FKLI - The Bulls Running Out Of Ammunition ? - 7/30/2012

I sold the market when price went below the upper band with the Stochastic turning negative on last Monday. The MACD followed on the next day and went negative. The ADX has begun to fall which is indicating the end of the prior upmove cycle. But you should take note that it is fast dropping towards the 20's signal line. This may be also indicating that the market may be moving into another listless mode.

Place stop at band top or prior day high plus 2 points.


 
The weekly chart's Stochastic has already done a negative crossing down. This is worrisome for the bulls. As the ADX is still below its 20's area, the Stochastic matters more than the MACD. The coming week should be crucial as I am watching out for the Stochastic to cross down its 80's line and price to go below the upper band. If both these 2 conditions are met, then it would be a new sell signal for the weekly chart. And if prices are to deteriorated from here, the MACD should form a new bearish divergence from there. This will really be a bad omen for the bulls. The ADX has turned flat again, this is indicating the prior trend has stalled and may also mean that the market is going listless again.

Judging from various top BN politicians are saying these days, I often feel that they are getting humble (where formerly they always threatened) and almost like begging the people to give them "another 5 years" to serve (首相拿督斯里納吉說，國陣政府在過去3年已兌現了許多承諾，若民眾給予國陣政府多5年的時間) Am I  smelling  fears from impending change of government ? The charts are not confirming yet, but let's see.I sold the market when price went below the upper band with the Stochastic turning negative on last Monday. The MACD followed on the next day and went negative. The ADX has begun to fall which is indicating the end of the prior upmove cycle. But you should take note that it is fast dropping towards the 20's signal line. This may be also indicating that the market may be moving into another listless mode.

Place stop at band top or prior day high plus 2 points.

The weekly chart's Stochastic has already done a negative crossing down. This is worrisome for the bulls. As the ADX is still below its 20's area, the Stochastic matters more than the MACD. The coming week should be crucial as I am watching out for the Stochastic to cross down its 80's line and price to go below the upper band. If both these 2 conditions are met, then it would be a new sell signal for the weekly chart. And if prices are to deteriorated from here, the MACD should form a new bearish divergence from there. This will really be a bad omen for the bulls. The ADX has turned flat again, this is indicating the prior trend has stalled and may also mean that the market is going listless again.

Judging from various top BN politicians are saying these days, I often feel that they are getting humble (where formerly they always threatened) and almost like begging the people to give them "another 5 years" to serve (首相拿督斯里納吉說，國陣政府在過去3年已兌現了許多承諾，若民眾給予國陣政府多5年的時間) Am I  smelling  fears from impending change of government ? The charts are not confirming yet, but let's see.