KCPO:- Into the No Man Land -11/15/2010

 
I would strongly suggest taking profit off the table now. The ADX which is above both the D+ and D- has now started to fall. A signal confirming the end of the prior bull trend. As I mentioned last:- prices are getting too far away from the upper band and the MACD's gap with its moving average are getting too big. This means the market is getting overextended and the rubber band effect will snap it back to the band.

KCPO has not flash any sell signal yet. Watch out for a closing going below the upper Bollinger Band or the Stochastic crossing down the 80's signal line. Since the chart does not have any bearish divergence, so you should treat this as a correction. 

 

The weekly chart remains as bullish as ever. Both the MACD and ADX have not shown any sign of weakness. The only item needs to be cautious is prices have been getting too far from the upper band. So you watch out for those rubber band effect that snap it back.

The global market seems to be entering into another new round of great volatility. The G-20 communique may say they agree to avoid a global currency war. Bu knowing politicians ( a Chinese survey once found prostitutes command more respect  than them) , they always say something and do another. Many of my FX charts are telling me exactly that - a global currency war may has already started and you should keep an eagle eye on how that is going to affect the KCPO and Malaysian equities market.