FKLI - Is The Bull For Real ? - 7/16/2012

 
I took out my long position on last Thursday when price went below prior day low of 1625 and did not engage any new trade as price still maintain above the top band. With last Friday DJIA's overnight closing up 200+ points, everybody should see a gap up on the coming Monday. If you want to scalp somemore out of this market, you may buy again at1630, then keep a tight stop.

Both the daily MACD and Stochastic are hooking down, but since the ADX has begun to rise, and as long as the MACD remains positive , we may still see this market pushing up for more gain. 


 
The weekly chart's ADX finally begins to move up after weeks of playing 'dead' at 13's. This may be an early sign of the  beginning of a new trend. Though I remain cautious as it is still below the 20's level. All the 3 indicators are positive and rising and price stays above the top band, all these are pointing at a healthy bull. But I remain unconvinced until I see the bearish divergence get erased.

While EU continues to reel in its crisis, America is showing more strength in its economy. Recent statistics released is showing its property market is showing surprising strength. Another important development is that news finally coming out in this part of world that many US corporations are packing up leaving China and going back to America. This is not too good a news for Malaysia as if China goes for a hard landing, it will no doubt affect us.