FKLI - The Bulls Are Not Convincing - 6/23/2014

 
I closed off my earlier trade when price went below the prior day low. A new sell signal came on last Tuesday when price went below the top band with the Stochastic gone negative. But the signal did not make good when price did not go below the signal day low. Instead a new buy signal came again on last Friday when price went back up above the top band with a positive Stochastic. By following my trading system, I would buy again on the coming Monday when if price goes above the signal day high of 1887.

The MACD has gone positive again. The DMI remains positive but the ADX has been rising a bit from 10's to 11's but has stayed flat for the past 2 days. With the lowly and flat ADX, I would not get too excited over the current move. 


 
The weekly chart is still a bit biased towards the buyer. The MACD and DMI are positive, but the Stochastic stays negative and is still falling. Since it has been in the overbought zone, this is something that I would keep an keen eye on. The ADX remains flat at 16's, so the market should not go too far. The D- has been falling and it is below the 20's but the D+ has also been falling, so I read this as both buyers and sellers are NOT too in love with this market.

In the recent weeks, there have been some strange talks about some hot money is coming back. I do not believe it. From the numerous bearish divergences formed , I remain firmly in the bear camp. Of course it does not mean the market will necessarily "die" tomorrow, but I will pay more attention to the sell signals over the buys.