FKLI Futures Trading - Bursamalaysia
This will chronicle trading in the FKLI & FCPO futures. If you don't like what you see/read in this blog, just surf away. These opinions are our personal opinions and just a record of our thoughts..."In evolution, it’s not the biggest, the fiercest nor the smartest that survive, it’s the one that changes the fastest.” I.e. the key word is to adapt the trading style to the markets, until it stops working
Friday, October 31, 2008
Thursday, October 30, 2008
20081029 Another historic day for stock indices, note the Hang Seng up 12%, KOSPI up 11%. This after the record breaking Oct 2008 so far. I also heard someone say this is the biggest 3 day winning streak for Asia Pacific markets. Meanwhile, the FKLI futures breaches the downtrend channel. We might go long on pullback to or near the breakout level. At least that is the plan, subject to price action.
Wednesday, October 29, 2008
20081029 1029 pm. Following from our call on the bottoming of the DJIA, It seems like this may well play out, judging from the calm on the markets today, and yesterday's rally of biblical proportions. We'll have to see reaction to the FOMC decision on interest rates today..... But I am really glad that the shorts and the deleveragers sold at the bottoms on the respective markets capitulation bottoms.(fingers crossed those are the bottoms) Remember, in the days ahead when you see the so called 'deleveraging' selling of equities, pull all the bids, stand aside and let them sell as low as possible.
Tuesday, October 28, 2008
20081028 1612. Futures FKLI is trading at day's high 840. At around 9 to 9:30 am this morning I heard screaming from the MASA screen. IOICORP 2.06, Mayban 4.74. They were screaming "Buy me" but most were engrossed in the "Sale of the Century" and were only panic selling....
Saturday, October 25, 2008
Friday, October 24, 2008
20081024 21:33. The Dow futures went limit down a couple of hours ago, and has been suspended from trade till now. That was -550. It is now -620. Do you want to know what I think? This is THE FLUSH out all out panic that marks the bottom of this selloff the past few weeks.
The 4 hour chart shows the possible double bottom.
Thursday, October 23, 2008
Wednesday, October 22, 2008
Monday, October 20, 2008
Among the measures, Valuecap will use RM5 billion to buy 'undervalued shares'. Back in 1997, Dr Mahathir did the same thing "we will issue bonds worth RM8bn to buy stocks. At current PE it will be profitable." The KLCI was at 800 and tanked to 265 back then.... What will happen now?
Another notable quote is from Warren Buffett: "I am buying US stocks. A basic tenet of my investing philosophy is 'Be fearful when everyone else is greedy, and be greedy when everyone is fearful.' Right now FEAR is gripping even the most seasoned market professionals."
Double bottom on 5 min FKLI futures
20081020 1120. FKLI futures shows double bottom formation. This feels like the beginning of the end or does it signal the end. Certainly the way the selling came in on Friday on KLSE stocks and earlier this morning, it certaintly feels like capitulation.(bottom) In this situation, with the benefit of hindsight, everyone should have just stpped aside with the bids and let them (the suckers) sell every stock down 20 or 30% then there is opportunity for those brave enough to take on the capitulation trade. Hopefully this rebound continues on into the afternoon.
Saturday, October 18, 2008
20081017 Weekly KLCI is nearing the 790 target price for the giant H&S formation. it has taken about 3 months for the pattern we identified in early July to play out.
I have heard that the DMA revolution for Malaysian futures is taking shape. Excel force's DMA engine is now tested and approved by Bursamalaysia, and a futures broker is doing testing to launch to retai traders in about 2 months. Stay tuned!
Monday, October 13, 2008
20081013 A sea of green across the world equity markets today, in optimism on the Eurozone leader's action plan to cure the financial system woes. Some notable quotes "When it looks like the end of the world, IT ISN'T" A fellow trader asked me today on how the markets would go, the reply: "You will see the mother of all technical rebounds today...." I am not much of an experts/guru guy, but there was this expert on Bloomberg TV tonight saying, "This could end up being the buying opportunity (equities) for a generation." The anchor said that this move was a 9.5 standard deviation move downwards, the odds of which were the same as winning the lottery twice or being hit by an asteroid falling from outer space....
LIBOR rates: the key to any equities bounce
After the measures put in by the meeting of Eurozone leaders, the key to any bounce in equity indices is the LIBOR today when European markets open.
Saturday, October 11, 2008
Ten year cycle for the markets
The financial crisis is gripping markets, capitulation selling this past week, Oct 2008 joins the annals of history for market crashes. Recession looms large, some say will be prolonged one.
Let's step back and look at the investment cycle, where the real big money is made by such names as Warren Buffett. 1973, 1982, 1993, 1998 and now 2008. One needs to look at one's lifespan, 70-80 years?? First 20 years is spent in childhood and education into adulthood. After that how many 10 years has one got. The rest you can work out for yourself.....
Does one rush out to buy? That is a question I leave to you to answer.
Friday, October 10, 2008
Weekly H&S revisited
Thursday, October 09, 2008
Wednesday, October 08, 2008
Tuesday, October 07, 2008
"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
THE END OF AN ERA
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
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system