CPO - 23/2/09

I was prudent when I said I remain cautious even though there were new buy signals flashed last week. I put in some qualifiers before we really get excited. But all those qualifiers were not met - first the MACD failed to take out its prior peak and price failed to take out its prior high. And price went down below 1905 and that should taken out your long positions.

At present both the MACD and the Stochastic have crossed down and price crossed below the Bollinger Band top, so you would have entered into some shorts positions. Since the MACD is crossing down near its zero signal line and the Stochastic may cross down its 50 signal line, both may bring out more selling and add weight to this little bear . Since the D+ is still holding above the D- and the daily ADX is flat, so we will trade this market with a short term view first until something bigger develops.

The weekly chart Stochastic has begun to turn down and with price closes below the Bollinger Band top again, the prior little bull is losing ground again. With the weekly ADX continues to fall and the daily ADX flat, we would not too surprise that this market is entering into another new round of sideway consolidation. We will have to wait for 1-2 weeks to tell us where this market is next going.