Tuesday, February 28, 2006

End of every month-centipede pattern=A rolling market gather's no profits

20060228 The FKLI trading community needs to reexamine why it takes 1 1/2 weeks to rollover 20K contract open positions. Maybe they should cooperate with each other (for the sake of the industry growth) to finish the unproductive rolls in 1 or at most 2 days. Posted by Picasa

Monday, February 27, 2006

20060227 3:45 pm. After hours of grind, finally reaches the target (albeit small) from the upper trendline break.(925) Posted by Picasa

Friday, February 24, 2006

20060224 10:35 am. Tough going fo rthe breakout to even reach 928.50 target. Posted by Picasa

Thursday, February 23, 2006

20060223 11:35 am. Coming up to test upper trendlines, might be potential for break out. Let's see what happens, time will tell. Posted by Picasa

20060222 8:35 am. FKLI spot month 30 min chart shows a triangle pattern, indicating breakout could come either side. Posted by Picasa

Tuesday, February 21, 2006

20060221 4:37 pm. Divergence trade in play. 1) Indicator/price divergence 2) Downtrendline break (which had to be adjusted) 3) Final resistance line break. Posted by Picasa

20060221 9:20 am. Leong Hup Holdings (LHH) along with other recent high flyers are now tanking. We have seen all this before for example names like Repco, Hwatai, Gadang, Abric, Tanamas, Gensoil, LIPO, the list goes on and on. These are 'caveat emptor' or let the buyer beware stocks, the perfect setup of how the system sytematically takes money away from the unwary traders. And it doesn't just happen in Malaysia, look at TASR or GOOG as recent examples in the US stock markets. One clue on how to recognise that the end is nigh is to look for divergence. Posted by Picasa

Monday, February 20, 2006

20060220 30 minute chart shows downtrend, but the move is slow, which gives clues to future movement potential. Posted by Picasa

20060220 9:20 am. The turtle soup reversal identified on 15 Feb, took a while to play out. Posted by Picasa

Thursday, February 16, 2006

20060216 Likewise Telekom Malaysia Berhad, another heavyweight is approaching its weekly trendline resistance. Break? Confirms the longer term uptrend in the KLCI. Posted by Picasa

20060216 Tenaga Nasional Bhd, one of the heavyweights in the KLCI, shows it is on a weekly trendly breakout. Posted by Picasa

Wednesday, February 15, 2006

20060215 An example of a Turtle Soup reversal pattern occured in FKLI today.

20060215 9:34 am. Since the touch of the 8 period ema and the subsequent buy signal, 6 sessions later we see a nice move up. Posted by Picasa

Friday, February 10, 2006

20060210 Longs taken from the 8 ema support would hve been a good swing trade by now. Posted by Picasa

Thursday, February 09, 2006

20060209 A bit of divergence and how reversals or non reversals can give clues to when to enter on retracement. Posted by Picasa

Wednesday, February 08, 2006

  • 2060208 We took some long positions at 920, the 8 ema support. What were the factors that contribute to this decision?

    Trend is up, Higher highs and lows.
    Prices were above all moving averages: Trend up.
    MACD is bullish.

    In trading, the objective is to find the low risk high probability entry, with return commensurate with the risk.
 Posted by Picasa

Tuesday, February 07, 2006

3 Traps not t fall into trading futures

I attended a dinner where an experienced trader I talked to was alluding to 3 traps most new and inexperienced traders fall into when trading futures that invariably cause them to blow up and sustain losses that cut short their trading careers:

  1. Not believing the market price action
  2. Fighting the market (trend)
  3. Saying things like "The market is too high (low) . Its time to sell (buy). There is no reason for the market to go higher/lower.
Things that will help inexperienced traders in futures trading. Hope it helps.

Monday, February 06, 2006

20060206 Update on AMMB Holdings Bhd Posted by Picasa

20060206 3:25 pm. The bands are another technique to enter a strongly trending market, like the current one. These are higher risk levels, but are earlier and more aggressive entries to take advantage of the trend. Bands are simply the 5 period ema of the high and lows. Posted by Picasa

20060206 Lunch session break. For those who may be bulish on the Bursa stocks, what would be a good low risk high probability area to enter long positions in the FKLI? On the daily chart the area would be the the rectangular area of support on the chart above. This would represent the area where the impulse traders, who are correct on market direction (UP) but entered at the wrong price, most nptably those who buy heavily on breakout of the FKLI, are likely to place their stop orders. In an uptrend, the best place to enter would be on retracement. Posted by Picasa

20060206 11:20 am. The cash KLCI Andrew's pitchfork is half complete. Next target is the upper prong trendline. Posted by Picasa

Friday, February 03, 2006

20060203 4:16 pm. KLCI cash has reached the middle prong of the Andrew's pitchfork, indicates the first place to take profits on long fkli positions. Posted by Picasa

20060203 3:30 pm. Kuala Lumpur Kepong Bhd (KLK) another big plantation stock and a foreign institutional favourite, shows where the money is flowing into. Posted by Picasa

20060203 3:30 pm. Big plantation stocks IOICORP leads the Bursamalaysia stock market. An indication of the theme ahead? Posted by Picasa

20060203 3:05 pm. Tenaga Bhd, a giant with big weightage in the CI, breaking out of the triangle pattern, targeting 11.80-12. Posted by Picasa

20060203 3:02 pm. Sime Darby Bhd buiding up energy in a triangle pattern that looks like it could break to the upside, at the current moment in time. Posted by Picasa

20060203 2:41 pm. Genting hits new high today, following from the breakout level RM21.50 we identified 5 weeks ago. Posted by Picasa

"There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time."J Livermore Manchester City FCl Crude Palm Oil



From Dragons and Bulls by Stanley Kroll
Intro and Foreword
The Importance of an Investment Strategy
5 The Art of War, by Sun Tau (circa 506 BC) and The Art of Trading Success (circa AD 1994)
That's the way you want to bet/a>
Long-term v Short term trading
Technicals v Fundamentals
Perception v Reality
Part 1: Winners and Losers
Part 2: Winners and Losers
Sun Tzu: The Art of War
Those who tell don't know, those who know don't tell
Why there is no such thing as a "bad market"
The Secret to Trading Success
The Experts, do they know better?
Risk control and money management
Good advice
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system