26 Feb 2008
9.10 a.m. - Malaysia time zone
Yesterday ( Monday - 25th Feb) the market open at 3782 and closed at 3866. The highest ( again the highest ever recorded ) was at 3914 and the lowest was at 3776.
Since I did not make any forecast on yesterday's market so there was nothing for me to "say" today. There was also no clear formation of trendlines which could be recognised
I would rather say that , in a very short term, the market is still bullish except that if the market manages to break the level 3830 and starts to decend further southwards;
1) Preferbably take position only if the market opens between 3855 to 3935 ( this is the position for bullish expectation ). If the market opens within this range and later moves downwards from 13 to 21 points from opening , then a long position can be placed here except if it passes 3853 and downwards, then there may chances that the market may retrace further down. Remember to put a stop loss between 10 to 15 points from the long position that you have taken. I received an e-mail from one of the viewer asking me the best position to buy after the market has reached the level where we are suppose to buy. Actually there is a strategy but it is quite hard for me to explain here as it needs a chart. With this strategy you can minimise the losing risk.
2) If the market opens between 3830 to 3855 and later later retraces to beat down 3830 , I would figure that the market may retrace further. Then a sell position could be placed here. There is a strategy to place a sell here in order to minimise the loss.
3) If the market opens at any point and later starts to move up passing 3920 or open above 3920 , the market may move up further. Anyway if the market opens above 3940 , it may be a black bar today
4) If no position taken after opening, then look for a clear formation of trendlines which I have mentioned earlier in my last postings but focus more on the trendlines that would signal a sell rather than a buy ( In fact you can still put a buy here but you have to look at the "trend" of the market ).
4) As usual, I am only speculating and I may be wrong. The choice is still yours.
Have a nice day and happy trading!