KCPO - It Is A Dead Market - 7/23/2012

 
Last Monday price gapped up and tested the top band, but I did not do anything as the Stochastic did not confirm the move. Instead I sold again when price went below Monday's low. This trade was short-lived as I closed it on Thursday when price went back above the bottom band. A scalping trade no doubt but one still make approximately 80 points.

Again I did not do any new long trade because though price went back above the bottom band but the Stochastic has failed to confirm. Please pay attention to the ADX which is now below 20's which is a classic confirmation that this market has gone side way. The seemingly wiggling DMI also adding weight to this view. So I would suggest that you stay out of the market for a while before a new trend emerges. Since the MACD and Stochastic have gone negative, I would suggest allying yourself with the bears will be of more prudence.

 

The weekly chart remains same as last week as the initial bull is still at the loss of what next to do. The Stochastic is positive and  rising but MACD is negative and falling. The ADX stays flat at below 20's. All these 3 are pointing to a listless market.

The fact that KCPO failed to rally upward even though most of the grains markets in US have been shooting up due to the drought
seems to pointing to a possible collapse in this market. The 3,000 level remains the vital support, and if price fails to hold above this level by the end of the month will probably indicate the return of the bears to take a grip hold on this market.