Wednesday, October 31, 2007

20071031 1715. FKLI futures declines. So the divergence finally takes hold. All eyes on the Fed tonight.

20071031 1245. So we were dead wrong on the bullish aspect of the FKLI futures. However, the break of the tight range identified yesterday proves to have follow through. Crude Oil futures short was dead on...

Tuesday, October 30, 2007

20071030 1715. FKLI futures is still trapped in the range. On Nov 5, the ASX will launch their exchange traded CFDs. Many of the countries around the region already have CFD providers making markets in stock as well as index CFDs eg Singapore, Australia, Hong Kong and Japan. CFD are contracts for difference, which have been driving the stock markets since their launch in London many years ago. It is estimated that 40% of the stock trading on the London Stock Exchange are CFD related. Hence they now occupy the landscape of a very important liquidity pool in those developed markets. But are they available in Bursa stocks? No, probably because of the paranoia on the regulator's psyche. Now ASX has its exchange traded CFD model, with the security provided by the clearing house. Maybe Bursa can look into this?

20071030 1553. FKLI futures seems to be consolidating sideways in the range. Looking bullish as the bouts of profit taking alleviates the divergence conditions on the 30 min chart.

20071030 1211. FKLI futures 15 min trading in a range.

20071030 The Stock Exchange of Thailand now provide direct access trading to its clients , brokers into its fledgling futures and options markets. But on Bursa, the dma access is a promised entity \ at this point in time. The SETTRADE, all 15 brokers use the same platform to enable interested clients to do dma trading. Why not on Bursa? Bursa chose to use the 'maximise the profit' strategy, form selling hardware and servers rather than on potential exchange fees from the 'big bang' that will come from dma trading. Wake up bursa.... the pressure from regionals is increasing. The equities system is over 15 years old.

Monday, October 29, 2007

20071029 1715. 15 min chart setup showed two whipsaw losers, with a valid breakout today, however the 30 min chart continues on the run up. Note though that there is divergence forming.

20071029 0930. FKI gaps up in response to wall st gains. Nice to post the continuation from Friday's breakout for effect...

Friday, October 26, 2007

20071026 1715. 30 min breakout move turned out to have momentum. 15 min upper breakout level puts some icing on the cake.

20071026 The Amazing Race between Commerz and Pbbank continues. Slowly and steadily Public Bank has caught up with Commerz Asset Holdings, and factoring in dividends will now show better total return.

20071026 1451. Breakout move continues on the 30 min chart. In the meantime, the 15 min FKI futures shows the breakout levels setting up.

20071026 1026. Breakout move continues on the 30 min FKLI futures chart.

Thursday, October 25, 2007

20071025 1715. Forcing breakout levels would turn out 2 failed moves and one good one. However fortune favours the brave in the 'difficult to execute' 30 min triangle breakout.

20071025 1552. Trading is simple, but it is not easy. A triangle breakout is in progress in the FKLI futures right now. Textbook patterns, difficult to execute.

Wednesday, October 24, 2007

20071024 1451. 15 min FKLI futures, but we had no levels setup. However the 30 min chart RSI gave the heads up on this reversal.

20071024 1140. FKLI futures accelerates downward movement, as the 30 min FKLI RSI crosses below 70. It is helpful to be aware of such conditions.

20071024 1006. FKLI futures 30 min RSI is above 70, watch for the cross back below 70.

Stock Tips? You don't need it to come from horse's mouth

Back in January 2007, if one bought AIGB, the gain would satisfy most investors, except mickey mouse.

20071024 0906. For those who like to speculate on overnight price movements, FKLI futures provides the high risk high reward.

Tuesday, October 23, 2007

20071023 1710. FKLI makes the breakout from the upper level of 1350.5, trades at premium to cash KLCI.

20071023 1245. At the lunch session close, we finally have osme breakout levels at 1350.5 and 1344.5. Let's see what happens to the FKLI futures trade.

20071023 Got to this website, promoting DMA trading (I guess it is) to participants outside Pakistan's Karachi Stock Exchange. Does Bursamalaysia yet have direct access trading for its markets? Let's hope the implementation of DMA is cost effective and utilises the internet's reach to reach out to the wider world trading community, and not the 'arm and leg' lease line type.

20071023 1220. With the market gapping up and moving sideways in the FKLI futures, sometimes patience in waiting for the correct setup, will prevent unnecessary losses from whipsaw price action.(without follow through)

20071023 1048. As trade in the futures continue, we reset the levels. In this case there is no indication of valid breakout levels, without th efour candle consolidations.

20071023 1013. FKLI levels not set yet. We follow price action and look for the consolidation periods of 4 15 min candlesticks, which has not happened (only 2 candles) yet, so we wait.

Monday, October 22, 2007

20071022 1715. FKLI futures limps sideways in the afternoon session, not much followthrough from the iitial lower channel breakout.

20071022 reports the Malaysian Astronaut, Dr Shukor returning safely to Earth, after a successful mission on board the International Space Station. A great step forward technologically for Malaysia. HOWEVER, our stock market is still using a 15 year old archaic trading system, and even though Bursatrade will be implemented, there is still no sign of DMA, direct market access where our capital markets will join the 'big bang' i the world of 'direct access straight through processing' routing of orders.(through the internet) Hope Angkasawan can inspire the technology leap in the archaic Malaysian capital market.

20071022 1215. FKLI futures forms the breakout levels at the close of the 12:15 pm 15 min candlestick. The Bloomberg reporter was saying, "Some fund managers say market participants are loath to short the Asian markets...." Well, if one shorted the HSI futures last Friday at the close, the gap down this morning was 1,000 points, or equivalent to Rm50,000 per dontract movement. Bottom line: only listen to and watch CNBC or Bloomberg TV for entertainment and fun, they ar the klaxons for the 'big manipulators', in my opinion.

20071022 0919. Most markets down >2% this morning in response to the Dow Jones Ind Average falling >360 points last Friday.

20071022 0849. Regional futures on indices open in a sea of red, mostly >2%.

Tuesday, October 16, 2007

20071016 1715. FKLi futures makes a low of 1358 and closes at 1361.5.

20071016 1620. Faced with a sea of red on global equity index futures markets, being on the short side was the way to go.

20071016 1542. After a couple of attempts to squeeze shorts (76 and 72) and an hour after the short signal, we have a nice move downwards in the FKLI futures.

20071016 1439. A break of the downside level at 1372, qutesitn is will there be follow through?

20071016 0849. FKLI futures starts the trade with a big gap down after the Hari Raya break. No levels setting up yet.

Friday, October 12, 2007

20071012 1715. To complete the picture, FKLI has traded without much momentum in the past few days, probably due to lack of participants nearing the Hari Raya break.

20071012 1245. Break of the ower level at 1375, but only a 4 point move downwards.

20071012 1048. We might get the levels set up at the end of this 15 min candle. Let's see how it pans out.

Thursday, October 11, 2007

20071011 1715. FKLI futures prints a high of 1384.5. Depending on one's patience level and discipline this was a good trend from the breakout, essentially the 'reverse move' trade.

20071011 1449. FKI futures follows through to reach a high of 1380.

20071011 1225. FKLI breaks the lower level 1368.5 and spikes to 1364.5. Now is breaking the upper level thin market conditins and "the FKLI is a goner..." observation by traders ahead of the Hari Raya holidays looks the culprit for this type of movement.

20071011 1113. At the end of this 15 min candle, if the FKLI futures stays in the breakout levels, a setup could indicate the breakout trade off the levels today.(1368.5 and 1372)

Contratulations Malaysian Astronaut

20071011 Last night our Malaysian astronaut, Dr Sheikh Muszaphar Shukor (pic from blasted off into a space mission on board Soyuz to rendezvous with the International Space station, as part of the Angkasawan Programme. Congratulations! Now for the Malaysian capital market to join the 21st century and embrace DMA (logo from in November 2007. Some traders have concerns on the FKLI futures state of affairs currently:"The FKLI is a goner...." The market has been thinning out with no definite trends. DMA will bring in more participants. But not just the DMA with lease line access that will cost an arm and a leg, but one that fully exploit the reach of the general internet.

Wednesday, October 10, 2007

20071010 1715. FKLI futures closes at 1367. Long breakout fails, while the short breakout moves down.

20071010 1634. Took this screenshot of the FKLI 30 min chart (top chart) at 11:04 am this morning. A very nice divergence yesterday preceded the rally off the higher lows in the FKI futures price. Meanwhile, the 15 min charts shows one false upside breakout and 1 short breakdown, in play currently.

"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
Introduction 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
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
Larry Hite: The Billion Dollar fund Manager
Systems Trading:Kroll's Suggested Method
Buy the Strength Sell the Weakness
Good advice
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system