Friday, June 30, 2006

20060630 2:59 pm. Sometimes the simplest trendline break and price action works best.

Bursamalaysia Indices malaise-A sign of relative weakness?

20060630 2:15 pm The Bursamalaysia indices, whether it be the KLCI of rhe FTSE indices all show a relative underperformance compared to other stock indices in the region. This is a characteristic which is symptomatic of the Malaysian share market, a state of malaise that the country should be ashamed of, and measures need to address this. However it does provide a clue as to the relative strength of the local bourse vis a vis other markets in the region. One thing to note is that the only difference the new index series provide is the four letters "FTSE" in front of the name. For all intents and purposes, they convey the same information, then the question remains: Why have new indices that give essentially the same information anyway? Posted by Picasa

20060630 10;20 am. With the 'path of least resistance' on upside, FKLI gaps to the confluence of long term moving avg. Incidently yesterday, the FOMC raised rates to 5.25%. Posted by Picasa

Thursday, June 29, 2006

20060628 The ellipse shows the buy zone where the FKLI 30 min chart price action went down to test the equivalent of the 21 ema on the daily chart. Posted by Picasa

Wednesday, June 28, 2006

20060628 With the 'path of least resistance' to upside, march upwards of FKLI continues. Posted by Picasa

Tuesday, June 27, 2006

On Monday 26 th June 2006, Bursamalaysia launched its FTSE series of indices. Will be interesting to see what sort of contract specs come out of the FBM30 futures expected to be launched by the exchange. Posted by Picasa

20060627 2:57 pm. Finally we get the KLCI to pull back to the trendline. Posted by Picasa

20060627 Lunch session break. The FKLI June contract continues up on "path of least resistance". Posted by Picasa

Monday, June 26, 2006

FTSE Bursamalaysia Indices start trade today

Chart of the FTSE 30 Index v KLCI today

20060626 10;20 am. FKLI reaches 21 ema resistance. Since the stochastics and macd indicates path of least resistance is on upside, may be good to long on retrace to the 8 ema. Posted by Picasa

Thursday, June 22, 2006

20060622 4:10 pm. We would look to take longs when FKLI comes back to retest the daily 8 exponential moving average support. Posted by Picasa

20060622 9:11 am. FKLI broke out yesterday from triangle. Cash KLCI targeting back to the trendline breakdown of 2 weeks ago. Posted by Picasa

Friday, June 16, 2006

20060616 Closing FKLI daily chart shows stochastics giving a heads up.

20060616 3:50 pm. FKLI bounce came off the 38.2% retracement Fib level for a nice trade long. Posted by Picasa

20060616 Cash KLCI a way away from the broken trendline. Can it get back up there for the retest? Posted by Picasa

20060616 10:05 am. FKLI breaks out of our down trend channel. Now pulls back. Maybe can look for retracement levels to go long. Posted by Picasa

Thursday, June 15, 2006

20060615 11:20 am. FKLI 60 min at upper channel line. Either breaks above or continues downtrend. If our scenario of the cash index going back up to retest the broken trendline eventuates, then favour the former, else the downtrend is set to continue. Posted by Picasa

Wednesday, June 14, 2006

20060614 3:52 pm. Cash index broke long term trend line from yesterday. Looks like could retrace back to that trendline. FKLI has rebounded from low of 872 this morning to 881 currently, pointing to high probability of the cash index coming back up to test the trendline.

There is something to be said for the current market turmoil, which many commentators, analysts and experts attribute to inflation fears and interest rate fears. This is all crap, there is a positive correlation between interest rates and the stock indices. In 2002, during the height of the 'tech wreck', the S&P500 index was at 880 points, the Fed Funds rate was at 1.25%. Right now 2006, the S&P500 wis currently 1235, and Fed Funds rate is 5.00%. Anybody with any rational thought will see that as interest rates went up, the S&P500 stock index went up.Posted by Picasa

Tuesday, June 13, 2006

20060612 Cash KLCI testing and goes through the uptrend line. Could be an important technical point. Posted by Picasa

Monday, June 12, 2006

20060612 4:32 pm. FKLI seems to have flattened out into sideways consolidation. H&S pattern failed to eventuate, as has the Wolffe wave. World Cup doldrums has hit the market. Posted by Picasa

Friday, June 09, 2006

20060609 Close: 30 min chart of FKLI shows potential H&S reversal pattern, but FKLI price has to confirm by going through the neckline. Posted by Picasa

20060609 30 min FKLi chart, 2 touches of Bollinger bands indicates the reversal, along with Wolffe wave support. Posted by Picasa

20060609 10:24 am. A pattern called a Wolffe wave, 5 waves complete, should be bouncing off support and headed for the upper trend line. Posted by Picasa

Thursday, June 08, 2006

20060608 FKLI since the break out of the moving average confluence finally reaches downwards. Slow market, to take 3+ days to move down to current levels. Posted by Picasa

Tuesday, June 06, 2006

20060606 FKLI into the close, holding below the 100 mov avg and RSI is below 50, momentum is down, but opportunity to look for support level to consider longs. 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