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Hi Readers,

I would like to wish all Chinese friends out there "HAPPY CHINESE NEW YEAR" and "GONG XI FATT CHAI" as today is the Chinese New Year Eve. May you enjoy your reunion dinner tonight. This week is a long holiday for Malaysia stock market as Feb 1st is Federal Territory Day and Feb 3rd-4th is the Chinese New Year celebration. So, it can a be more quiet week than usual. However trends remain trends regardless of anything else. Let's take a quick look into Malaysia index futures market FKLI.

As we can see in the above 15-mins intraday chart for FKLI Spot Month (Malaysia Index Futures), there are some strong support around 1,500 points. Twice heavy selling could not break beyond this level as of now. Signal 1 is NOT a buy or sell signal itself but it is only an alert signal to watch for. As of last trading day in 31 Jan 2011, the FKLI spot month closed at the support / resistance line around 1,516 points. So, it barely triggered the Signal 2 which could means it will most likely to rally upwards in these couple of days. Please be reminded as of now, the most likely rally is the corrective rally instead of a new uptrend wave until signal indicate otherwise.

p/s: Hope you enjoy making money shorting the stock market 2 weeks ago. Enjoy your holiday.

There is no doubt it was a strong market rally for quite sometime now. The question that we are asking is that when will the stock market pause and have a good and healthy correction to its uptrend? Personally, I believe that the market has more upside in the mid term to long term view. As for short term market outlook on hourly stock chart for FKLI Spot Month (Malaysia Futures Market), we could see that the market had been rallied to the new high at 1579.5 (projected based on multiple Fibonacci retracement lines) before its short term target for correction down to 1555 before rebounded back to 1575.5. Please be aware the rally back to 1575.5 was actually a bear flag chart pattern forming. As of yesterday, the bear flag was broken, and we could expect to see more correction for FKLI and KLCI market for a short term market review before any healthy uptrend can continue. My first projected target based on Fibonacci would be at 1543 points.

Hi fellow investors & stock traders,

Be prepared for a new leg of downtrend coming next week starting from 30 Nov 2009. News that Dubai World, the emirate’s main development engine, was asking creditors to delay paying back its $60 billion debt, triggered a heavy selling pressures on the equities and commodities market. Hong Kong’s Hang Seng Index (HSI) dropped -1,075.91 points (-4.84%) to 21,134.50. Japan Nikkei dropped more than 300 points to 9,081.52.

Be prepared for heavy selling pressure on the US stock markets today as it re-open after yesterday holiday. Expect more selling pressures next week. It’s time for a stronger correction to the previous rally.

In response to Moody comment, I decided to write a blog post to review the crude palm oil commodity trading from 2007 to 2009. Is there any different between the 2007 Bull Run and this coming rally at the beginning of 2009? If you look at the chart, I have placed a question mark there for us to consider what could be the Elliott wave count. How about chart pattern analysis for FCPO March contract? Let’s analyze the chart.

Read entire post of CPO Market Review: 2007 Bull Run Repeats in 2009?

At present crude oil is trading around $47 per barrel after heavy rallying from the bottom. Crude palm oil March 2009 contract closed at RM 1,740 last Friday on the first trading day in 2009. So, has the market bottomed for commodities like crude oil and palm oil? I would believe the price charts more than anything else. Generally I believe that the global stock market had bottomed for the moment. So, the short term market outlook will be looking bullish. What I mean by short term could be months to a year. What would be the trading strategy for us to adopt in 2009? Let’s check out the trader’s chart.

Read entire post of CPO Market Outlook: Crude Palm Oil Bottomed?

I guess many people are wondering where does the global stock markets are heading as 2008 is ending its note for 2009 to step into center stage. Some said that the stock market had bottomed while some said gloomy news still looming ahead till 2010. TradeOrInvest would like to address this from the perspective of investing and trading as these two businesses are different in nature. So, is it true that the market big move is coming soon after days of consolidation? After many days of waiting for the market trend to unveil itself, I would say that another opportunity to short is coming soon. Why I say so? Just look at the hourly candlestick chart for FKLI Dec contract.

Read entire post of FKLI Market Outlook: Big Move Coming for Short Trader

Today was indeed a violent day for United States financial markets. Dow Jones Industrial Average (DJIA) fell by 679.95 points (-7.70%) after official announcement that United States confirmed in recession. NASDAQ fell by 137.50 points (-8.95%) while S&P 500 plunged by 80.03 points (-8.93%). It is another day with huge movement. I said in my last post that a new beginning is possible. I guess I am wrong on this looking at the market behaviour today. Anyway, we trade by the chart and self-opinion could be wrong. For now, I turned to short position as trading signal was triggered for Malaysia FKLI.

Read entire post of Malaysia KLCI sells down. U.S. recession confirmed.

In my previous post, FKLI Nov contract failed to close above the 870 points level on the intraday hourly chart. This week is a short week for US as they are preparing for the holiday season. Dow Jones fall in the morning session but rally after the afternoon session to close on a positive note of 36 points (+0.43%), while NASDAQ was down by 7.29 points (-0.50%). By now, I believe that many people are scratching their heads and wonder where does the global financial markets are heading to? Recession and unemployment are felt everywhere. Banks are failing. Giant insurance company AIG broke the silence by announcing her mountainous problems. Automakers are begging for cash from the government. All these news are really depressing to the economy. But as we all know that the stock markets are leading the main street business by months. Rescue plans are on the way to the ailing companies. Value and blood are found everywhere on the financial streets. Will this be the end of the financial depression? Should we expect a healthy rally from here? Let’s look into the Malaysia stock market.

Read entire post of A new beginning for Malaysia stock market?