Saturday, December 30, 2006

20061229 Back online, with internet improving after the frustrations of the slow speeds caused by submarine cable damage caused by the Taiwan earthquake. On this last trading day, it is a time to reflect on a good year that has gone before. Chart 1 shows the KLCI..... what can we say but "Wow, proved all the critics of Bursamalaysia as a dog of a market wrong". The summary statistics from an article in, speaks volumes about the pickup in volume and liquidity, to serve as a springboard forward in 2007. As for stock picking, chart 3 shows the 'no brainer' trade, BURSA, which shows players' anticipation of future market activiey. What about opportunity in 2007? Well since many of the brokers/investment bank stocks have followed BURSA up, there are still laggards like AIGB, which made EPS of 19 sen in the previous 4 quarters, yet lags the market. Maybe one to consider for the 'no brainer' stock trade for 2007.

Friday, December 22, 2006

20061222 0855 am. FKLI gaps down to test lower bollinger band. Order imbalance seems to be on the sell side. maybe we can get a trend going to downside. Posted by Picasa

Wednesday, December 20, 2006

20061220 Bollinger bands constrict on FKLI, giving heads up to potential move. Posted by Picasa

Tuesday, December 19, 2006

So are fund managers on 'holidays' or are they in town to 'lock in profits'

20061219 Every year we hear talk that Christmas/New Year/December period are quiet due to fund managers taking year end holidays. Yet today they are claimed to be selling to raise money to pay dividends. Basically, no one knows for sure, not least the experts. Posted by Picasa

20061219 0515 pm. FKLI closes near lows. Posted by Picasa

20061219 03:16 pm. Pivot levels for reference in the wake of the selloff. Notable S3 comes in at 1045. Posted by Picasa

20061219 12:45 pm . Big drop in FKLI futures, following the drop of the Thai stock market, after the Thai central Bank imposed Malaysian style capital controls. Since the trend looks to be down, we would look to shorting retracements to the moving averages. Posted by Picasa

Monday, December 18, 2006

20061218 9:53 am. Pivot levels for FKLI today. 1094.50 stands out as the M4 resistance, which in the face of this morning's sell off in the FKLI, seems to be the important level today. Posted by Picasa

Friday, December 15, 2006

20061215 12:45 pm. FKLI gaps up and bangs against overhead resistance provided by the 200 ema (15 min). Bollinger bands are starting to constrict. Posted by Picasa

Thursday, December 14, 2006

20061214 5:15 pm. FKLI closes above the closing of 1071 yesterday. Basically an indecisive day or a spinning top formation, corroborating our view of the rangebound trade in FKLI. Posted by Picasa

20061214 324 pm. FKLI reaches the 21 ema resistance. Posted by Picasa

20061214 1059 am. Stopped out of the long trade.

20061214 0946 am. FKLI found support at lower bollinger band. So we took longs at 1075.5 this morning, with stop at the lows of yesterday, 1069. Posted by Picasa

Wednesday, December 13, 2006

20061213 14:46. If FKLI moves down into support level (the lower band), we will consider going long. Posted by Picasa

20061213 At the close of trade yesterday (12 Dec 06), a 3 candlestick 'evening star' formation emerged, a reversal sell signal on weakness. Posted by Picasa

20061213 0909 am. FKLI gaps down to continue the downtrend. 200 ema provides resistance points. Posted by Picasa

Tuesday, December 12, 2006

20061212 12:13 pm. FKLI reaches the 200 ema. Posted by Picasa

20061212 11:24 am. FKLi breaks down, could be trending down from here to the 200 ema. Posted by Picasa

Friday, December 08, 2006

20061208 3:50 pm. The blue line is the 200 ema on the 15 min FKLI chart. Could be a good support level. Posted by Picasa

Thursday, December 07, 2006

20061207 This is an example of what the local research houses churn out. Basically most of these 'market views' are of a fence sitting variety. They write to hedge their bets, so that they always seem to be right one way or the other. Investors would be better served if these analysts write committed views and stand by their view. If end up right, then they'll be good, wrong, take it like a man. Posted by Picasa

Wednesday, December 06, 2006

20061206 3:25 pm. A huge spike down in FKLI to 1050, most likely caused by a 'fat finger' trade, ie a mistake. However it provides an opportunity for us to set targets for the short trade from 1107.5 which we identified this morning. Posted by Picasa

20061206 Pivot levels to watch. 1107.5 stands out for opportunity to short for scalp trade.

Tuesday, December 05, 2006

20061205 This appeared in, a major newspaper daily's website in malaysia. Note the reporter is still referring to KLSE, which presumably is Kuala Lumpur Stock Exchange. This illustrates how uninformed, unknowledgable and how most people, including financial journalists haven't got a noggin clue to what trading and investing is all about. Imagine, even financial journalist are referring to an entity that no longer exists, now it is known as Bursamalaysia, after the demutualisation in 2004. Most are novices who can only buy stocks based on 'tips' and hype. Alamak, no wonder people get caught often in the stock market.

20061205 Breakout comes to the upside. Posted by Picasa

20061205 4:20 pm. Update on MAA. A nice classic chart pattern breakout.

20061205 3:22 pm. Bollinger bands are constricting, so we will look for a move soon. 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