CPO - 13/4/09

Since the ADX continues to rise and the so is the MACD, so I have no reason to think that the current bull moves will be over soon. Though I will maintain my stops at 2169 to protect the profit. As in the case of Kloffe, the Stochastic has gone into 90's area but since the ADX has now risen to 31, so I would look at the MACD rather than the Stochastic oscillator.

The weekly MACD has now got nearer to its own zero signal line which is getting increasing bullish. Once crossing this line , it shall constitute as another new buy signal.

The next upside target would be 2600.

FKLI - 13/4/09 - More explosive moves to follow ?

This market has been defying all the doom sayers and continue to rise further, again proving to us that fundamental analysis fails miserable in reading and predicting the market. The daily ADX has now risen to 25 which is confirming to us there is a trend now in this market and since it is still rising, that we can say this trend is still intact. The daily MACD is staying above the zero signal line which effectively confirming the bull. Though the Stochastic is now reading 92's which some people would call it "overbought", but I would not pay too much attention to this indicator now as the ADX is in control and instead we should pay closer attention to the MACD. Oscillator indicators like Stochastic, MFI, RSI,W% etc can remain 'overbought' for weeks and months and prices will just keep going higher and higher.

The weekly chart is also confirming the current bullish mode. Price has closed above the top Bollinger Band and did higher than the previous week's high. Both the MACD and the Stochastic remain positive and continue to rise. When both indicators are in "agreement' , usually the trend is more reliable. Since the Stochastic has crossed over its own 50 signal line , we shall take that as a new buy signal. And when the MACD crosses above its own zero signal line, that shall become the next buy signal.

As I have alerted you all that since the Bollinger Band has been squeezing for some weeks, any eventual breakout wold be of the explosive and powerful kind. I think we may just be witnessing the beginning of a big one.

I would place my stop at 915 just in case this rally fails and set my upside targets at 974, 1,084 and 1168.

塚愛 In Love With the Dead

I recently watched this HK horror/love movie which I think is quite good. Try to get a DVD and I am sure you would not be disappointed:-

In Love With the Dead

"傳說中有些人因心事未了，就算是死了仍會在人間行走一段時間，更有些人連自己死了也不知……”

This is another one of those recent Hong Kong's sleeper movies by famous horror films director Danny Pang (彭発) which is of fairly high standard but did not really make it big in the box office. It is a rather slow love / horror themed movie about inner and outer ghosts with a great twist at the end.

The movie as might be expected for a film dealing with terminal illness , “In Love With the Dead” is a pretty gloomy affair as the director plays atmosphere strike the perfect combination of eerie lighting and moody music. The story is about the leading lady is diagnosed with cancer, her loving boyfriend (Shawn Yue - Infernal Affairs 2) swears to take care of her. Inevitably, this proves to be a difficult task, not least since she soon starts acting very strangely, lurking around in their dark flat all day. Disturbed and depressed, Ming falls into the arms of attractive co-worker Fong , resulting in even more angst. Living with Ming and Wai is her younger sister Ping, who one day remarks that the poor woman looks like a ghost from the horror comics she loves reading. From then on, things take a turn for the sinister, as Ming begins to suspect that she may well be right. The ending is quite sad.

The movie also comes with a fascinating sub- theme regarding the clash between modern Western-style and traditional Chinese medicine. In one scene the leading lady follows what the "how to beat cancer" book by eating back all the yukkies stuff that she has just vomited out. According to the book, by doing that her cancer will get cured. then in another scene, she practices a kind of Qigong called Bau Chew Qong (embracing the ball) which I also learnt from my former Qigong class.

http://www.youtube.com/watch?v=PvPMITo9y_s

Pelikan

Last week a friend of mine was mentioning about this stock and today it comes out from one of my explorations. Price has closed above the moving average channels with RSI moves up above its 50 signal line while the the positive MACD continues to rise toward its own zero signal line. All these are bullish indications and confirmation.

Please note that the D+ has already crossed up above the D- yesterday, by applying Wells Wilder's extreme rule, today price has already exceed yesterday's signal day highest high, thus qualifying a buy into this stock.

For the past few days, the KLSE has been breaking higher, so there are many stocks that are going up. What makes this stock more interesting is its MACD has confirmed a bullish divergence which upon confirming a breakup, usually move in a bigger proportion than other stocks that does not register such bullish divergence. And the most wonderful of all is that a similar bullish divergence is also found in its weekly chart.

I expect this one will retrace to RM2.70 or even to RM3.25.

CPO - 6/4/09 - Breakup finally !

The breakup above its recent multi tested resistance has finally occurred with prices firmly closed above it. Both the Stochastic and the MACD are in agreement and going up. The D+ which I mentioned has also given us a confirmation by breaking up above its previous peak. The most encouraging sign is the previously flat ADX has already started to rise by cutting above the falling D- and now has reached 24. This is confirming the current trend has gotten reasonably strong.

The weekly chart has also turned clearer as closing price managed to clear above its prior range. And the previously falling ADX has stopped falling may be confirming an end of its prior range bounding. The MACD continues to get nearer to its zero signal line which should be read as increasing bullish.

But as both the daily and weekly Stochastic has gone into the overbought zone, there could be some retracement in the coming week before the upside moves continue.

We should watch 2360 as its initial upside target.

FKLI - 6/4/09 market clebrates Najib ?

Last week my stop of 878 was hit on Monday when price went to a low of 864. And the newly established shorts when prices cross below the upper Bollinger Band together with the Stochastic crossing down from the 80's level. But the new shorts was a short lived one as prices crossed up again the upper Bollinger Band on Wednesday's closing so we would have re-established a new long contract.

The Stochastic has turned positive again and the MACD has finally crossed up above its own zero signal line which is usually a more powerful bullish confirmation. But the most promising item in the current reading would be the rising ADX which has just crossed up the falling D- which is usually another powerful buy signal. But having all these bullish confirmation from the indicators, I would still prefer that we can have a daily closing of above 914 which has been its recent high and therefore has become a resistance.

The weekly chart has finally become clearer as the Stochastic has already crossed up which is complimentary to the positive and still rising MACD. And prices has already broken up above the upper Bollinger Band which could be taken as an initial buy signal. As the Bollinger Band has been tightening , this breakout could be the taken as a forerunner of a major explosive bull run. BUT as there is no bullish divergence found in this weekly chart and the MACD still remain far from its zero signal line, I think we should remain cautious at this moment and do not get carried away by the new Prime Minister and the illusions of his new regime can change our economic structure overnight.

We shall place our stop at 888 just in case the market turns back down again.

The "PROFESSIONALS" and your money

You should remember how an international audit firm helped Enron screwing everybody ? And now another of the big audit firm is getting sued. All those 'professionals' that suppose to give the investing public confidence are nothing better than Madoff. I have been wondering how come those rating agencies have not receiving similar treatments ?

Go watch Jack Neo's film "Just Follow Law" where Fann Wong went to consult a medium who demanded expensive fees for his "job". When Wong asked whether that comes with a guarantee that his trick will work. Listen how the medium answers her is a pure magic. Spoke so well on all those 'professionals":-

Reuters:- Accounting giant KPMG was hit with a billion-dollar lawsuit on Wednesday over claims its "grossly negligent audits" helped trigger the collapse of a top subprime mortgage lender at the start of the U.S. housing crisis.

New Century Financial Corp, the largest independent provider of home loans to people with poor credit, filed for bankruptcy two years ago amid mounting customer defaults.

Its failure rippled across the U.S. mortgage lending industry, sparking a string of other bankruptcies that roiled financial markets as banks booked losses on billions of dollars in mortgage-linked securities at the heart of the current global financial crisis.

The lawsuit, on behalf of a liquidating trust formed by New Century debtors, was filed against both KPMG International and its U.S. arm, KPMG LLP.

It accuses KPMG of helping cover up "catastrophic" problems at New Century -- including accounting and financial errors -- that led to its collapse.

"As New Century's auditor, KPMG failed its public watchdog duty," the suit says.

KPMG spokesman Dan Ginsburg said he had not seen the suit but issued a statement saying the company had acted "in accordance with professional standards" in its dealings with New Century.