Today - Holiday Mood

Friday - 26th September 2008
9.10 a.m. - Malaysian time
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The CPO ( crude palm oil ) futures for December's contract open at 2275 and closed at 2280 yesterday. The highest was at 2351 and the lowest was at 2259. The market saw a different of almost 100 points ( actually 92 points ).

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If you look at my forecast yesterday ( see # 6 ), the market open below 2285 and it did not retrace as expected and the level between 2240 to 2246 was not broken. In fact, the market ended up a small white bar at the end of the day with a long upper shadow. Since the forcast did not suggest any " buy or sell levels" as compared to #1 to # 5, I would say , there was no money loss yesterday. Instead, It was more of your call, really.

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Today

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In long term, the market is bearish but in the very short term, the market is said to be in the sidelines phase. In this phase the strategy that may be suitable to apply would be the contratrian strategy which means, sell where you are supposed to buy and buy where you are supposed to sell. ( Please refer to my previous postings )

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So, I would say, in general, the market will only show its new direction ( it may not be today ) if ;

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1) The level 2246 and 2410 are broken. If the level 2246 is broken down, the market may ( I repeat, the market may ) move further down and, on the other side, if the level 2410 is broken up, the market may ( I repeat, the market may ) move further up

2) If the market opens above 2410, the chances for the market to move further up is greater than the possibilities as in #1. Buy after the market has dropped a "bit" ( Please refer to my previous postings ) and beat up 5 points above the opening level.

3) If the market opens below 2246, the chances for the market to retrace further down is also greater than the possibilities as in #1. Sell after the market has moved up a "bit" and then falls passing 5 points below the opening level.

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P/S : Next week, the market will close on Wednesday and Thursday for 'Aid Mubarak festive season and I would be taking an off for the whole week. So I am going for a vacation and to enjoy myself !!!. Hooray....yahoo....yeahaa...yabadabadoo....etc

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