KCPO - A Technical Rebound Should Be Continued - 10/15/2012

 

 I bought the market when price went above the lower band with Stochastic crossing above 20's. The trade was working until Friday's intraday panicky retracement will hit the prior day low and closed off the trade somehow prematurely. I would re-enter a long position when price goesabove Friday's high. The market is staging a technical rebound after the strong selloff last month. Since both the Stochastic and MACD have turned positive and price above the lower band, I would stay with the bull for the time being. The flat ADX above DMI is telling us the bears have lost their claws, at least for now.

 

 The weekly chart MACD and DMI are still negative with the ADX rising strongly . Though the Stochastic is making a turnaround. But with price far from the lower band, I think the bears are still holding the court. But as I mentioned here last week, sometime when prices get away too far from the bands, they tend to want to get back near to them. So a mild technical rebound to do just that should be expected.

This time commodities do not seem to react to the QE3 as they did the last 2 times. Could it be there is something more horrendous behind all this ?