FKLI - Our Market Joins In The American Party - 10/14/2013

 

The market has been drifting sideway for the most of the past week except came Friday when our market joined in the America's "end of deadlock party" and popped above the upper band. The Stochastic has now turned positive and rising and the MACD has also turned positive. Price managed to closed above the top band even though the Japanese Candlestick was a black body (means open is lower than close). The DMI stays positive with the D+ turning higher. This means the bull is again flexing its muscle. Though the ADX remains below the 20's level but it has begun to rise. I would buy if price can go above the signal day high of 1797. When if done, I can either place stop at the prior day low or below the top band.
Price is now closed above its recent fractal high of 1786, so I would have to read the market may be taking another round to test the upside. There is an immediate upside resistance at 1803.


 

The weekly chart is still a blur picture. The Stochastic continues to rise but the MACD remains negative though it seems to be trying to cross up. Prices stay sideway and remain below the top band. The ADX continues its fall and it is now below its 20's level. So I would still call this market as listless. If price can close above the top band by the coming week, then I would start to consider this market going back to the bullish zone.
Under the America's constitution, this is the final term for Obama. So leaving his legacy with his Obamacare will make him a tough fighting man. It would be NOT likely that he will give in to the extreme right wing in the Republicans (the Tea Party folks) So the world can expect a longer confrontation this time until someone blinks. And I am doubtful it will be Obama who will blink because he knows well with his Presidential special powers, he can actually go around the Republicans on this "crisis". And the Republicans also know the longer this crisis gets, the more votes they are going to lose in the next election. So by knowing this, you should not be duped by all the market 's hypes on a US possible default because it is NOT likely to happen.