Trade Initiation Update for the Day

A short signal was triggered at 877 when price touched that level at about 3.30 pm.  As market is abou to close, one can just close the position with a small profit.

As at today, the margin rates for FKLI has been revised to RM4,200 per contract.

Trading Tips for the Day

The DJIA closed sharply lower 226.44 points and closed at 8149 points on the backdrop of continuing worries about the ailing economy.  Unemployment claims reached a record high while new home sales hit a record low.  Expect the KLCI Futures to open lower.  For the February 2009 contract, the resistance level is at 877 so one can attempt to short at around that point, support level is at 865 and one can attempt to long around there if the market price opens between these two figures.  Target profit is about 5-7 points.  If price breaks above 882 a breakaway trade can be initiated by going long, and if price breaks below 860 one can attempt to go short.  Updates on trade initiation will follow, stay tuned.

Trade Initiation Update for the Day

KLCI Futures February 2009 contract opened at 888 and neither the long nor the short signal has been triggered yet.  Stay tuned for more updates.

Update at 9.30 am – A long signal was triggered at 881.  Place cut loss point 5 points away at 876.
Update at 9.53 am – Traders who took the Trading Tips for the Day and went long at 881 would be sitting on a profit of 3 points now as the price is 884 now.  One can que to close the position at 886 to 888 depending on the trader.

Trading Tips for the Day

The DJIA closed sharply higher 200.72 points to settle at 8375.45 points on reports of plan for bank to be set up to absorb bad assets that is weighing down on the financial system.  The House also passed a historical $819 billion stimulus plan to further aid the ailing economy.

Both the KLCI Futures spot month and February 2009 contract will open higher than yesterday’s close in view of DJIA higher closing.  As it is near month end and spot month contract is about to expire, we shall look at the February 2009 contract.  Resistance level is at 889 so one can attempt to short at around that point, support level is at 881 and one can attempt to long around there if the market price opens between these two figures.  Target profit is about 5-7 points.  If price breaks above 894 a breakaway trade can be initiated by going long, and if price breaks below 876 one can attempt to go short.  Updates on trade initiation will follow, stay tuned.

Trading Tips for the Day

The KLCI Futures spot month contract opened higher as expected as over the weekend and holiday DJIA closed slightly higher. However expect volume to be a bit low today as most traders are still in holiday mood.  A bit of good economic news were trickling into the US markets as US Steel and Amex post better than expected earnings.

Resistance level is at 869 so one can attempt to short at around that point, support level is at 866 and one can attempt to long around there if the market price opens between these two figures.  Target profit is about 5-7 points.  If price breaks above 871 a breakaway trade can be initiated by going long, and if price breaks below 864 one can attempt to go short.  Updates on trade initiation will follow, stay tuned.

Trade Initiation Update for the Day

KLCI Futures opened at 868 which is between the breakaway level of 867 and support level of 869.  Thereafter it initiated the short signal of 866.5 when it broke below 867.  However throught the day price did not move much so there were no big opportunity to take profit nor cut loss.  Quite a dull day for day traders.

Trading Tips for the Day

The DJIA lost ground again when it closed 105.30 points lower than the previous day’s close to 8122.80.  News of Microsoft slashing 5,000 jobs in the next 18 months did not go well with investors and banks continue to pour out bad news about their well being.  Layoffs also increased and housing construction tumbles last month.

Expect the KLCI Futures spot market to open lower than previous day’s low.  Resistance level is at 875 so one can attempt to short at around that point, support level is at 869 and one can attempt to long around there if the market price opens between these two figures.  Target profit is about 5-7 points.  If price breaks above 878 a breakaway trade can be initiated by going long, and if price breaks below 867 one can attempt to go short.  Updates on trade initiation will follow, stay tuned.

Trade Initiation Update for the Day

Update at 8.53 am – KLCI Futures spot market opened at 879, which is right at the breakaway level.  A long signal is triggered at 879.5 when price went pass the breakaway level of 879.  Cut loss point is 5 points.
Update at 10.00 am – Price is still at 879 with not much movement in the market.  Check out my new page “My Trading System” on the bottom of the right column.
Update at 4.00 pm – Cut loss was triggered as price dropped below 874.5.  A loss of 5 points today for Trading Tips.  We will see how it does tomorrow.

Trading Tips for the Day

The DJIA gained back two thirds of what it lost on the day before, up 279.01 points and closed at 8228.10.  Positive comments from banks and better than expected results from IBM Corp. and hopes that the US government will give more help to the ailing economy pr0pelled a rally that recovered most of the previous day’s losses.  In the local scene, Bank Negara Malaysia lowered its key interest rate by 75 basis points to 2.5 per cent, indicating that downside risks to economy growth had risen significantly.

Expect KLCI Futures spot market to open higher than previous day’s close after DJIA’s positive close.  Resistance level is at 876 so one can attempt to short at around that point, support level is at 870 and one can attempt to long around there if the market price opens between these two figures.  Target profit is about 5-7 points.  If price breaks above 879 a breakaway trade can be initiated by going long, and if price breaks below 867 one can attempt to go short.  Updates on trade initiation will follow, stay tuned.

Trade Initiation Update for the Day

Update at 9.28 am – KLCI Futures spot market opened at 865, which is below the breakaway level of 873.  In this case one can wait for the price to move to about 873 and attemp a short with a cut loss point of 877.
Update at 10.15 am – KLCI Futures spot price touched 873 just now so a short is initiated.  One can take profit with 5-7 points profit, which is at 868 to 866.
Update at 4.35 pm – Price touched 868 and chance to take 5 point profit as suggested earlier.  Another winning day for Trading Tips for the Day.