Thursday, January 31, 2008

20080131 There was an erroneous large trade in the China H Share index futures traded on the Hong Kong Exchange today, which the exchange subsequently busted and cancelled a series of trades. Cast your minds back to last week, where CPO futures had a 200 point move down, which Bursamalaysia referred to as caused by 'stop loss orders triggering'. The exchange here needs to be aligned with world class exchange practices and have a busted trade policy, to protect from obvious erroneous trades.

20080131 1715. These setups have the weakness that they are subjective in nature, unlike our normal setup which is objective.

20080131 1623. A possible bull flag on the FKLI futures.

Tuesday, January 29, 2008

20080129 0913. Just to complete the picture, the FKLI futures contract
gaps up this morning.

Monday, January 28, 2008

20080128 1715. FKLI settles at 1383.50.

20080128 1637. FKLI futures goes on to make high print of 1379.5 on
the 5 min chart.

20080128 1604. Trade with the trend and one can reduce stress levels.
It is easy to get caught up in the moment, eg as in today when the
foreign indices are all 'crashing'.

20080128 1544. Follow the trend, at this moment in time the trend on
the shorter term charts is UP.

20080128 1513. Had a setup in the morning which triggered short FKLI
futures at 1273.

Friday, January 25, 2008

20080125 1715. FKLI futures gaps up after the signal triggeres. Trigger long came before the session break.

20080125 1245. A couple of examples of the setup today at 11:20 and 12:18.

Thursday, January 24, 2008

20080124 1715. Price action for the FKLI jan 08 futures today. The short at 1385.5 reaches a low of 1366.

20080124 10:13 We had a break of the lower level at 1385.5, so there
was an opportunity to sell. Now mkt trades at 1380. (Chart later)

Wednesday, January 23, 2008

20080122 1715. Fkli futures levels for today were wider than usual due to the big bar.

Monday, January 21, 2008

20080121 1715. FKLI futures explosive move to the downside, but after a gap down.

20080121 1245. Another set of breakout levesl within the original. Can
we get an explosive move?

20080121 1152. At the end of this 12:00 15 m candle, we might get a setup with the breakout levels.

Saturday, January 19, 2008

20080118 1715. FKLI futures gaps up after the lunch session berak, but settles back onto the breakout level.

Friday, January 18, 2008

20080118 1245. FKLI futures set up a breakout off the upper level.

Wednesday, January 16, 2008

20080116 KLCI plunged. So much for our bullish scenario ala China index. But is the uptrend dead? Time will tell.

Tuesday, January 15, 2008

200801 A nice setup.15 1715. FKLI futures moves down further into the close. A nice setup today.

20080115 1245. FKLI futures breaks the lower level of 1529 and reaches a low of 1518.5.

20080115 1035. Some breakout levels have set up at this moment in time.

Friday, January 11, 2008

20080111 KLCI cash continues to rally.

Thursday, January 10, 2008

20080109 Following on from the daily chart analysis, we were dead wrong on the resistance holding (that is the folly of engaging in longer term forecasting). However the next course of action would be for the KLCI to head for the upper extended target line. Watch for a pull back to get into long positions.(remember position taking is a longer term endeavoour and needs different risk management from intraday setups.)

The KLCI resembles the SHICOM (Shanghai Composite Index China) in early 2007.(top chart) The middle chart shows the outcome. Will this pattern repeat in the KLCI? Different markets, but recurring chart patterns. Time will tell.

Monday, January 07, 2008

20080107 1547. Breakout at 1459 proves a good one, but needs patience on the part of the trader.

20080107 1604. FKLI futures sets up some breakout levels.

Saturday, January 05, 2008

20080104 1702. This snapshot of the KLCI cash index (daily chart) gives perspective on the bigger picture. Sometimes it is easy to fall into the bull trap when the newspapers headlines blare out "KL Composite Index hits new all time high". But price action going forward will be the king in determination, and has the final say on the direction.

Thursday, January 03, 2008

20080103 1715. Had 2 breakouts today. Downside went for 1.5 points only and upside a little better about 4 points. FKLI futures has been scribing tight ranges.

20080103 1103. At the end of this 11:15 candle, if we are still within the range, FKLI futures could set up our first breakout trade.

Wednesday, January 02, 2008

20080102 1230. Drawing a line through the middle of the first 5 min candle and observing market activity early on, gives pointers ot the possible trend for the session.(at least it was up for a while)

Tuesday, January 01, 2008

20080101 Happy New Year 2008. Here's wishing all a profitable year ahead, and good health to all.

"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