FKLI - Market Drifting Again With Downside Bias- 10/15/2012
 

Last Thursday price finally closed below the top band with the Stochastic turning negative, so I sold on the next day when price went below the signal day low. By the coming week, the Stochastic should cross down its 80's singal line which will offer another sell signal. But I would not get too carried away by this trade yet as the ADX is still falling and it has gone to 15's while the DMI has been wiggling. These are telling us there  is no trend in this market yet. So do not be too surprise if prices whip up and down . But still system still has to be followed, putting a stop at the top band plus 1-2 points should be prudent. You should also take note that the MACD remains positive.

 

The weekly chart is as what I read last week - there is no trend in this market as the ADX is still falling . It is now fallen to 13's while the DMI is also wiggling. The Stochastic has turned positive but the MACD remains negative. A contradicting indicators and lowly ADX are all telling us that this market will drift on sideway.

The chart has been forming another new bearish divergence at the MACD. So I continue to stay on the side of the bears. Last week, a Dr. Chong from Praise The Lord Corp. (赞 美主公司 特许调查及调解人张仰荣博士) has made a brutal view on Malaysia property and financial well being publicly at a property seminar forum. He thinks Malaysia will soon suffer a fate that will be worst off than that of 1997's. Strange. Chart readings are foretelling the exact same thing.