Wednesday - 21 May 2008
9.20 a.m. - Malaysian Time
The CPO for August's contract for yesterday open at 3513 and closed at 3554. The highest was at 3559 and the lowest was at 3513.
For your information, there was a mistake written in my forecast for yesterday's market ( see #3), it should be " buy after the market has moved down 10 to 17 points from the opening point." Anyway the damage has already been done.
If you look at my forecast yesterday, the market open within the level at # 3 except that the market did not retrace after opening , in fact the market kept going up and closed to almost the highest of the day.There was also no clear formation of trendlines such as 3 tops or head and shoulder except after 5.30 p.m. As I have mentioned earlier, as a day trader , the latest to enter the market would be around between 4.30 to 5.00 p.m. ( again it depends on situation such as volatility, volume etc.) In normal circumtances, a day trader seldom buys or sells and later bring forward the trading to the next day. So, theoritically, no money again yesterday!!!!
So how's the market for today? The way I look at it, in a very short term, the market is still in bullish situation;
1) If the market opens between the level 3536 to 3559 - Buy after the market has retraced down " a little bit " after opening. Be careful if the market moves down in a very fast and steep way after opening, it could be a false alarm.If the market manages to beat down the level between 3528 to 3536 ( make sure you buy but not beating this level ) , the market may fall further down ( can short here ).If the fall keeps going down and beats the level between 3504 to 3513, the market may fall further and a black bar may be formed today.
2) If the market opens between the level 3511 to 3535 - Sell after the market moves up a "little bit". If the market manages to beat down the level 3504 to 3513 , see as above.
3) If the market opens between 3560 to 3583. Buy after the market has retraced down " a little bit " from opening. Careful if market falls steeply after opening. If you make " enough profits" lock up for profits immediately, the market may fall back. If not sure , do not enter the market if it opens at this level.
4) If the market opens below 3511 , it is your call.
5) If the market opens above 3583, it is your call .( Chances? It could be a black bar today )
Well, that 's about it. If you are not sure, contact your ..........girl/boy friend.....
Has a nais treding