CPO - turn buy on short term but watch the bigger bear - 12/10/09

This market has started to stall. I would close off my previous short positions because price has closed above the lower Bollinger Band and the Stochastic has already crossed up its 20 signal line. Both may interpreted as an initial buy signal. You should also take note that the MACD have begun to tick up though it is still not yet positive.

Since the D- is still dominating over the D+, I would remain reluctant on the buy side. So I would just take a small long positions on the Stochastic crossing up 20's and prices close above the lower Band signal. But I would only add on heavier position when I see more concrete reasons to do so. (eg. MACD turns positive, D+ above D-, Stochastic crosses above 50's etc) Meanwhile keep stop at 2040.


The weekly chart remains bearish as the Stochastic and the MACD are both negative and continues to drop. In fact the MACD has already fallen below its zero signal line which is usually a more bearish signal. Price still stay belwo the lower Bollinger Band. The only item which is confirming the current lack of trend is the flat ADX.

Summary - turn long on smallish bets on the short term but as the bigger picture is still bearish, so stay very cautious for any market turn again.