Friday, September 28, 2007

20070928 1715. Oct FKLI futures comes back to retest the breakout level. The chart completes the picture: "Trading is simple, but it is not easy."

20070928 1245. The movement in the spread between Oct and Sep FKLI futures, contributed to the creation of premium in Oct FKLI futures. What does this mean for the stock market going forward? Basically rollover are those in the right side (long) keeping long futures position and those wrong (short) postponing the losses. It is just switching months, and the supply and demand equation this month, at the very least indicates bullish tone for the stockmarket. However in trading, we need to assume the markets are a losing game, so any view cannot be stubbornly adhered to. When you assume it's a losing game from the outset, big losses can be prevented, minimising the damaging drawdowns.

20070928 1140. With the high rolling market out of the way, the breakout on the Oct FKLI futures has a relatively smooth ride to 1348.

20070928 1028. Switching over to oct FKLI futures for trading from now. With rolls almost over, the market may return to 'normal'.

2070928 When DMA comes to Bursamalaysia, we might see the FKLI futures and Bursa equities go 'Global' and join the ranks of the international community with Direct Access trading.

Thursday, September 27, 2007

20070927 1715. FKLI Sep reaches high of 1348.5, but in the 'rolling market that gathers no profit', you have to be quick to bank some decent profit. Trading in reality is two steps forward and one step back (hopefully). You just need an approach that is meaningful in the larger picture.

20070926 SGX is upgrading to the next generation trading system.(from Business Times website) Hopefully Bursatrade and the DMA will be matching this standard from its competitor. Actually the trading link up can be accomplished with the respective exchanges DMA hooking up. Since both will use the FIX protocol, which is standard protocol, this should be easy to accomplish. No need to spend extra money on the 'trade link up'.

Good stuff on trading

20070927 A friend referred this webpage, has some good stuff on this particular traders' thoughts about the markets and trading.

20070927 1224. FKLI futures hits the other level, indicating close out and doing the 'reverse trade' long. In times of rollover, the 'rolling market gathers no profits' is very apt.

20070927 1210. FKLI futures trades through the lower breakout level. We'll have to wait and see for the followthrough. Markets are 'bullish' across the board throughout the Asia Pacific region, with Australia and Hong Kong reaching record.

Wednesday, September 26, 2007

16:59 AFX Singapore Exchange says link up with Bursamlaysia faces further delays

20070926 An AFX news story on the proposed link up between SGX and Bursamalaysia facing further delay, due "not to technology problems, but other unspecified problems..." Direct market Access initiative by Bursamalaysia can accomplish this just as effectively on the technology. Let's hope there are no further 'delays' in DMA implementation for the derivatives and equities later, which would enable the 'big bang' surge in trading volumes in both cash/derivatives market in Bursamalaysia.

20070926 1715. A long breakout triggered, but near the end of the month, the rollover activity in the FKLI futures spoils the trading, hence the saying, 'A rolling market gathers no profits'. Nevertheless, Sep FKLI futures settle at 1333 from the breakout level 1329.5.

20070926 1101. FKLI Sep futures today, with the levels. A relatively 'quiet' day with Hong Kong and Korea markets closed. Rollover activity dominates trade. As the saying goes, 'a rolling market gathers no profits'.

Tuesday, September 25, 2007

20070925 1715. FKLI Sep futures settle at 1219.

20070925 1619. HSI futures closed and FKLI breaks the lower level again, this time with some follow through.

20070925 1145. FKLI futures downside break, but has no momentum. Sometimes it is good to limit losses to keep drawdown to a minimum.

20070925 1032. FKLI futures sets up some breakout levels. Context is that the market has been on a good uptrend on the 15 min chart since yesterday. Let's see what happens.

Monday, September 24, 2007

20070924 1715. FKLI futures ends up in a 'trend day' price action at 1325.

20070924 1619. As the HSI futures closed (up 2.59%) at 16;10 pm, FKLI has hit a high of 1321.

20070924 1209. At 10 am, the breakout levels were set at 1303.5 and 1300. Sideways meandering could have lulled one into thinking that "the setup may not work", but the breakout ended up to be a good one. HSI futures rally (2%) this morning lent weight to the uptrend.

Friday, September 21, 2007

20070921 1039. FKLI breaks out of the upper level at 1301.

Thursday, September 20, 2007

20070920 1630. 15 min FKLI futures chart. There are 2 breakout ranges today, with some possible trades, the first was a short at 1296 break. Second trade was a successful long on the breakout of the upper level at 1300.5. Now is on a short signal on the downside break, which as I post this entry in the blog FKI trades to 1296.

Wednesday, September 19, 2007

20070919 1715. FKLI goes on to close 1300, at least something is better than nothing from the long breakout.

20070919 0952. breakout levels are 1298.5 and 1287.5, a very wide range for the FKI futures. With the big gap up on the order imbalance caused by the 335 point rise in the Dow Jones Industrial Average, it will be interesting if the breakout levels hold.

Tuesday, September 18, 2007

20070918 1630. FKLI futures on the 30 min view. RSI crossing of the 30 from below is a technical sign traders would do well to notice.

20070918 1620. FKLI futures breakout levels were established just after 11:00 am at 1256 and 1259. For today both turned out to be valid levels to profit from.

Monday, September 17, 2007

20070917 1715. FKLI futures reaches low of 1256.5. Eventually got there but the market today is low volume with little participation.

20070917 1556. FKLI breaks out from lower level 1265, with reasonable follow through. It is nearing the Hang Seng closing right now.

20070917 1216. FKLI futures sets up some levels for the breakout form this consolidation range.

20070917 1105. FKLI 30 min with the ocntinuation of the downward move.

Friday, September 14, 2007

20070914 1715. A change of pace, switching to the 30 min chart setup, it is good to watch for the RSI 10 to first go into overbought territory (70 level) then cross down below 70 for the sell signal. There are many ways to trade, no right or wrong way, only what works and what doesn't, which will be proven over time.

20070914 1245. With the HSI scaling records, the long breakout works a treat. Remember to fight fear and control emotional greed in the markets.

20070914 1004. FKLI futures sets some levels this morning, 1269.5 and 1274.5. Let's see what happens.

Thursday, September 13, 2007

20070913 1124. The HSI futures fills its opening gap and then some more. FKLI not quite the setup for the short breakout.... but good for those who were able to jump on board and catch it.

Wednesday, September 12, 2007

20070912 1715. FKLI settles down into the closing. For those who hold out, patience is rewarded. For those who miss out, remember "There will always be trade setups going forward. The market will always be there."

20070912 1218. FKLI Sep futures breakout levels for the morning 1272.5 and 1278. Slow going on the downside for the shorts, but is a reflection of the slow markets generally, as Pat says "..Onli retailer in..."

Tuesday, September 11, 2007

20070911 1625. Shorts off the break of 1278 proves ot have legs and followthrough for the FKLI futures. This setup off consolidation, is but one method to approach trading leveraged financial instruments like the jFKLI futures.

20070911 1103. FKLI reashces 1283. We are now back in another consolidation pattern with breakout levels 1284 and 1278.

20070911 0946. FKLI 15 min. Will the FKLI futures breakout of the consolidation setup pattern today? Levels 1272.5 and 1278.5.

Saturday, September 08, 2007

Some interesting statistics regarding the growth of derivatives volume in this news report. I have put up a chart showing the 5 week moving average of the FKLI futures volume oging back to the week beginning 15 Sep 2005.(sport month contract only) The market is growing, next step DMA with internet trading will create the 'big bang' of volume.(hopefully 3 or 4 times the current numbers)

Friday, September 07, 2007

Reuters report: Malaysia unveils 2008 Budget, eyes election

A short summary the Budget 2008 by Reuters.
Part 1
Part 2
Part 3

20070907 0939 pm 5 min chart of the YM (mini Dow futures). The NFP (Non Farm Payrolls) comes in weak.

20070907 1245. Withut much movement in cash KLCI the FKLI futures spikes to as low as 1273. The 30 min chart had already given some warning to be wary of the long side.

20070907 1115. At the end of this candle, we have the breakout levels set up in the FKLI futures.(horiz lines) Budget to be announced today.

Thursday, September 06, 2007

20070906 1715. FKI futures breaks the upside but without follow through.

20070906 1610. Taking the same setup as in the previous post, we can set up some breakout levels in the afternoon. Always remember to manage the risk of the trade.

20070906 1559. This is what Andrew was referring to this morning: "ANDREW: SAW A SETUP AT 1278, LONG" The last 15 min bar of yesterday and this morning's first bar was considered the 'master bar', so the long was taken on the breakout of the 4 oonsolidation bars.

Wednesday, September 05, 2007

20070905 KLCI daily chart indications that the retracement has reached the 61.8% level.

"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