FKLI 23/3/09 - Is the market celebrating the new PM ?

Yes sir, I was wrong on this market last week when I expected more intense selling to emerge. But the market just hanged around for a while before getting back up again. You would had got stopped out at 857 (never get into any trade without determining where to place your stops). The Stochastic has crossed up above its 20 signal line while the MACD has also hooked up positively. Please take note the daily ADX has turned flat which is effectively telling us the prior bear trend has ceased , at least for the time being.

With prices crossed above the lower Bollinger Band and the Stochastic crossing up, I would placed in some long contracts and place my stops at 845. But I am not yet getting too bullish about this market especially the D+ is still below the D-..I would add on more positions when prices manage to close above the upper Bollinger Band which is also acting as its down sloping trend line resistance.

The weekly chart is displaying a picture of contradiction - the Stochastic is still negative and continue to fall while the MACD stays positive. This contradictions is also confirmed by the squeezing Bollinger Band which is foretelling us a major move may be coming. But with prices are also able to close back above the lower Bollinger Band, I think we can temporarily ignore the bear for the time being. Of course I am also doing nothing significant at this stage. I will be watching 902 for additional bullish signal.

The market may be acting up following the Dow Jones' current up move or our next PM's powerful friends may want to push up the market to compliment his impending arrival ?