal but do not commit a large position as the trend is not clear yet.

The weekly chart has turned murky on its direction as while the Stochastic is still falling,  but the MACD manages to stay positive. So we have here a classical case of 2 indicators do not agree with each other which is telling us the market may be in a trendless mode. The ADX is still below 20's and stays flat which is another confirmation that the market may be in a sideway mode again. So I would suggest adopt a short term trading until some new signals come forth.

Place stops at 2465. I am keeping a tighter stop as there is little trend in order to protect profit.