KCPO - It Is A Dead Market -12/12/2011

This has turned into a classic case of a trendless market where the MACD is negative but the Stochastic is positive (contradicting each other) ; wiggling DMI from positive to negative and vice versa.  ADX has gone below 20's. Perfect components to such market situation. For the short trade, I would pay attention to the Stochastic's   next crossover or a price closing below the bottom band for its next change in direction. As for the long side, pay attention for a price closing of above the middle band.

 

The weekly chart is also showing a lack of trend as the Stochastic has turned negative while MACD remains positive. The DMI has been wiggling with the ADX continues to fall. Prices stay inside the band. All these readings are confirming a lack of trend in the market.

We have both the daily and weekly chart confirming a trend less market. As mentioned last week, I think the players are waiting for a clearer picture coming out from the EU crisis before deciding their next course of action. When if EU is to fall into a major recession, China's exports to them will be severely affected. And China as a major buyer of the global commodities will definitely substantially decrease. Think how that would affect their prices.