FCPO - Another New Sell Signal Flashed - 3/24/2014

I took out my shorts position when price went back up and closed above the bottom band.  I did not engage any new buy as I did not get any confirmation from the Stochastic. Instead price went back below the bottom band again on last Friday which I engaged another new sell position. An initial stop should be placed above 2786 which is its recent high. After which if price continues to drop, a new stop should be placed at above the bottom band. If price breaks below 2729, I may consider adding more positions to the shorts.

The Stochastic and MACD continue to fall. The DMI is equilibrium at 23's. If it turns negative in the coming week, then it would offer the final sell signal. The ADX continues to fall which has been confirming the end of the prior trend.

 
The weekly chart may be slowly turning in favor for the bear. Price has closed below the top band with the Stochastic turning negative though it remains within the overbought zone. I take note that the Stochastic has already formed a minor bearish divergence which MAY bring forth some strong selling. But at this time with the contradicting indicators , I would call this a range bound market, especially the MACD and DMI remain positive and the ADX continuing to rise. The ADX is telling us the prior trend remains intact.

The daily chart has just flashed another new sell signal as the weekly chart may get one soon. I would still address the current cycle as a retracement. The MACD is above its zero signal line and the weekly ADX is still rising and the monthly chart is still good, so I cannot say the bull cycle is dead yet. But if when a market retraces a few hundred points , I certainly cannot play the "buy and hold " or the "hold and see what happens next" game. Unlike most of those experts who now turned into super bulls who usually are playing with their company's or clients' money, I am trading with my own hard earned money. I just cannot afford to get liberal with my capital.