CPO - More flip flop - 28/9/09

Last week I wrote that I was not too convinced on the buy side of the signal because the MACD has not turned positive yet. On last Thursday, the market again kicked out our prior long positions when it went below 2135. But then I would not have engage any new shorts because the Stochastic was still rising. On Friday, prices again went above the lower Bollinger Band which would had us re-engaged new long positions. I think this time, we may have a better chance to make some money from the long positions as the MACD has finally turned back up, though it still has NOT turned positive, but it looks more promising than the last signal. I would add a little more position when if the Stochastic crosses up its 50 signal line or price goes above its previous high of 2210. Though I am NOT too bullish about this move as the D- is still above the D+. With the ADX flat, I think this could be just another sideway situation.


The weekly chart stays technically bearish as both the Stochastic and MACD stay negative. You should take note that the MACD has now crossed below its zero signal line which is even more bearish . But price is still holding above the lower Bollinger Band and the ADX maintains below 20's and flat, this market will not see any new trend yet. If by next Friday's closing can go below 2085, then maybe a new directional move would be in.

So the game plan for the coming week would be play with short term long positions in small quantity. Keep tight stop at 2110.