Thursday, July 31, 2008

20080731 1001. FKLI futures (spot) continues the uptrend hitting a high of 1166 this morning.

Wednesday, July 30, 2008

20080730 0922. Well, the KLCI did dip below the buy level of 1150, and one would have plenty of time to get long (plan A)yesterday, with a range of 1136 to 1146 on FKLI futures.

Monday, July 28, 2008

20080728 1715. FKLI futures afternoon trade on 5 min chart.

20080729 1446. Cash KLCI trades at 1156.24. Might be good idea to wait for retrace towards 1150 to get long the FKLI futures. At least that is te plan for now.

Friday, July 25, 2008

20080726 1715. A 5 min chart, a couple of trendlines, a triangle, breakout and the FKLI futures trends into the closing. The next time the markets seems to be meandering simlessly sideways for a couple of hours, refer back to this chart.

Wednesday, July 23, 2008

20080723 1715. To complete the picture of the rally in FKLI futures today, the 5 min chart. The next queston is will the rally last? Remember the 1150 is a very important resistance zone, being the neckline of the H&S pattern on the weekly KLCI chart.

20080723 1141. FKLI futures uptrend does continue today to the high so far of 1125, albeit with a gap up in the early morning.

Tuesday, July 22, 2008

20080722 1139. Since support was found yesterday morning, the FKLI futures is on an uptrend, establishing higher low. Will it continue?

Monday, July 21, 2008

20080721 0938. Cash KLCI is under pressure this morning. Support comes in at 1091 and 1086. Some positive divergence on FKLI futures daily chart. We are thinking of going long when the cash support levels come.

Wednesday, July 16, 2008

20080716 1025. FKLI futures has been in the range trading mode for a while now. Might be a good idea to relax until the next move out.

Tuesday, July 15, 2008

20080715 1443. FKLi futures scribes the range, until the next move.

20080715 1123. FKLI futures has retraced back to the other day's breakout level of 1111.5.(now below it) this is after the KLCI cash index kissed the neckline of the weekly H&S pattern. Might see support at these levels, but will have to see. Low of 1106 now trades 1109.5. Looking for trading in the range 1105 to 1115.

Monday, July 14, 2008

20080714 1550. FKLI futures breaks the upper level 1128.5, a pretty good follow through move.

20080713 1435. FKLI futures forms the breakout range of 1128.5 and 1123.5. See if the breakouts have any follow through.

Saturday, July 12, 2008

20080711 1715. FKLI futures 5 min chart with the uptrend evident. Now for the cash KL CI to 'test the weekly H&S neckline 1150 level', which it is doing right now.

Friday, July 11, 2008

20080710 1517. Cash KLCI is now at 1151.04. The retracement to 1150 has completed.

Thursday, July 10, 2008

20080710 FKLI futures 5 min chart. This is the current uptrend that the market is on now. Why is this happening? Plenty of doom and gloom on the futures and stock market last week. Well the irrational short positions were taken by some players, irrespective of the price, the discount to the cash index and daily technicals (RSI extgremely oversold) The rally is in part caused by short covering by these players. 1150 beckons on the cash KLCI.

20080710 1545. The wicks on the 21 exp mov avg shows support being established fo rth eFKLI futures contract. If it holds the uptrend is intact.

20080710 1145. FKLI futures has broken the upper level of 11.5. How were the levels determined? Look at the chart.

20080710 1005. FKLI futures 15 min breakout range is set at 1111.5 to 1103.5. Let's ee what happens.

Wednesday, July 09, 2008

20080709 1707 FKLI futures looks like closing near highs.

20080709 1529. One would be in long, now for the ride up. But the KLcI ust retrace to 1150.

20080709 1147. If one is looking to the view that cash KLCI will retrace to the 1150 level, then the moving averages on the 5 min FKLI provide good buy points.

20080709 0913. FKLI futures gaps up into the resistance area of 1107.

Tuesday, July 08, 2008

20080708 FKLI futures broke the 1107 support today, which now becomes resistance.

Monday, July 07, 2008

20080707 1613. FKLI futures breaks through 1120 now trades 1120/20.5. Whenever the stock market plunges too far too fast, bargain hunters emerge, and the way to identify it could be the daily RSI. If one doesn't long the market, at least refrain from shorting into new lows.

20080707 1140. FKLI futures hits low of 1106.5 in the morning. There seems to be good support there, with buyers stepping up. Is this the start of the rebound?

Sunday, July 06, 2008

The Weekly FKLI futures chart, (as well as cash KLCI) shows the break of the neckline of a giant Head and Shoulders formation. This points the way to the target price of 790 on the FKLI futures contract. Not withstanding this, we are of the opinion that there will be a technical rebound to 'kiss the neckline' goodbye before further falls to the lower levels and the target.

Friday, July 04, 2008

20080704 1715 FKLi futures July contract could only reach 1117 on the rebound.

20080704 1609. FKLI July futures is now trading at 1115/1115.5, off lows of 1104.5. Undergoing the expected technical rebound.

Thursday, July 03, 2008

20080703 1715. Despite the non trading of Bursamalaysia stocks, due to a technical glitch, the FKLI futures had its move, a sign of a maturing market, where price is determined by true supply and demand, not under false influences of 'marking' of 100 shares in key component stocks.

20060703 The message from the exchange at 15:27 states:

"The equities market is suspended from trading for the day....."

Sources say that the exchange was integrating securities to trade on Bursatrade, the new matching engine. The dealers/remisiers are supposed to do a final test this Saturday. So it seems technology has outpaced itself again. FKLI futures traders are happily trading away though.

Message from the Derivatives market system at 14:27 pm.



FKLI futures trading meanwhile continues, for the high risk takers.

Text from on the non trading in bursamalaysia stocks for the morning session. Catastrophic multiple hardware failure.

"KUALA LUMPUR, July 3 (Bernama) -- Trading on Bursa Malaysia will resume at 2.30pm Thursday after a system failure caused it to close for the entire morning session.

In a statement here today, Bursa Malaysia Securities Bhd said trading would resume from the back-up system at its alternate trading site.

Bursa Malaysia said it would investigate the problem that caused the trading system failure in the morning at its primary site and was working towards resuming trading from the primary site as soon as possible.

Separately, the Securities Commission (SC) said it has been in close communication with Bursa Malaysia following the technical failure in the trading system.

Bursa Malaysia has assured the SC it was working to resolve the situation as quickly as possible.

The SC will continue to monitor developments closely in order for market integrity to be maintained at all times."

Wednesday, July 02, 2008

20080702 Cash KLCI daily chart is deeply oversold, so we are due for a technical rebound. RSI is below the threshold 30 levels. The rebound can be fierce, which explains the narrowing in the discount of July futures to the cash index. Compare to the last 2 instances of a big selloff in the KLCI, will history repeat itself? One thing for sure, catching the falling knife will be high risk, with high reward.

Tuesday, July 01, 2008

20080701 Trend day down in July FKLI futures today. Bad news aplenty, and the market reacted accordingly.

"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