For FKLI
For FCPO
Monday, June 30, 2008
5:08 pm - FKLI is weakening toward EOD !
The institution rollover has cause the FKLI turn bearish and once the rollover is over, it is back to normal - weak to bearish.
3:21 pm - FKLI July is bullish due to the month end rollover
Despite cash market selling down -6.62, you see July contract bullish.
2:53 pm - Kucinich: 'We went to war for the oil companies'
Kucinich: 'We went to war for the oil companies'
By Nick Juliano
Rep. Dennis Kucinich, who has introduced measures to impeach George W. Bush and Dick Cheney, said Thursday that oil executives who secretly met with the vice president in 2001 should be held criminally liable for pushing an illegal war.
"In March of 2001, when the Bush Administration began to have secret meetings with oil company executives from Exxon, Shell and BP, spreading maps of Iraq oil fields before them, the price of oil was $23.96 per barrel. Then there were 63 companies in 30 countries, other than the US, competing for oil contracts with Iraq," the Ohio Democrat said during a speech on the House floor.
"Today the price of oil is $135.59 per barrel, the US Army is occupying Iraq and the first Iraq oil contracts will go, without competitive bidding to, surprise, (among a very few others) Exxon, Shell and BP."
The New York Times reported last week that those companies, Chevron, Total and some smaller companies were set to receive no-bid contracts from Iraq's Oil Ministry. According to the paper, such deals "are unusual for the industry," and the companies prevailed over more than 40 others, including some from Russia, China and India.
In March 2001, two years before Iraq was invaded, Cheney met with top executives from Exxon Mobil Corp., Shell Oil Co., BP America Inc. and others on his infamous secret Energy Task Force.
Kucinich seemed to accuse participants in that meeting of plotting the invasion of Iraq. There's no indication that the participants discussed military action, although documents later released showed they did eye Iraq's oil fields.
The White House convinced the Supreme Court to let it keep secret the proceeding's of Cheney's task force, although the Washington Post later revealed most of its activities.
Kucinich accused the US government of forcing Iraq to privatize its oil fields, which are estimated to hold more than 100 billion barrels of oil, and keeping US troops at war to protect the oil reserves.
"Our nation's soul is stained because we went to war for the oil companies and their profits. There must be accountability not only with this Administration for its secret meetings and its open illegal warfare but also for the oil company executives who were willing participants in a criminal enterprise of illegal war, the deaths of our soldiers and innocent Iraqis and the extortion of the national resources of Iraq," he said.
"We have found the weapon of mass destruction in Iraq. It is oil," Kucinich continued. "As long as the oil companies control our government Americans will continue to pay and pay, with our lives, our fortunes our sacred honor."
By Nick Juliano
Rep. Dennis Kucinich, who has introduced measures to impeach George W. Bush and Dick Cheney, said Thursday that oil executives who secretly met with the vice president in 2001 should be held criminally liable for pushing an illegal war.
"In March of 2001, when the Bush Administration began to have secret meetings with oil company executives from Exxon, Shell and BP, spreading maps of Iraq oil fields before them, the price of oil was $23.96 per barrel. Then there were 63 companies in 30 countries, other than the US, competing for oil contracts with Iraq," the Ohio Democrat said during a speech on the House floor.
"Today the price of oil is $135.59 per barrel, the US Army is occupying Iraq and the first Iraq oil contracts will go, without competitive bidding to, surprise, (among a very few others) Exxon, Shell and BP."
The New York Times reported last week that those companies, Chevron, Total and some smaller companies were set to receive no-bid contracts from Iraq's Oil Ministry. According to the paper, such deals "are unusual for the industry," and the companies prevailed over more than 40 others, including some from Russia, China and India.
In March 2001, two years before Iraq was invaded, Cheney met with top executives from Exxon Mobil Corp., Shell Oil Co., BP America Inc. and others on his infamous secret Energy Task Force.
Kucinich seemed to accuse participants in that meeting of plotting the invasion of Iraq. There's no indication that the participants discussed military action, although documents later released showed they did eye Iraq's oil fields.
The White House convinced the Supreme Court to let it keep secret the proceeding's of Cheney's task force, although the Washington Post later revealed most of its activities.
Kucinich accused the US government of forcing Iraq to privatize its oil fields, which are estimated to hold more than 100 billion barrels of oil, and keeping US troops at war to protect the oil reserves.
"Our nation's soul is stained because we went to war for the oil companies and their profits. There must be accountability not only with this Administration for its secret meetings and its open illegal warfare but also for the oil company executives who were willing participants in a criminal enterprise of illegal war, the deaths of our soldiers and innocent Iraqis and the extortion of the national resources of Iraq," he said.
"We have found the weapon of mass destruction in Iraq. It is oil," Kucinich continued. "As long as the oil companies control our government Americans will continue to pay and pay, with our lives, our fortunes our sacred honor."
9:24 am - DJIA is looking very bad from here !
Next major support 10700. It closed on 11,346 last friday.
It's easy to short !
Saturday, June 28, 2008
7:29 am - Wall Street extends losses in volatile week
Wall Street extends losses in volatile week NEW YORK (AP) - Wall Street ended a depressing week with another big loss onFriday, with the Dow Jones industrials falling more than 100 points amidever-escalating worries about high oil prices and fallout from the creditcrisis. The major indexes are all down more than 3 percent for the week. The Dow has fallen nearly 460 points in the last two sessions and reachedits lowest point since September 2006. Investors again contended Friday with a seemingly relentless stream oftroubling news about the financial sector. Moody's Investors Service said it isreviewing investment bank Morgan Stanley for a possible downgrade. There werealso more reports that Merrill Lynch & Co. might have to write off nearly $6billion of risky mortgage-backed debt. In addition to anxiety about the financials, the market watched oil's marchhigher -- the price of crude rose to a new record of $142.99 a barrel on the NewYork Mercantile Exchange. Wall Street remains concerned that higher commodityprices will slam consumers with not only elevated costs for energy and food, butalso for other goods if cash-strapped companies decide to pass along the risingcosts. "People are trading with a lot of emotion," said Alexander Paris, aneconomist and market analyst for Chicago-based Barrington Research. "I think themarket is trying to make a bottom, but the question is will it hold there orjust crash through. It feels just like the top of the technology bubble in 2000,you know there's something wrong but it is hard to time it." Investors got little solace from economic data released on Friday. TheCommerce Department said spending rose 0.8 percent in May, as taxpayers startedreceiving their stimulus checks. The increase was higher than the 0.7 percenteconomists predicted. The report also said personal incomes surged 1.9 percent-- significantly more than anticipated. After taxes, incomes surged 5.7 percent,the largest amount in 33 years. The Dow fell 106.91, or 0.93 percent, to 11,346.51, compounding Thursday's358-point skid. The blue chip index is down 19.9 percent from its record highclose of 14,164.53 in October, and is on the verge of the 20 percent pullbackthat is considered the threshold for a bear market. Broader stock indicators also closed lower. The Standard & Poor's 500 indexfell 4.77, or 0.37 percent, to 1,278.38. The S&P, the index most closely watchedby market professionals, is down 18.3 percent from its October high. The Nasdaq composite index fell 5.74, or 0.25 percent, to 2,315.63. The market was pounded this week not only by a resurgence of bad news aboutthe financial sector and $140 oil, but by harbingers of problems to come inother parts of the economy. Poor outlooks for high-tech companies and theautomotive sector reminded Wall Street that the troubles have the potential tobecome widespread. There is also likely fear on the Street about upcoming second-quarterearnings reports and companies outlooks for the rest of the year. Oracle Corp.'swarning of difficult times ahead contributed to Thursday's huge drop. For the week, the Dow gave up 4.19 percent, the S&P shed 3 percent and theNasdaq fell 3.76 percent. With one trading day left in the second quarter, theDow is down 7.47 percent, the S&P 500 is off 3.35 percent and the Nasdaq is up1.60 percent. Year-to-date statistics show how badly the market has suffered from thecredit crisis and the impact of soaring oil: The Dow is down 14.46 percent, theS&P 500 is down 12.94 percent and the Nasdaq is down 12.69 percent. Even if the economic numbers coming out soon -- including the government'sJune employment report, to be issued on Thursday -- look better, the marketlikely won't be reassured, because the impact of higher oil is still not known. Declining issues outnumbered advancers by about 3 to 2 Friday on the NewYork Stock Exchange, where volume came to 1.4 billion shares. Bond prices edged higher. The yield on the benchmark 10-year Treasury note,which tends to move opposite its price, was at 3.96 percent, down from 4.03percent late Thursday. The dollar was lower against other major currencies,while gold prices rose. In other economic news, the University of Michigan's June index of consumersentiment came in at 56.4, a bit lower than its reading in May and slightlybelow the average analyst estimate. "The problem is that there's not one, single worry," said Hugh Johnson,chairman and chief investment officer of Johnson Illington Advisors. He pointedto high gas prices, still-tight credit market conditions, and the contractinghousing market. "If you're looking for problems that face investors, that facethe U.S. economy, they're everywhere." Also Friday, a Lehman Brothers analyst lifted his prediction of MerrillLynch's asset markdowns in the second quarter. His write-down estimate rose to$5.4 billion from $3 billion. On Thursday, a Goldman Sachs analyst forecast a$4.2 billion write-down at Merrill and a nearly $9 billion write-down atCitigroup Inc. Merrill shares fell 35 cents to $32.70, and Citigroup shares fell 42 cents,or 2.3 percent, to $17.25. Morgan Stanley dropped 12 cents to $36.71 after Moody's said the investmentbank's "financial performance and risk management has been inconsistent" sincecredit markets began last year. The company will focus its review on MorganStanley's ability to control risk and generate profit over the next one to twoyears -- a period Moody's expects will be challenging for investment banks. The Russell 2000 index of smaller companies fell 0.28, or 0.04 percent, to698.14. Overseas, Japan's Nikkei stock average fell 2.01 percent after Wall Street'stumble Thursday. Britain's FTSE 100 rose 0.21 percent, Germany's DAX index fell0.58 percent, and France's CAC-40 lost 0.65 percent. Copyright 2008 Associated Press. All rights reserved. This material may not be
Friday, June 27, 2008
11:11 am - Short sellers are covering their short position.
Look at the volume drying up as it moves higher !
10:21 am - Oil Falls From Record as U.S. House Passes Speculation Measure
By Christian Schmollinger and Margot Habiby
June 27 (Bloomberg) -- Crude oil fell in New York, retreating from the record $140.39 a barrel reached yesterday, as the U.S. House of Representatives approved a bill aimed at curbing excessive energy-market speculation.
The bill, which passed 402-19, would require the Commodity Futures Trading Commission to consider using position limits, or constraints on the size of the stake each speculative investor can own, and raising margin requirements, the amount of money required to trade. The vote came after the record was set.
``Sentiment may push prices down initially,'' said Mark Pervan, a senior commodity strategist with Australia and New Zealand Banking Ltd. in Melbourne. ``Curbing the speculative element might cause prices to fall so sentiment alone would suggest that we might see some profit-taking.''
Crude oil for August delivery fell as much as $1.03, or 0.7 percent, to $138.61 a barrel in after-hours trading on the New York Mercantile Exchange. It was at $139.38 a barrel at 9:35 a.m. Singapore time.
Yesterday, oil rose $5.09, or 3.8 percent, to $139.64 a barrel, a record settlement price, as Libya threatened to cut output, OPEC's president said prices may reach $170 by the summer and the dollar weakened. Yesterday's all-time-high intraday price surpassed the $139.89 reached June 16.
Oil futures have moved by 2 percent or more on half of the trading days this month. Prices veered 43.4 percent from the 30- day average yesterday, the highest volatility in 16 months, according to Bloomberg data. Volatility is a measure of how far the price of a commodity such as oil deviates from average closing prices over a prior period, such as 30 or 60 days.
``When you've got such an active market, it's very news sensitive,'' said ANZ's Pervan. ``These markets can move quite sharply because you're talking about a higher volume game.''
Pre-Recess Vote
The House passed the measure just hours before recessing for a week for the July 4 Independence Day holiday, a time when members typically return home and meet with constituents. Rising retail gasoline prices, which averaged $4.07 a gallon on June 25 and reached a high of $4.08 on June 16 according to the AAA, have angered voters. Gasoline prices are up 34 percent this year.
The measure calls on the CFTC use its emergency powers to ``curb immediately the role of excessive speculation'' in any market it oversees in which energy futures or swaps are traded.
An emergency in commodity markets is defined as a ``threatened or actual market manipulations or corners,'' any domestic or foreign government decision affecting prices, or ``any other major market disturbance which prevents the market from reflecting supply and demand,'' the CFTC said in a statement yesterday.
The agency ``has never exercised emergency power based on price trends that have developed over months or years,'' the statement said. Emergency powers have been invoked four times since the CFTC was formed in 1976.
Task Force
The measure is ``not likely to be bullish,'' said Tim Evans, an energy analyst for Citi Futures Perspective in New York. ``You can argue that it may not be effective, but I don't know that you can actually argue that it's bullish.''
The measure needs to be passed by the Senate and signed by the president before becoming law.
The CFTC, which regulates U.S. commodity futures and options markets, said earlier this month that it formed an interagency task force to evaluate developments in commodity markets, including the role of speculators. The task force includes the Federal Reserve, the Securities and Exchange Commission, the CFTC and the U.S. Departments of Treasury, Energy and Agriculture.
The House defeated a separate measure mandating that oil companies produce energy from current leases or be disqualified from future leasing.
Brent crude oil for August settlement was at $139.50 a barrel, down 33 cents, on London's ICE Futures Europe exchange at 9:10 a.m. Singapore time. It rose $5.50, or 4.1 percent, yesterday to settle at a record $139.83 a barrel. Prices touched $140.56 a barrel, the highest since trading began in 1988.
To contact the reporters on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net; Margot Habiby in Dallas at mhabiby@bloomberg.net.
June 27 (Bloomberg) -- Crude oil fell in New York, retreating from the record $140.39 a barrel reached yesterday, as the U.S. House of Representatives approved a bill aimed at curbing excessive energy-market speculation.
The bill, which passed 402-19, would require the Commodity Futures Trading Commission to consider using position limits, or constraints on the size of the stake each speculative investor can own, and raising margin requirements, the amount of money required to trade. The vote came after the record was set.
``Sentiment may push prices down initially,'' said Mark Pervan, a senior commodity strategist with Australia and New Zealand Banking Ltd. in Melbourne. ``Curbing the speculative element might cause prices to fall so sentiment alone would suggest that we might see some profit-taking.''
Crude oil for August delivery fell as much as $1.03, or 0.7 percent, to $138.61 a barrel in after-hours trading on the New York Mercantile Exchange. It was at $139.38 a barrel at 9:35 a.m. Singapore time.
Yesterday, oil rose $5.09, or 3.8 percent, to $139.64 a barrel, a record settlement price, as Libya threatened to cut output, OPEC's president said prices may reach $170 by the summer and the dollar weakened. Yesterday's all-time-high intraday price surpassed the $139.89 reached June 16.
Oil futures have moved by 2 percent or more on half of the trading days this month. Prices veered 43.4 percent from the 30- day average yesterday, the highest volatility in 16 months, according to Bloomberg data. Volatility is a measure of how far the price of a commodity such as oil deviates from average closing prices over a prior period, such as 30 or 60 days.
``When you've got such an active market, it's very news sensitive,'' said ANZ's Pervan. ``These markets can move quite sharply because you're talking about a higher volume game.''
Pre-Recess Vote
The House passed the measure just hours before recessing for a week for the July 4 Independence Day holiday, a time when members typically return home and meet with constituents. Rising retail gasoline prices, which averaged $4.07 a gallon on June 25 and reached a high of $4.08 on June 16 according to the AAA, have angered voters. Gasoline prices are up 34 percent this year.
The measure calls on the CFTC use its emergency powers to ``curb immediately the role of excessive speculation'' in any market it oversees in which energy futures or swaps are traded.
An emergency in commodity markets is defined as a ``threatened or actual market manipulations or corners,'' any domestic or foreign government decision affecting prices, or ``any other major market disturbance which prevents the market from reflecting supply and demand,'' the CFTC said in a statement yesterday.
The agency ``has never exercised emergency power based on price trends that have developed over months or years,'' the statement said. Emergency powers have been invoked four times since the CFTC was formed in 1976.
Task Force
The measure is ``not likely to be bullish,'' said Tim Evans, an energy analyst for Citi Futures Perspective in New York. ``You can argue that it may not be effective, but I don't know that you can actually argue that it's bullish.''
The measure needs to be passed by the Senate and signed by the president before becoming law.
The CFTC, which regulates U.S. commodity futures and options markets, said earlier this month that it formed an interagency task force to evaluate developments in commodity markets, including the role of speculators. The task force includes the Federal Reserve, the Securities and Exchange Commission, the CFTC and the U.S. Departments of Treasury, Energy and Agriculture.
The House defeated a separate measure mandating that oil companies produce energy from current leases or be disqualified from future leasing.
Brent crude oil for August settlement was at $139.50 a barrel, down 33 cents, on London's ICE Futures Europe exchange at 9:10 a.m. Singapore time. It rose $5.50, or 4.1 percent, yesterday to settle at a record $139.83 a barrel. Prices touched $140.56 a barrel, the highest since trading began in 1988.
To contact the reporters on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net; Margot Habiby in Dallas at mhabiby@bloomberg.net.
10:14 am - DJIA has one of the biggest fall since Great Depression 1929
I see high volume yesterday but I want to see a doji tonite before DJIA can reverse up. Else DJIA may go down some more or move sideway.
9:48 am - FKLI July really jump off the cliff
In coming weeks, FKLI is very easy to trade. Just short on strength. If there is strength today, just sell short !
Thursday, June 26, 2008
5:18 pm - FKLI has a bearish pattern - July contract
FKLI is ready for short tomorrow ! Short July contract !
2:51 pm - Once the rollover is over, our KLCI will give way
Sending our FKLI back to bear again. Think to short !
10:59 am : For those living in Penang - Bill Wermine will be in Penang on July 12, 2008
Dear Graduates of Bill's seminars,
For all of you who attended our programs I am coming to Penang and would like to renew our relationship and assist you on any thing or any questions you might have.
We are coming to Penang on Saturday 12th July and will have a graduates reunion at the Evergreen Laural Hotel. This is preceeded by an Investment talk with details below. It is free of change and includes refreshments. Our reunion is from 1 to 3: 30 PM and if you have any questions on any trading matter we are happy to answer them.
We will be organising an exclusive International Investment Talk on 12th July 2008. Our CIO, Mr Ang Kok Heng will share with us on how alternative investment can help to enhance your total portfolio. Details of the talk are as below:
Date : 12th July 2008 (Saturday)
Time : 10.00 am - 12.30 pm
Venue : Evergreen Laurel Hotel 53, Persiaran Gurney, 10250 Penang (See map attached)
10.00 am Registration
10.30 am Alternative Investment Opportunities Through Man Investment
11.15 am BREAK*
11.30 am No Qualms on Aussie $ !
12.10 pm MAN Weathers Through The Storms
12.30 pm Question and Answer Session
*Refreshments will be provided.
As seats are limited please let me know if you wish to attend with your name and telephone number..
Have a good week ahead
Bill
012 685 1207
For all of you who attended our programs I am coming to Penang and would like to renew our relationship and assist you on any thing or any questions you might have.
We are coming to Penang on Saturday 12th July and will have a graduates reunion at the Evergreen Laural Hotel. This is preceeded by an Investment talk with details below. It is free of change and includes refreshments. Our reunion is from 1 to 3: 30 PM and if you have any questions on any trading matter we are happy to answer them.
We will be organising an exclusive International Investment Talk on 12th July 2008. Our CIO, Mr Ang Kok Heng will share with us on how alternative investment can help to enhance your total portfolio. Details of the talk are as below:
Date : 12th July 2008 (Saturday)
Time : 10.00 am - 12.30 pm
Venue : Evergreen Laurel Hotel 53, Persiaran Gurney, 10250 Penang (See map attached)
10.00 am Registration
10.30 am Alternative Investment Opportunities Through Man Investment
11.15 am BREAK*
11.30 am No Qualms on Aussie $ !
12.10 pm MAN Weathers Through The Storms
12.30 pm Question and Answer Session
*Refreshments will be provided.
As seats are limited please let me know if you wish to attend with your name and telephone number..
Have a good week ahead
Bill
012 685 1207
9:34 am - A little bird told me that KLCI and FKLI wud stay firmed due to window dressing !
This mean the fund manager wants the KLCI to look good for half year closing of 2008 meaning KLCI has little downside until 30 June 2008.
9:24 am - FKLI showing sign of first sign of weakness
Be ready to short the July contract. Remember sell on strength. You can sell on the 2nd or even 3rd sign of weakness.
Wednesday, June 25, 2008
4:54 pm - FKLI is testing 1200 resistance again.
If DJIA closed higher tonite, FKLI will gap across 1200 tomorrow.
9:21 am - This is what I am looking for a doji for DJIA
Let's see if it wud bound up tonite for DJIA. The low pivot is at 11,725 level.
9:17 am - FKLI is still nudging along moving sideway !
This wud allow the institutions to rollover their contracts.
Tuesday, June 24, 2008
3:40 pm - FKLI is matching slowly allowing institutionals to roll over !
I see some pullback as FKLI hits 50MA at 1195. Look to long at lower prices 1185/1187
11:42 am - Trading Course review of Stuart McPhee
Very recently I reviewed one course by a respected trader, Stuart McPhee
from Australia (author of 'Trading In A Nutshell, 3rd Edition').
You may have even attended one of his workshops in Singapore or KL. Up until now,
the course I reviewed has only been offered to Stuart'scoaching clients and a few other colleagues of his.
In any event, Ihave arranged for you to gain access to a set of question and answersessions Stuart recorded as a lead up to the workshop I watched.
Originally they were for his clients however I really feel they will beof value to you.
You can download them here:http://www.tripletradingprofits.com/martin.htm
Please note: You don't have enter your email address or register todownload this material. The link above takes you directly to the download page. Please let me know what you think.
Best regards,
Martin
from Australia (author of 'Trading In A Nutshell, 3rd Edition').
You may have even attended one of his workshops in Singapore or KL. Up until now,
the course I reviewed has only been offered to Stuart'scoaching clients and a few other colleagues of his.
In any event, Ihave arranged for you to gain access to a set of question and answersessions Stuart recorded as a lead up to the workshop I watched.
Originally they were for his clients however I really feel they will beof value to you.
You can download them here:http://www.tripletradingprofits.com/martin.htm
Please note: You don't have enter your email address or register todownload this material. The link above takes you directly to the download page. Please let me know what you think.
Best regards,
Martin
10:23 am - DJIA is poised to move sideway
If there is a rebound, DJIA is going to form a doji first with a long tail.
Monday, June 23, 2008
10:13 am - A Good Article by Joe Ross !
: Are you a frustrated trader?
By Joe Ross
I hate setbacks. I hate to admit that, for most traders, setbacks are the rule rather than the exception. Finding reliable trading strategies is really a challenge, and often, after a whole lot of work, a promising strategy produces a loss. Losses and other setbacks tick me off.
YOUR ABILITY TO TOLERATE FRUSTRATION IS ESSENTIAL
Yet I know that winning traders cannot allow themselves to be fazed by these setbacks. Winning traders welcome challenges rather than hide from them -- at least that's what all the books say. To a certain extent it's true; your ability to tolerate frustration is essential. Because setbacks are real, it is important to have a specific and active plan for coping with them; otherwise they can build up psychologically and produce problems of chronic stress. I've been there, as have many of you.
The reality is that your mind and body have limited resources, and unless you cope with frustration and anxiety effectively, you'll eventually become exhausted. You'll lose your ability to focus and process information objectively.
However, all is not lost; don't despair. By taking a few specific preventive measures, you can build up your ability to handle frustration to the point where you can handle a series of trading setbacks.
ACCEPT SETBACKS AS A NATURAL PART OF LIFE
Do not make the mistake that people with low frustration tolerance tend to make. They believe that they should experience absolutely no setbacks. But setbacks are a natural part of life.
I've read that instead of thinking of setbacks as dreaded events, challenges and setbacks can be viewed as part of the excitement and stimulation of living. Man! Where do these guys get that kind of stuff? That's like someone telling you to learn to love losses. In all my years of trading, I've never learned to love losses. How can I love something that kicks me in the face? I have learned to tolerate losses, but love them? No way. And it's the same with setbacks. I will never learn to look at them as as an opportunity to learn and develop my trading skills rather than as a discouraging impediment. I have setbacks. I tolerate setbacks. But to me they are never something to get excited about.
The Pollyanna shrinks who tell you setbacks are an opportunity can say that only because they've never really traded. They say that merely changing your viewpoint regarding potentially frustrating events can change your ability to tolerate them. But it's hard to change your viewpoint. About all you can do with setbacks is to expect them and accept them as natural, and not as a disaster. If you can get that far, you'll feel less frustrated. And rather than passively feeling paralyzed by them, you'll try to creatively think of ways you can use the setbacks as a new starting point than can lead to a higher level of trading ability.
Setbacks are ways for you to gain more experiences with the markets and sharpen your trading skills, but don't fall in love with them. They hurt. Ouch!
PREVENTIVE MEASURES
There are things you can do to take preventive measures to build up your tolerance to frustration. The most important steps concern building up physiological defenses. It is difficult to cope with frustration when we are tired and worn out. By getting plenty of rest, and especially sleep, we can cope with frustration more easily. Regular exercise and proper nutrition can help your body create a natural defense against frustration.
MAKE A SPECIFIC PLAN TO GAIN PRACTICE AND EXPERIENCE
Once you are properly rested and nourished, you can also make a specific plan for coping with setbacks when they occur. In addition to accepting uncertainty and setbacks as part of your life, you should think in terms of the big picture. "Rome wasn't built in a day," and you shouldn't expect to become an expert trader overnight. You need extensive practice and experience. That can take time and money.
AVOID UNREALISTIC EXPECTATIONS FOR YOURSELF
Traders are frustrated when they set unrealistic expectations for themselves, and then fail to meet them. By realizing that it will take time to trade profitably, you'll feel more relieved, and you will anticipate setbacks. You won't be caught off guard, and you will be ready to deal with them. It may be discouraging at times to continually face setbacks. To cope with them, you may want to make a list of successful trades and recall them when you are feeling especially beaten. The key to frustration tolerance is to realize that, although external circumstances can interfere with your plans, you have the freedom to decide whether they will impact your mood. You can choose to feel beaten, angry, and frustrated, or you can anticipate setbacks, view them as growing experiences, and as ways to build your trading skills. The more you acknowledge that setbacks are a necessary part of trading, the more easily you'll cope with them.
By Joe Ross
I hate setbacks. I hate to admit that, for most traders, setbacks are the rule rather than the exception. Finding reliable trading strategies is really a challenge, and often, after a whole lot of work, a promising strategy produces a loss. Losses and other setbacks tick me off.
YOUR ABILITY TO TOLERATE FRUSTRATION IS ESSENTIAL
Yet I know that winning traders cannot allow themselves to be fazed by these setbacks. Winning traders welcome challenges rather than hide from them -- at least that's what all the books say. To a certain extent it's true; your ability to tolerate frustration is essential. Because setbacks are real, it is important to have a specific and active plan for coping with them; otherwise they can build up psychologically and produce problems of chronic stress. I've been there, as have many of you.
The reality is that your mind and body have limited resources, and unless you cope with frustration and anxiety effectively, you'll eventually become exhausted. You'll lose your ability to focus and process information objectively.
However, all is not lost; don't despair. By taking a few specific preventive measures, you can build up your ability to handle frustration to the point where you can handle a series of trading setbacks.
ACCEPT SETBACKS AS A NATURAL PART OF LIFE
Do not make the mistake that people with low frustration tolerance tend to make. They believe that they should experience absolutely no setbacks. But setbacks are a natural part of life.
I've read that instead of thinking of setbacks as dreaded events, challenges and setbacks can be viewed as part of the excitement and stimulation of living. Man! Where do these guys get that kind of stuff? That's like someone telling you to learn to love losses. In all my years of trading, I've never learned to love losses. How can I love something that kicks me in the face? I have learned to tolerate losses, but love them? No way. And it's the same with setbacks. I will never learn to look at them as as an opportunity to learn and develop my trading skills rather than as a discouraging impediment. I have setbacks. I tolerate setbacks. But to me they are never something to get excited about.
The Pollyanna shrinks who tell you setbacks are an opportunity can say that only because they've never really traded. They say that merely changing your viewpoint regarding potentially frustrating events can change your ability to tolerate them. But it's hard to change your viewpoint. About all you can do with setbacks is to expect them and accept them as natural, and not as a disaster. If you can get that far, you'll feel less frustrated. And rather than passively feeling paralyzed by them, you'll try to creatively think of ways you can use the setbacks as a new starting point than can lead to a higher level of trading ability.
Setbacks are ways for you to gain more experiences with the markets and sharpen your trading skills, but don't fall in love with them. They hurt. Ouch!
PREVENTIVE MEASURES
There are things you can do to take preventive measures to build up your tolerance to frustration. The most important steps concern building up physiological defenses. It is difficult to cope with frustration when we are tired and worn out. By getting plenty of rest, and especially sleep, we can cope with frustration more easily. Regular exercise and proper nutrition can help your body create a natural defense against frustration.
MAKE A SPECIFIC PLAN TO GAIN PRACTICE AND EXPERIENCE
Once you are properly rested and nourished, you can also make a specific plan for coping with setbacks when they occur. In addition to accepting uncertainty and setbacks as part of your life, you should think in terms of the big picture. "Rome wasn't built in a day," and you shouldn't expect to become an expert trader overnight. You need extensive practice and experience. That can take time and money.
AVOID UNREALISTIC EXPECTATIONS FOR YOURSELF
Traders are frustrated when they set unrealistic expectations for themselves, and then fail to meet them. By realizing that it will take time to trade profitably, you'll feel more relieved, and you will anticipate setbacks. You won't be caught off guard, and you will be ready to deal with them. It may be discouraging at times to continually face setbacks. To cope with them, you may want to make a list of successful trades and recall them when you are feeling especially beaten. The key to frustration tolerance is to realize that, although external circumstances can interfere with your plans, you have the freedom to decide whether they will impact your mood. You can choose to feel beaten, angry, and frustrated, or you can anticipate setbacks, view them as growing experiences, and as ways to build your trading skills. The more you acknowledge that setbacks are a necessary part of trading, the more easily you'll cope with them.
9:29 am - DJIA is certainly very bearish - "Hidden buying potential"
We may have a reversal bar tonite. Look at the ultra high volume from DJIA. I have not seen this for a long time.
9:09 am - FKLI gap down due to -200 DJIA overnite losses !
The FKLI is likely to move sideway or down for today !
Saturday, June 21, 2008
8:31 am - Stocks drop as credit woes continue, oil rises
Stocks drop as credit woes continue, oil rises NEW YORK (AP) - Stocks capped a difficult week with steep losses Friday amidescalating worries about the financial and automotive sectors and a rebound inoil prices. The major indexes fell by more than 1 1/2 percent on the day, andthe Dow Jones industrial average gave up more than 200 points to end at itslowest level in three months. While investors have seen other triple-digit days in the past year sinceconcerns about the economy began emerging, the Dow's first finish under 12,000since mid-March could deal Wall Street a psychological blow. An afternoon downgrade of automakers helped draw out sellers in the stockmarket while Treasury prices rose as investors sought the safety of governmentdebt. A Merrill Lynch downgrade of regional banks added to the market's initialanxiety, which ballooned Thursday when Citigroup Inc. warned of significant debtmarkdowns for the second quarter, Washington Mutual Inc. announced 1,200 jobcuts and Moody's Investors Service decided late in the day to downgrade the twobiggest bond insurers. Troubling news about the financial sector piled up all week, sending stocksto steep losses. Early on, the investment banks posted profit declines, FifthThird Bancorp said it need to raise $2 billion in capital and two Bear Stearnshedge fund managers were charged with lying to investors -- causing manyinvestors to flee from stocks. Quincy Krosby, chief investment strategist at The Hartford, said Friday'ssession saw a confluence of the worries that investors have been grappling withas they try to determine where the economy is headed. "I liken it to the GPS system saying 'recalculating,'" she said, referringto the market's uncertainty. "There's no clarity, there's no confidence." Krosby added: "The crosscurrents are coming at a time when the backdrop forthe economy appears to be stabilizing. And yet the headline risk isunrelenting." The headlines Friday helped send the Dow down 220.40, or 1.83 percent, to11,842.69. The blue chips haven't closed below 12,000 since March 17, when themarket was worried about Bear Stearns Cos. collapsing. Friday's pullback leftCoca Cola Co. as the only advancer among the 30 stocks that comprise the Dow. Broader stock indicators also dropped. The Standard & Poor's 500 index fell24.90, or 1.85 percent, to 1,317.93, and the Nasdaq composite index fell 55.97,or 2.27 percent, to 2,406.09. Declining issues outnumbered advancers by about 5 to 1 on the New York StockExchange, where consolidated volume came to a heavy 5.15 billion shares comparedwith 4.44 billion shares traded Thursday. Volume was heavy in part because of"quadruple witching" -- the simultaneous expiration of four types of optionscontracts. For the week, the Dow fell 3.78 percent, the S&P 500 lost 3.1 percent andthe Nasdaq declined 1.97 percent. Bond prices rose Friday as stocks sank. The yield on the benchmark 10-yearTreasury note, which moves opposite its price, fell to 4.17 percent from 4.21percent late Thursday. Concerns over further tensions between Israel and Iran added to investors'worries and pushed oil prices higher. "That introduces dramatic uncertainty," Krosby said of the investors'reaction to unease in the Middle East. Crude oil futures jumped $2.69 to settle at $134.62 a barrel on the New YorkMercantile Exchange, recovering some of Thursday's drop of nearly $5 per barrelon news of a fuel price hike in China. Investors are awaiting the weekend's meeting in Saudi Arabia of oilproducers and consumer nations, which could bring some relief to the problem ofsoaring oil prices. But many analysts believe the gathering might end up being amere finger-pointing session. The concerns made for a difficult market. "There has to be reticence about getting back in," said Stephen Carl,principal and head of equity trading at The Williams Capital Group. "It'sdefinitely an ugly end to the week." Bond insurer MBIA Inc. fell 86 cents, or 13 percent, to $5.59, whilecompetitor Ambac Financial Group Inc. edged up 2 cents to $2.05, after losingtheir "AAA" rating from Moody's. Another ratings move hit stocks of automakers. Standard & Poor's RatingsServices placed the corporate credit ratings of General Motors Corp., Ford MotorCo. and Chrysler LLC on watch with negative implications. The classificationmeans ratings have a one-in-two chance of being downgraded in the next threemonths. S&P believes high fuel costs will hurt the U.S. auto market through2009. GM fell $1, or 6.7 percent, to $13.79, while Ford lost 51 cents, or 8.1percent, to $5.81. The dollar fell against most other major currencies, while gold prices rose. The Russell 2000 index of smaller companies fell 12.10, or 1.64, to 725.73. Overseas, Japan's Nikkei stock average dropped 1.33 percent. Britain's FTSE100 fell 1.53 percent, Germany's DAX index declined 2.12 percent, and France'sCAC-40 fell 1.79 percent. The Dow Jones industrial average ended the week down 464.66, or 3.78percent, at 11,842.69. The Standard & Poor's 500 index finished down 42.10, or3.10 percent, at 1,317.93. The Nasdaq composite index ended the week down 48.41,or 1.97 percent, at 2,406.09. The Russell 2000 index finished the week down 7.88, or 1.07 percent, at725.73. The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted indexthat measures 5,000 U.S. based companies -- ended Friday at 13,415.89, down374.77 points, or 2.70 percent, for the week. A year ago, the index was at15,291.15. Copyright 2008 Associated Press. All rights reserved. This material may not be
Friday, June 20, 2008
5:12 pm - FKLI closed with a bullish finish !
There were volume for KLCI. I may think this is a reversal volume for FKLI too.
2:57 pm - FKLI is turning bearish !
It is reversing after an attempt to wash to long trader and short trader today ! Very volatile !
11:17 am - FKLI is ready to turn down after hitting high 1199
The market is very choppy in the morning.
10:06 am - Notice the similarity between the FKLI after a huge fall !
After FKLI fall drastically with a doji, it will rebound back.
9:14 am - This is what I am looking for ! A doji with considerate volume.
Look for a reversal on Friday trading for DJIA i.e. tonite !
9:00 am - FKLI market oversold and short seller covering their long position
Think to short at 1190 and think to buy at 1170. Else I think the market may range based on low volume.
Subscribe to:
Posts (Atom)
Posts
