KCPO - It Is Sell Again But Keep Trading Very Short Term - 1/30/2012

 

The market went for another sell signal  as the Stochastic crosses down again and price went below the lower band. If you had taken this signal, I would advise tighter stop should be placed as the ADX is still falling. It is now at 14's. With this kind of level, I would keep all trades very short term, taking out profit as it goes along rather than waiting for indicators to reverse. This is to say, if you think a 50 points profit is good for you, then just take it. Unless I see the D- goes above its 30's level, I would just keep on this profit taking approach.

Now that all the 3 indicators are in a negative mode, that should at least put some comfort to your sell position. As there is no major bearish pattern or formation found at the daily chart, so I would just trade any new directions and would not get too bearish/bullish inclined.
 

The weekly chart Stochastic seems to be turning around. A negative cross down would be taken as a sell signal as price has already gone below the upper band. The ADX continues to fall , it is now at 16's.  This is also complimenting the daily chart's lack of trend.

Just like the FKLI, maybe the market is waiting for the coming holidays to pass over before taking a new direction.