Wednesday, October 21, 2009

Where To Now?

The CPO ( Crude Palm oil) futures for January's contract open at 2215 and closed at 2180 yesterday. The highest was at 2216 and the lowest was at 2161. The market ended lower with a black bar and again, it was a buyer's market.

One of the hardest thing to do in forecasting a market's direction is ; where the market is heading now? Sound crazy, don't you think so? Some indications, based on past performance, may look as if the market is heading upwards but after you have taken your position, the market turns the other way around. Then you cut loss. Then, again, it happens on and on......etc....

Yesterday the market open within the forecasted suggestions but it did not move according to expectation. So nothing happened! Yahoo ya badabadoo....

Today

After Opening Strategy:

1) If the market opens between 2172 to 2197. Sell after the market has moved up 7 points above the opening level.
2) If the market opens between 2191 to 2206 ( overlapping to #1). Buy after the market has moved up passing the levels between 2211 to 2216.
3) If the market opens between 2207 to 2217. Buy after the market has dropped a bit and then moved up passing 5 points above the opening level.
4) If the market opens between 2161 to 2171. Sell after the market has dropped passing down the levels between 2150 to 2155.

OR ( Before 11.40a.m.)

1) If the market opens between 2161 to 2208;
1.1 Buy after the market has moved up passing the levels between 2209 to 2215 and then falls to the levels between 2185 to 2190.
1.2 Sell after the market has dropped passing down the levels between 2155 to 2160 and then moves up to the levels between 2185 to 2190
2) If the market opens between 2209 to 2220. Buy after the market drops to the levels between 2185 to 2190.
3) If the market opens between 2150 to 2160. Sell after the market has moved up to the levels between 2185 to 2190
4) If the market opens besides the above, it simply is your call, cannot be other
5) Please refer to my postings dated 12th January, see #6

The best is to contact your futures dealer, if you are not sure...who else then?


Have a nice trading day, Mike.

9.05am.

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