Saturday, October 4, 2014

FKLI -  It Is Still A Listless Market - 10/6/2014

The market hit my stop again as price went back above the bottom band. At the same time it flashed another new buy signal as price stays above the bottom band with a confirmation from the Stochastic. But price again has not been going anywhere but basically hugging between the bottom and middle band. If one has bought in , then place stop at below the bottom band . But with the ADX falling again and it looks like it may be falling below 20's soon, I am thinking it may be another one of those whipsaw trade that will be unprofitable. But with DJIA last Friday night powerful gains, there may be a chance that our market may ride another round.

The MACD has turned positive but it is still below its zero line, so I will not get too bullish biased yet. The Stochastic has turned positive and it has continued to rise. The DMI stays negative but the gap is getting narrower which mean the sellers are quitting and buyers are starting to return. But the ADX is still falling and it may be going below the 20's soon, so I would call this a listless market.

The weekly chart's indicators continue to fall. The MACD is fast dropping to its zero signal line. If it goes below that level it would mean the bear cycle has begun. Price did not fall off dramatically but continue to hug along the bottom band.  The ADX has renewed its fall and it is now at 13's, so I would call it a listless market. 

The monthly chart has been getting more bearish as price stays below the top band for the second month. The MACD is negative and falling. The Stochastic is also negative but it is still above the 80's level. The slower reacting DMI stays positive with both the D+ and D-staying flat. The flatness means both buyers and seller have not been engaging in any major direct conflict yet. Both party is playing a wait and see game.

The big picture remains extreme bearish but the short immediate term seems to suggest another round of upward move. But overall it is still a sideway market for the time being. Either you stay aside until a more convincing signal comes forth or you can like me, just trade every signal but you have to be prepared for getting whipped. Of course never forget placing the stops.

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