FKLI -  Another Round of "What Me Worry?" Rebound ? - 6/18/2012

Last week was still a week of directionless prices jumping around with a daily gaps. The indicators are contradicting with a positive MACD and a negative Stochastic. The ADX has begun to flatten with DMI staying positive and price has closed above the upper band on last Friday, I wonder could we be seeing a short term reversal soon ? Of course nobody can tell for sure. If I would to buy next, I would use a very tight stop to protect my position or to keep loss small. Applying prior day low minus 1 point would be the preferred stop method. But honestly I much prefer to go play some Marvin Gaye's records  and sit this out.





The weekly chart is almost like that of last week's. Contradicting indicators as MACD stays negative but Stochastic has turned positive. Prices still caught inside the bands; DMI is still wiggling and ADX has again started to fall. Latest it is at 13's. Of course my warning is still intact:- as the band continues to squeeze ,so stay alert for a massive violent move soon !


Meanwhile the dreaded EU "Black Death" disease continues to spread from one member to another. Cyprus should be gone by next week. But it is such a smallish nation, most probably nobody really bother about them. Italy is getting more shaky and she is the one to watch out for. Among all these dooms and gloom in EU, I think our local "experts" may have failed to spend some time to think on its consequences on Malaysia and ASEAN. I am getting increasing concerned  that Malaysia may get hit as like in 1998's. Already Indonesia and India are showing early signs of crisis and our red hot property market seems to remind me of those days too. I am not good in the fundamentals but looking at the Ringgit chart, these days I tend to go to temple and pray for protection more.