FCPO:- Market Getting Stuck In Mud Again - 8/22/2011

I thought we were getting a new bull move last Monday but it quickly fizzled out the next few days. Place stop at 2986 just in case the market turns around again.

Though both the Stochastic and MACD are still positive, but both seem to be turning down. But as prices stay within the upper and lower Bollinger Band and ADX stays flat, I would still read this as a sideway market. But as the both the daily and weekly chart has already formed a bullish divergence, I remain cautiously bullish about this market. But as said last week, market's divergence may remain so for a long time before it really acting out the content, so I would still trade the market as any new signal appears. But the trick would be trade the shorts in your normal number of contracts but bet heavier on the long side.

 

The weekly chart remains almost the same as the previous week's. The Stochastic did not manage to climb above its 20's signal line but instead has crossed down again. The MACD remains negative and falling. Prices are still hanging around below the lower Bollinger Band. All these are telling us the bears are still in control. But as the ADX stays flat, there is no trend in the market either

The past week the international FX and commodities market also seem big volatility but yet see no new directional moves. We may continue to witness to such volatility for weeks to come before the market make up its mind of what it wants to do next. Meanwhile the local futures margins have increased substantially, so maybe we should go watch movies more ? But even having said that, I believe we may be at the beginning of a great market move that there are great money to be made. Ignore at your own perils.