FKLI - The Market That Refuse To "Die" Before Polling Day ? -4/29/2013

 
I did not do any new trade last week except trade the intraday chart. Price went on and did another new high but since the Stochastic is already inside the overbought zone , the bulls are not convincing at all. But if you insist of going in aain, I would suggest buy when price breaks last Friday's high. But with that, you definitely keep a very tight stop on the position.
The DMI remains positive and the 2 lines are spreading outward again which can interpreted as the bulls regaining an upper hand over the bears. The MACD stays negative but it is trying to hook up and we may see a positive crossover by the coming week. But I am paying more attention to the Stochastic as the ADX went flat again at 12's.
Arguably I would say there is a double tops in place with the MACD fails to rise to a higher peak. Again we may be seeing another bearish divergence in formation.
 
The weekly chart is still pretty for the bulls as MACD, DMI and the Stochastic are all positive and rising. Price is above the top band. All is well except for the lowly ADX at 16's. But it has begun to rise, so if we can see price break above 1721, may be we can see the beginning of a new bull cycle. Otherwise it is still a "dead" market. But as I mentioned previously, as long as the bearish divergence stays intact, I would be very cautious with the buy signals which mean I would keep my stop tight.
The market is not showing real strength on the upside but neither it is dying. Without bringing in the charts, you may interpret it as the market is watching the polling day results before deciding what to do next. But is that how the big boys do things? With their large holdings, it would be too late when the results come out for them to buy or sell. With the numerous divergences in the charts, I would rather bet on the short side of the market.