Monday - 9 June 2008
9.10 a.m. - Malaysian Time
The CPO contract for August on last Friday open at 3460 and closed at 3528. The highest was at 3541 and the lowest was at 3435.
For the last whole week, I was on vacation ( school holidays in Malaysia ) and I decided to free myself from any trading of what so ever. In fact , some of the places where I took a rest have no telecommunication facilities, "and my mind was so calm and so clear "( lyric from an oldie ).
In a very short term, the market is said to be bearish, anyway the direction of the market today will depend on the opening of the market ( This is the strategy used at current situation ).
1) If the market opens above 3629, the market may move further high and a white bar may be formed today. Buy after the market has dropped to between 8 to 18 points after opening or buy after the market drops " a little bit" and then starts to move up again beating 3 points after the opening level. Be extra caereful if the market opens above 3653, this strategy may not work.
2) If the market opens between 3590 to 3625. Buy after the market has dropped to between 8 to 18 points after opening. Don't forget your stop loss of about 10 to 15 points.If the market beats the level between 3626 to 3633, the market may move further up ( long here ) especially if the market opens more towards to the upper end ( nearing the 3625 level ). If the market beats down the level between 3570 to 3576, the market may move further down. This is more prominent if the opening is nearing the 3625 level ( short here )
3)If the market opens between 3580 to 3590 , sell after the market beats down the level between 3570 to 3576.
4)If the market opens between 3555 to 3579, sell after the market has moved up 8 to 18 points from opening or after the market moves up " a little bit" and then drops down beating 3 points after the opening level.
5) Other than the above, it is your call
6) If the market opens and moves up or down in a very fast and steep way and beats the anticipated level, be careful, it could be a false alarm. Wait for a second attempt.
7) You can also look for trendlines such as 3 tops, head and shoulder etc..... at appropriate level before making any position.
8) If you are not sure.......just stay out of the market.
If you are still not sure.....contact anybody whom you know except your in-laws
There are other strategies that are used which have a better winning outcomes but cannot be revealed at the moment due to the need of charts and graphs, may be some other time.
Have a nice trading day!!!!!!!!