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We could see Fibonacci at work in the stock markets. Elliott Wave also demonstrated Fibonacci sequence in the wave counts. Below is an example of how Fibonacci and fractal works in the nature. Each water drop captured using high speed camera shows that the drop was bounced back while a bigger portion of itself joined the water surface. We could see that this happens so often in stock markets. Each market rally was interrupted with trend correction while each stock market fall was pause by bounce-back rally before continuing its trend directions.

It would be wonderful to observe if the bounce-back strength of the water drop coincide with the Fibonacci retracement ratio. Hopefully someday, some scientists take the effort to measure that.

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?

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

You and I can agree that there is such thing called the Law of Gravity. You throw an apple up into the air and it will eventually fall down to the ground. That is the law of gravity at work. Fibonacci is one of the wonderful codes that consistently appear in the nature, universe and even the stock market. It seems hard to believe that there is mathematical relationship that exists in the stock market that seems to be random. In fact the equity market is far from being random or chaotic. There is order to it just as there is order in the solar system. Time has proven again and again that Fibonacci, a sequence of numbers discovered by Leonardo of Pisa, works its magic by repeating patterns in the financial markets. It is a sequence of numbers beginning from 0, 1 where the next number is the sum of previous two numbers thus yielding a sequence of 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and etc. If you look deeper, there is a ratio between the numbers of a fixed interval that approach the Golden Ratio of 0.618 and its inverse of 1.618. You can also discover Fibonacci Sequence of Numbers encoded inside the Elliott Wave Count. Again, you may be skeptical about this. Don’t push the theory aside until you really look deeper inside. I was once a skeptic but now am a believer and student of this wonderful stock market analysis tool called Fibonacci.

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?

Good morning!! Dow Jones continues her rally from last Friday to close at 8443 points up almost 400 points (+4.93%) while NASDAQ up 87 points (+6.33%) to close at 1472 points and S&P 500 up almost 52 points (+6.47%). Europe had a bigger gain when FTSE 100 up by 372 points (+ 9.84%), DAX up by 427 points (+ 10.34%) and CAC 40 up by 291 points (+ 10.09%). In Asia, Nikkei futures was trading at 8500 points which gain is about 590 points from yesterday closing. Is this a new beginning for global stock market? Let us take an in-depth look into Malaysia FKLI.

Read entire post of Market outlook for FKLI — 24 Nov 2008

Malaysia political dramatic events continue to unfold this week when a reporter, a blogger and a politician were arrested under Internal Security Act (ISA – draconian law). The reporter was arrested for a day under the draconian law with a lame excuse by the Home Minister as a protection to the life of the reporter. KLCI downed -15.86 points to close at 1028.17 points while the FKLI Sept contract downed -28 points to close at 1010 points for the morning session. What a dramatic event!!

Read entire post of KLCI and CPO down. Dramatic political events unfold in Malaysia.

This upcoming week beginning 25 August is an interesting week. According to my Twitter post last week, I do mentioned that Dow Jones, Kuala Lumpur Composite Index (KLCI) and crude palm oil futures (FCPO) might peak on last Friday August 22nd or today based on my Gann analysis. We do witness crude oil dropped -6.40 to close at 114.59 after a few days of sharp rally. This coming week will also determine the political fate of Malaysia with the by-election of Datuk Seri Anwar Ibrahim on the Aug 26th. Let us take a snapshot of this week possibilities based on technical analysis.

Read entire post of Regional financial markets outlook beginning 25 August 2008