CPO - 6/7/09 - Bears are taking over

I was not too bullish on the price crossed up the lower BBand and the Stochastic crossing up above its 20 signal line last week as the MACD and DMI failed to compliment their buy signal. I suggested a tight stop should be placed in case the signal turns out to be a fake one. And by last Monday, market action already forced out our buy positions. As price again went below the lower BBand , I turned back again to initial new shorts position.

The new short position is confirmed by a negative MACD that stays below its zero signal line; a negative Stocastic; an expanding D- over the D+ and best of all - an again rising ADX which is confirming the selling power is back in business. So stay short and place your stop at 2225.




More damages are done at the weekly chart as the MACD finally crossed down while the falling Stochastic is fast approaching its 50 signal line. Both of these are major selling signal. Last week the D- crossed the falling D+ which I told you to apply Wells Wilder's extreme rule which is to sell if this week price goes below last week (signal week) lowest low. This signal was confirmed. And if price closes below the lower BBand of 2015, then the bears would have the complete control of this market.