FKLI - Is Cyprus Really That Bullish To Our Market ?- 4/2/2013

 

The market opened last Monday with a shock and awe 30.5 points gain which went through the middle and top band in one go. My stop at the middle band was taken out. The price also pushed all the indicators back into positive territory at the same time. So I bought again the next day when price went above the signal day high. My stop is now place below the top band minus 1/2 points.

The ADX remains flat at 19's so I remains cautious on this trade as it may be another one of those flash in the pan trade. Once the Stochastic reaches into the overbought zone, I would advocate taking some profit whenever possible.

The weekly chart is beginning to turn more bullish biased as the Stochastic is positive and rising. The MACD and DMI have just turned positive. This means all the 3 indicators are in agreement. The only item here that is not encouraging is the ADX , as it is falling again. If I am trading the weekly chart, I would buy if price can go above this week's high of 1679.

The monthly chart remains listless as the MACD stays negative while the Stochastic is also negative but it remains above the 80's zone. The DMI is positive but the ADX is pretty dead at 12's. Price managed to close above the top band again. So we do not a clear picture here except to take note of a bearish divergence here.

If I am to talk about some fundamental logics here, then I would say I have turned extremely bearish on the latest EU-Cyprus episode. In my opinion, the Germans dominating EU socialists have just open the hell gate by legally robbing the people of their bank savings. I think the panic will soon spread to other EU banks and their money will be taken out and fly to the Americans'. So what is so bullish about the Malaysian market that FKLI is rallying again ????? If the government continue to waste our hard earned money as political giveaways and white elephants and other misadventures, I am afraid we may see what is happening in Cyprus and Greece happening here in my lifetime (I am 57 years old).  Some friends ask me:- could it the market insiders know Najib will win big in the coming election and started buying the market ? Of course I have no answer to that, but my thinking remains that as long the multiple bearish divergences stay intact in the chart, I really doubt Najib can win big.