12 Feb 2008 ( 10.30 p.m. - Malaysia time zone )
Today the market open at 3405 , closed at 3375. The highest was at 3446 and lowest was at 3375.
The opening of the market was within my expectation as mentioned yesterday except that after opening the market started to move up to 3446 before falling down to 2391 and moved up again to reach 3421 before lunch break. The market retraced to 3491 which was 14 points from the opening not 15 points as I have suggested yesterday. Anyway I do not recommend to buy here as my strategy is more focusing on taking position in the early part of the opening.
After opening the market moved up to 3446, there was a "clear " pattern or formation of 3 ascending Tops ; 1st Top was from the opening to 10.41 a.m., 2nd Top from 10.41 to 10.50 a.m., 3rd Top was from 10.50 to 11.06 a.m. A sell (short) position after the 3rd Top formation would incur profits to about 20 to 40 points.
An inverted formation of Head and Shoulder was also formed before lunch break. But the " pattern" was not clearly recognised, so the best thing to do was to stay away from the market. The Shoulder was clearly formed between 11.26 a.m. to 11.30 a.m., the head from 11.30 a.m. to 11.40 a.m. but the other shoulder was not clearly recognised.
After lunch , there was also a clear pattern of 3 Tops ; the 1st top was between 12.00 a.m. to 3.14; the 2nd top from 3.14 p.m. to 4.00 p.m and the other top from 4.00 to 4.30 p.m. So from this observation, I can say that there were 2 points of entry for today's market.
What about Wednesday?
Since today's market was a black bar, so I anticipate tomorrow will be bearish ( Please take note that tomorrow may end up a white bar but my strategy is to focus on after opening rather than the closing so whether the market ends up white or black bar makes no different to me);
1) Take position only if the market opens between 3426 to 3349. After opening, if the market moves up to about 11to 16 points, then place a sell here and don't forget to put a stop loss between 10 to 20 points after taking the position. If after opening the market moves up in a fast and sharp gradient, just be careful. If not sure, stay away.The best is, after opening, the market retraces down a little bit and then starts to move up slowly and steadily to reach at 11 to 16 points after opening, then put a sell position here . Any way do not forget your stop loss point.
2) If the market opens above 3426 and moves up passing 3438 to 3443 then the market may go up further.
3) If the market opens 3349 and below , the chances is that the market could move up further
4) Any way if you decide not to take any position after the opening of the market, then look for these clear formations ; 3Tops/Bottoms, 2 Tops/Bottoms, Head and Shoulder ( also inverted Head and Shoulder ) and Half Mountain trendlines. If there are no clear formation , just do nothing
5) As I mentioned earlier , this is only a prediction on the CPO market. I may be wrong! I have been wrong for quite a number of times. If in doubt please contact your broker.