Tuesday - 13 May 2008
10.05 a.m. - Malaysian Time
The CPO for July contract open at 3600 and closed at 3570. The highest was at 3623 and the lowest was at 3555.
For your information, the strategies that I potray in this blog are merely the general strategies which I gathered from selected investment books such as the 3 tops/bottoms, head and shoulder ...etc. Besides that , I also develop my own strategies such as lightning strategy, double beatings, after 11 strategy, after 330 strategy , 3 ( buying and selling zone)channels etc. So in this blog you may find there are times when I mention the points to enter/exit the market and also there are times when I do not mention the points of enterance at all. There are also other strategies that I frequently use which could not be explained in this blog because the explaination needs the use of charts and graphs. In fact these are, so far, the best strategies to be used to determine the position of either to enter or to exit the market.
In a very short term, the market is said to be in bearish situation. In fact, if the gap formed yesterday could be filled today, it will imply that the bearish situation may continue further.
1) If the market opens between 3555 to 3585. Sell after the market has moved up between 8 to 20 points after opening. If the market moves up in a vey fast way, just be careful. It could a false alarm.Don't forget your stop loss of about 10 to 15 points. Anyway , if the market manages to beat the level between 3598 to 3605, the market may go up further, a white bar may formed today. ( Best if market do not open more towards to the 3585 level ). If you hesitate, probably you could look for 3 tops or head and shoulder or other trendlines before shorting. ( as long as it does not beat the level 3598 to 3605 )
2) If the market opens between 3586 to 3598. Take position ( buy ) after the market has beaten the level between 3598 to 3605. Be careful, if after opening here, the market moves up in a very fast and steep gradient, it may be a false alarm. Take position on the second attempt.The market may ends a white bar today or at least would go up before retracing down. It would be enough for you to lock up for some profits.
3) If the market opens between 3555 to 3585 and moves down and beats the level 3550 to 3555, the market may retrace further down. Anyway it may go up again after retraching a certain level. For best result, if the market opens more towards the lower end of this level ( more toward to 3555 - put a sell here )
4) If the market opens between 3530 to 3555. Sell after the market moves up between 8 to 20 points or if the market opens and moves up about 5 points and then retraces down passing the opening level. Put a sell after 3 points down from the opening . Don't forget your stop loss.If not sure , can look for trendlines as mentioned at #1 above.
5) If the market opens below 3530. It is your call. Anyway, the chances of further down is quite great especially if the market manages to fill yesterday's gap.
6) If the market opens above 3622 and beats up the level 3624 to 3630 or open above 3630, the market may move further up and a white bar may be formed today. You can put a buy here.
That is it. If in doubts...contact anybody you like except your wife
Have a nice trading