KCPO:- Watch This Market ! - 9/5/2011

 

I have been feeling bullish about this market for a while as the presence of the bullish divergence and its "dragging on" scenario. As the Stochastic has recently gone above its 50's signal line , I am getting increasing thrilled about a possible prospect of a solid bull run. But though the MACD has been rising too, but it is still below its zero signal line and with price stays below the top Bollinger Band and DMI is still negative, I think we may still have to wait for a while for the bull to go raging.

I am also bothered with the ADX which is now falling. I think my last week's reading that this market may got stuck in a mud still stands. I have drawn a horizontal line at the chart to mark out its top boundary, I would need to see a solid break up above that level in order to have a better footing to do the next rally.

 

At least the weekly chart may be telling us the prior bearish trend may be over as the ADX is now above the D- and also has gone flat. Both indicating the sellers are out of steam. The MACD stays negative but seems to be turning around. The Stochastic is turning beautiful as it is about to form a mild bullish divergence. I would like to see it crosses up above its 20's signal line. This is very important as price has already closed above the lower Bollinger Band which is flashing an uncomplimented initial buy signal.

I remain convicted that this market is getting ready for a solid bull move soon. So maybe you should forget about the stock market and start move your money here ? I often feel sorry for the average Malaysian "investors" as they seem to only know of buying stocks which is a one way traffic (we can only long and not short) and over the years, they continue to get hurt by the ill advised stock's "fundamentals". (think of those supposedly fundamentally "sound" stocks that eventually got delisted - I think one recently IPO-ed stock is about the follow the same path soon) While in the futures markets, the world is in our hand and we can piggy backed demi gods like George Soro and other hedge funds taikohs and make some decent money.