FKLI - Market Is Like Jumping Beans Now  But Beware Of What Is Across The Horizon -6/11/2012

 
Last Monday price collapsed below the middle band , but yet the Stochastic failed to confirm and remain positive. So I did not enter any new short trade. Then price went back up above the middle band the following day, but this time the Stochastic has turned negative. Next few days is just a repeat of similar setups when prices started gaping up and down and also going above and below the upper band while the Stochastic remained negative.

I also took notice that the ADX has now fallen below 20's. With prices swinging wild like Tarzan and the low ADX. Together with a conflicting indicators where MACD is positive and Stochastic negative, these are a classic sign that the market is once again caught in a listless mode.

I have drawn 2 horizontal lines in the chart marking out its recent range. Until I see price movement beyond these 2 levels, I would avoid engaging new trade. But I must warn you about a double tops that is already formed.
 

 
The weekly chart is also confirm the lack of trend in the daily chart. Its ADX has gone flat for the past 2 week at a lowly 14's. The negative DMI looks like it is beginning to wiggle like a worm. All these confirm the market is listless. Prices continue to be caught inside the low and high band while the band continues to tighten. This is another sign that prices movement lack trend. And when the bands get tighten, I am keep my eyes wide and ears erected looking forward for explosive action down the road.

Though the tightening band is warning me of something explosive is coming our way soon, I cannot foretell which direction will the explosion be. But looking at the PIIGs crisis, I can only "advise" you that:- 1) do NOT believe the EU governments can resolve the crisis as they lack the political wills and their money will run tight eventually 2) someone was telling me that Spain just could NOT fall because they are "big". Let me tell you this:- Spain would be NOT be the end chapter , wait until you hear from Italy which is even "BIGGER". And if the crisis does not stop there, then you would see the real "shock and awe" (I just love these George W. Bush's famous words) meltdown from France. I know left wingers will not like what I am going to say next, but it looks more like the world has to run back to America for leadership and help. So much for the experts' constant badmouthing America's demising, but it looks increasing  like the US Dollar will soon become the Master Of Universe again.