trendfollowingmalaysia Trend Following Malaysia: Futures

[FCPO Dec, Part 3] Still in correction mode

correction

FCPO is in a bull market correction mode as covered in our FCPO Dec Part 2 Outlook.  Consequently, the market fell from 2,666 (Monday’s opening) to 2,561 as of Friday’s closing. Good job FCPO trend followers for enjoying this bull market correction, it’s all thanks to your own discipline and understanding in trend following.

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According to Day MACD (refer Chart 1, above), FCPO still in a bull market correction mode and with support 2,600 broken, the market could have a further bull market correction to either 2,545 or 2,468 support.

Keep in mind, FCPO is not going for a crash because prices are still trading above the red moving average of 2,468. In other words, FCPO is just in a bull market correction phase and will resume it’s bull run ONCE day MACD forms a golden cross.

Similarly like what happened on June 25 2012, FCPO formed a yearly bear run signal, but the strong bear run does not come immediately; instead the market had a slight retracement to the red moving average at that time before continuing it’s strong bear market correction. So trend followers, you know what to do, repeat the good work that you had been doing and follow your trading plans. Follow the trend well.

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David Lee

(Futures commission broker & equity remisier, Contributor of futures market trend following)

trendfollowingmalaysia Trend Following Malaysia: Equities

Malaysia Stock Market 1826pts Is Not A Problem.The Problem Is Your Stocks. : Trend Following 28/11/2013

Malaysia Stock Market 1826 Not a Problem

FBMKLCI

Here we go again! The Malaysia stock market index FBMKLCI is currently at 1798.46pts as of 27/11/2013. The FBMKLCI had gone through 2 weeks of market correction since early November and stays consolidated up to today. As the bullish trend remains intact (no deathly cross formation) we will highly see the FBMKLCI to test its historical high at 1826pts in the near term. Risks will always be there in the market, therefore 1790pts will be a very important support for the FBMKLCI to support at whenever there is a price retracement. Failure to support at this level will highly risk the market to enter into a big market correction (deathly cross) JUST like in August 2013. “Let your profits run as long you know when to protect your downside risks”

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Malaysia FBMSCAP Index to create new historical high

FBMSCAP

The small caps stocks in Malaysia will still remain as our main focus and favourable pick as opportunities will be there. Ever since the Golden Cross (rally) formation in September 2013, FBMSCAP has been hovers around its resistant high for a period of time. A break out from its resistant high will spark another bullish rally on this sector. Keep an eye at its 15,542pts as an important support that must not be violated else a big market correction will highly occur just like in August 2013. “Buying is easy. Selling and Cutting Losses is a whole new different story.”

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The Malaysia Futures Crude Palm Oil (FCPO) is definitely looking bullish right now. Entered into an downtrend since June 2012 and now finally we can see an uptrend formation on FCPO. Long term outlook stays bullish.

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William Au

(Position Stock Trader, Financial Speaker, Founder Trend Following Malaysia)