FKLI -  Don't Believe In "We're Strong" and "This Time It Is Different" Statements - 12/15/2014

 

The market continued to go lower at the beginning of last week but spiked up above the bottom band on Wednesday which stopped out my shorts positions. But I re-engaged new sell position on the following day when price came back down below the bottom band. Though the Stochastic is now inside the "oversold" region, I would still continue to watch the MACD indicator as the ADX has resumed rising again. It has now reached the 29's level. The DMI stays negative with the D- rising again and the D+ stays below 20's, so this is still a bear dominated market. I am placing stop at above the bottom band.

At the weekly chart, price stays below the bottom band. The MACD stays negative and it is below its zero signal line, this confirms the current bear cycle. The Stochastic and DMI are  also negative. The ADX continues to rise and it is now above the 20's level, so this mean the strong bearish trend is going smoothly. But the D- is at its extremity, so I expect some form of retracement or consolidation coming soon. But overall there is nothing to say that the market is safe from getting more bear savage attacks.

The crude oil and the Ringgit continue to get crushed over the past week, and yet we continue to get "reassurances" talks from politicians, senior bureaucrats and the usual gang of "experts' who claim that "we are strong" and "this time is different from 1997". The most idiotic statement most probably came from a foreign bank's "expert" who thinks the crude oil collapse may actually be good for our nation's fiscal well being. But people like me who looks at charts for what is to come next, I would say I feel nothing but pities and sorrows for our nation.