FKLI - Market Drifting Again With Downside Bias- 10/15/2012
Last Thursday price finally closed below the top band with the
Stochastic turning negative, so I sold on the next day when price went
below the signal day low. By the coming week, the Stochastic should
cross down its 80's singal line which will offer another sell signal.
But I would not get too carried away by this trade yet as the ADX is
still falling and it has gone to 15's while the DMI has been wiggling.
These are telling us there is no trend in this market yet. So do not be
too surprise if prices whip up and down . But still system still has to
be followed, putting a stop at the top band plus 1-2 points should be
prudent. You should also take note that the MACD remains positive.
The weekly chart is as what I read last week - there is no trend in this
market as the ADX is still falling . It is now fallen to 13's while the
DMI is also wiggling. The Stochastic has turned positive but the MACD
remains negative. A contradicting indicators and lowly ADX are all
telling us that this market will drift on sideway.
The chart has been forming another new bearish divergence at the MACD.
So I continue to stay on the side of the bears. Last week, a Dr. Chong
from Praise The Lord Corp. (赞 美主公司 特许调查及调解人张仰荣博士) has made a brutal view
on Malaysia property and financial well being publicly at a property
seminar forum. He thinks Malaysia will soon suffer a fate that will be
worst off than that of 1997's. Strange. Chart readings are foretelling
the exact same thing.
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