FKLI - Trade small and stay cautious - 9/11/09

Last week's shorts were not profitable as prices hit the lower Bollinger Band and went back up and took out my stop at 1264. Now that the Stochastic has crossed up again and price closes above the upper Bollinger Band, I have engaged some new long positions, but I would remain cautious on this trade as the MACD still has not crossed up. On top of that the ADX is still falling which could be telling us this may be one of those counter-trend minor moves. I would keep a stop at 1262.


The weekly chart's candlestick opened below the upper Bollinger Band but managed to closed back up above. The Stochastic remains above the 80's zone. The MACD is showing more losses in momentum as the MACD is getting tighter to its moving average. But it still remain positive.

Summary:- I would take any new trades when the daily signals flashes as long as the ADX remains above 20's. But I would NOT engage a large positions as the weekly chart has already begun to weaken (tightening MACD and prices testing BBand supports ) and the daily charts has not closed above its prior high. I am also beginning to get uncomfortable with the Dow Jones , other major stock markets and commodities. But then I think KLSE may not 'die" yet as there are still many of those penny stocks/BS stocks (You know who they are and there are plenty of them in KLSE) that are waiting for their turns to roar or have just begun to move. I mean , whoever the big players are, they certainly would NOT want to dampen your interests in the market at this time, YET.