US DJ Getting Ready to Test 9700? Will CI Break 1200?

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.

My Current Futures Trading Indicators

Alot of people have been asking me what kind of Indicators I use. So I screen capture it and let you guys see. Straight Forward and very simple.

If you are a technical chartist, then you will know.

My Futures Trading Indicators in OSK OMS 188

Most of you have been asking me what kind of Indicator do I use when I trade Futures. Here are some of them which I use in OSK OMS & Telequote.

Personally I like to use Telequote & also monitor Regional Market, but I do have to pay a monthly fee of RM300 for this real time informations.

However, I feel that the free charting from OSK188 OMS should be enough for beginners. (You get it free when you are a Futures Trading Client of OSK). I use 5 Min Chart & 15 Min for Day trade, when you feel that the market is side ways, switch to 15 min charts. I do also monitor regional market indices & movements but charts are the most important.




Here are some of the indicators that I use.

1. Exponential Moving Average 4.
2. Exponential Moving Average 9.
3. Exponential Moving Average 27.
4. Simple Moving Average 100.
5. Bollinger Band.
6. Parabolic SAR.
7. MACD.
8. RSI.
9. Fast Stockatic 5,3,3.
10. Slow Stockastic 14,3,3.

For those of you that wish to know how to use these indicators, feel free to give me a call or sms me at +6016-8864229. I am available on MSN at mailto:wuipin@streamyx.comalso.

This is just a brief sharing. Hope this help with your trading.

Trading Tools

If any of you are wondering, what does a good trader use as Technical Analyst Tools. Then I would Suggest Winquote & Metastock.

Winquote is a Live Data Feed Stock Market Tools, which can cover any World Market (Provided that you pay for the subscription) including KLSE, SGX, HSI, US & European Market if you are interested in trading them.

Here is an example of what I see on my World Market Page, this is all real time live data Feed, its not like Yahoo which is 15 Minutes or sometimes 30 minutes late.

As You can see, Dow Jones is trading around 7300, that's almost 10 years Historical Low. Where as Our KLCI has dropped almost 9 points on friday, but futures has drop 17 points, that's means that Futures is more headed Downtrend. And with DJ down another 100 points on Friday night. I expect Today (Monday) KLCI Futures to be more down wards.