FKLI - Maybe Market Getting Ready For Another Push ?- 7/15/2013

 

The market spiked up on last Thursday but was unable to retain thEe momentum. The following day just saw a 1.5 point improvement. The Stochastic is still falling while the MACD is rising. A contradicting indicators scenario means the market is still caught in a listless situation. But as price is now above the top band and the DMI stays positive. I would stand beside the bull for the moment. I also notice the ADX has finally begun to rise,l though it is still at the low 16's level.

I would buy in new position when if the Stochastic turns positive again and use the top band and use the top band minus 2 points as stop.

 

The weekly chart reflects what is happening at the daily chart. The Stochastic is negative but the MACD is still positive. Price maintains above the top band, with the DMI stays positive. So the bulls seem to have more fans than the bears. With the ADX beginning to rise, the market may be getting ready for another push.

Nothing much too extraordinary has happened during the past week:- the weaker members of EU continues to cough out bad news which has became a "normal" weekly practice. It was Portugal's turn now. Nothing actually surprises me as I am quite aware even bigger member nations like Italy and France may eventually be the next candidate of crisis. Another piece of "surprise" that came out during last weekend which the local media has not reported yet is that America has its biggest budget surpluses, their highest in 5 years  . No surprise here as I have been reading their fast declining deficits for the past one year and in fact , some of the hedge fund people has already predicted America will go back to surpluses soon for the next decade or so. America's economy has been gaining strength which was no surprise to me as I know of their oil reserves and production as least for 2 years now. Now already there are jokes going around in the net calling America as "Saudi America". So for those who have been hyping half truths about America going to wars over oil may find themselves out of lies from now onwards. It is exactly like the old Chinese saying that Feng Shui turns like a wheel, maybe it is about time that America returning to claim the global throne ?