Wednesday, December 31, 2008

Happy New Year 2009 to all!! Back from holidays.

Today marks the first time that the new methodology for calculating the settlement price for Dec 08 FKLI futures contract. Should be a very good auspicious start for 2009, as the settlement will be more difficult to manipulate as the price is calculated on the last 60 mins of trade starting at 3:37pm and ending 4:51 pm, with the highest and lowest 3 values of the KLCI being discarded.

Thursday, December 18, 2008

20081218 1524. The momentum built up over the coiling of the spring period came to a head, with the FKLI futures exploding in the upwards move. Alas I am away till after Christmas. Rest assured, I hope the remaining diehard traders got their 2 sen worth of trading...!

Wednesday, December 17, 2008

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20081217 1028. The breakout continues, albeit slowly for the FKLI futures.

20081217 1119. UPDATE: FKLI futures reaches the high of 872.50, still slow going, but as they say, 'slow and steady' wins the race.

Tuesday, December 16, 2008


20081216 1715. After the long drawn out test of the downward sloping trendline, FKLI futures finally settle at 865, a 10 point premium to cash. Let's see if we can get some momentum going upside.

Today our regular conference in Yahoo wasn't running.(top traders on holidays) so I was in grepstrader's blog chat, some talk kok and sing song, nice chappies there.

20081216 0906 After the first 5 mins of trade we see no interest in the top 10 stocks. This is the December syndrome, where the market goes into holiday mode... But in markets anything can happen...

Monday, December 15, 2008

20081215 There ya go, guru: 4 hour chart of the USDCHF or Swissy, about 500 ticks of movement in just under a week. Indeed, " fores is better..."

20081215 1715. FKLI futures struggling to keep above its 3 day trend....

20081215 1105. FKLI futures busted through the resistance trendline on the 60 min chart and pulls back again. Will it ocntinue upwards?

Friday, December 12, 2008

20081212 1611. The pullback turns into a rout, when FKLI futures drop along with major regional indices, as the US senate makes noises to the effect that the "auto rescur logn" package will not be passed.

Thursday, December 11, 2008

20081211 1640. The 'turtle' poked it's head above the resistance line and got bonked by the bears. A pullback after break of resistance/support is normal.

20081211 1226. Hourly FKLI futures chart, in the trend channel. Watching the upper trend channel line...

Wednesday, December 10, 2008

20081210 1715. FKLI futures closed at 859...

20081210 1002. FKLI futures recovers back to the (risky) long entries indicated yesterday. So the last min sell off was a bit....overdone into the close yesterday.

Tuesday, December 09, 2008

20081209 1617. The big dogs looking at the bigger picture (60 min chart) makes any long trade a risky one.

20081209 1540. FKLI futures retraces into the 1 and 3 day trend ema. Does one bite the bullet and go long?

20081209 1018. AMMB (1015) is moving nicely off this possible double bottom formation, as we alluded to earlier.

20081209 0913. We had the breakout in the FKLI futures today, but it was non tradable! Because of the holiday yesterday, we missed a whole chunk of trading with strong regional markets yesterday. Anyway maybe we might long pullbacks into the moving averages, which now turns bullish, but trade remains lethargic.

Friday, December 05, 2008

20081205 I will not be in the office for trading today, but looking at the daily chart for FKLI futures, we see the price action for the past two days being the grinding constricted type, we call it 'coiling the spring'. Once the price stays in this mode for any extended period of time, the price will make an explosive move in either direction. Even more so, everytime I am away, the market makes a big move.... let's see if this pans out.

Wednesday, December 03, 2008

20081203 1715. FKLI futures trades gradually down into the close. The resistance in the morning curbed any strong moves up, in fact shorting was a prudent (patient) game.

20081203 1028. FKLI futures 1 and 3 day trend provides some resistance around the 850 area. On the stock side, is AMMB going to form a double bottom, noting an engulfing bullish formation yesterday on the dialy candlesticks.

Tuesday, December 02, 2008

20081202 1245. Snapshot of the equities on Bursamalaysia. The trading dynamics have changed, with Bursatrade providing 'continuous' trading for stocks, as well as new phases for the trading day. Closing and opening auctions provide increased transparency where the best bid and offers (5 deep now) for the whole market to see. And the best feature is for continuous trading, where every order has a price and time stamp. No more hanky panky where the opening trade is determined by the largest order in terms of size. If your price and time is the best, you will be up for matching first. It is really like moving from stone age to the space age.

20081202 1034. FKLI futures gaps down further in reaction to Dow's fourth worst fall in point terms in history. Underlies our comment yesterday morning ".. no reason to long the market...."

Monday, December 01, 2008

20081201 1658. FKLI futures trades to lows of 850. Today was the first day for BursaTrade Securities trading on the new trading/matching engine. Trading times for equities and derivatives are shown in the screenshot. Essentially derivatives hours are the same.

20081201 1439. Patience was the name of the game for any shorts today. FKLI futures breaks to 856.50 shortly after the afternoon session opened.

2008S1201 1200. Sime Darby is under selling pressure today, dragging down the cash KLCI. When the big boys want to cut loss, as in this case, we don't want to stand in the way. Better to let them cut lower, all should pakat and pull all bids.

20081201 0935. Switching back to the continuous FKLI futures contract, 15 m chart, very obviously it was down this morning, with no reason to long. At least I wouldn't anyway....

"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