KCPO:-  Correction Begins - 12/20/2010

 
As I wrote last week, since the ADX has been flat, I will keep my stop tight and  watch the Stochastic for possible new sell signal. Last Thursday price went below the upper Bollinger Band and additional confirmations from the Stochastic going below the 80's and MACD went negative came the following day. I sold this market and now place stop at 3646. I am keeping an eye on the fast closing gap between the D+ and D-, once the D+ goes below the D-, that would add to another sell signal.

Since the ADX is falling, I would place more emphasis on the Stochastic for the current trading signals.

The weekly chart has not flashed any sell signal except the black engulfing candlestick. The MACD is still rising with a supporting ADX. The Stochastic remains above the 80's zone. So at this time, I would call what is happening at the daily chart a mere correction first, that is unless thing get deteriorated further.