Daily Summary - 8 May 2012

Good evening traders,

My flu is getting worst so I think I'm going to do a brief one and go to bed soon..

Wow.. what a disappointing day.. I thought that we would have a nice range to trade and it turned out to be an utterly boring day! Just like watching paint dry on the wall!

We traded to these following levels today:

FKLI

Opened: 1582
High: 1585.50
Low: 1580
Closed: 1585.5

Cash

Opened: 1584.47
High: 1590.60
Low: 1583.72
Closed: 1584.87

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What a small range day it was. Total of 5.5 points from high to bottom, it made me almost angry!

We opened at 82 and briefly touched 80 before cash opened. Cash then opened strong and futures also traded up to 85. After that, cash mostly traded in the 86-87 range while futures languished in the 81.50-83 range throughout most of the morning. Boring beyond belief! Or perhaps I was just not feeling well so was a bit impatient.

I was long at 83 for one account and long averaged at 82.50 for another. Price was at such a small range for what seems like an eternity. Even when cash market broke 88 we were still at the same range and couldn't break 83.

In the afternoon, we opened largely unchanged, but price seems like it was about to toppled over. We touched a low of 80.50. Each time we tried to rally, it seems like a small whisper would push the market over and we would test the low again. And again we tried to rally as cash was strong, and again prices was thwarted at 83 by seemingly little selling. This made me jittery. I had my initial target at 85 and this just made me wanting to get out of the freaking position.

Towards the end of the day, cash seems to be doing it's 'Malaysia Boleh' thing again and was matched higher and closed at 1590.60. My order to get out at 83 for the 82.5 entry was hit on the break out while the 83 order was out for a point profit at 84 advised by Teo.

So, I'm ok with going out at break even. If price did not go in my direction during normal trading hours, then I'd rather get out at break even or a small loss rather than wait for things like 'Malaysia Boleh' type of matching up to go to my target, although price finally did go to my target and acted as I expected in the morning.

You can tell I'm angry huh? Haha.. yeah.. Having flu does that to people some time.. so please forgive me.. Hope I feel better soon..

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What to expect tomorrow:

Well.. it has been two days that price action was like crap. It is no coincidence that we are now trading at the area of the 20ema for the Cash and Futures contract. Actually, if you noticed some of the charts that I post, you will see two thin line around the 20ema. That is the Envelop line, with the displacement adjusted differently than how you would use it normally.

Basically, what it says is that, when prices are trading near the 20ema, things can get choppy. I suspect that we are entering into such phase. So I want to be watchful of such crappy situations again tomorrow.

We will see how the US market perform tonight and then post the trading levels tomorrow.

Today's seemingly weak selling seems to be able to push this market down a few points so I want to see how committed the bulls really are. But I will still have to follow the lead of the Cash market. Seems like there are some invested interest bidding this market up. 

Take care and night all!

Best Wishes,
Tech Trader