US Dow Jones close at -37 at 9544.20, August Month Lowest was 9116.52, Highest was 9630.20, meaning it has been ranging around 400 points marginally. I suspect the drop maybe due do the news that 3 more US bank are shutting down, making it a total of 84 Bank Closures in the year 2009.
Personally I think the market is going into a temporary consolidation, Sept month is normally more cautious as most crashes occur during this period. Like 911, 916 Lehman Brothers Bankruptcies and Bank Foreclosures. Of course again financial results announced.
US DJ Daily Chart shows signs of consolidation from Stochastic, MACD, Bollinger Band and Moving Averages. Normally there is a big trend after Consolidation, so be cautious of trending signals. In the event that a crash does appear and the support for DJ at 9300 level is broken. Do expect a slight correction. Moving Average hasn't crossed yet, but MACD & Stochastic is crossed. market is consider sideways for now. August month was a sideway and tough trading low volume month.
KLCI Chart shows support around 1157 & Resistance at 1194 accroding to the Bolinger Band. Do take note that its daily chart is also consolidating like the US DJ Charts. The Last Trading Day of the August months' Volume was slightly up. Stochastic and MACD are at peak and starting to come down. So market is consider sideways also.
The KLCI September Contract does seem a slight consolidation also as it follows and is on par with CI. Personally I don't like the fact that it slump down to 1167 during the last trading hour on Friday. Highest on Friday was 1177 and Lowest was 1167. KLCI Close at 1174.47. Meaning its at Discount about 5.5 points. Personally I consider the market is sideways if the Futures is at Discount. Its only consider bullish if the Futures is at Premium of 4 points, very bullish if its 6 points.
In Summary, trade with caution, and if you are a scalper or intraday trader, take profit when u earn about 5 points.
I notice that for example, if US Dow Jones was up -37 like Friday night, let's assume that its 4 pionts. KLCI August Month Highest on Friday was 1173.50 + 4 points = 1177.50. 1178 was the highest and with only a few contracts done. So if we take profit or reverse our position at 1175.50 we are consider "Safe Entry".
From the time being, I wish to test this Calculation Theory and see how it goes.
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