26 May 2010 11.32pm DJIA opened higher at 100 point+ at around 10149 in respond to strong U.S. economic data and oversold position. It is still to early to predict FLKI tomorrow. Got to wait till tomorrow morning and see how DJIA closes.
Although it is a good sign that DJIA now trading at positive territory, my view of a bearish market still remains.
27 May 2010 8.31am
The Dow Jones Industrial Average closed lower at 9974.45 breaking the 10,000 points first time in 3 months despite opened higher at 10149. The economy outlook does not augurs well for the coming months. Bearish news come one after another with the latest being China may lower its Euro investments. Although such news is bearish it is not expected to impact the world economy greatly. The drop in Dow Jones is an accumulation of bearish news over the past few weeks from European debt crisis to North/South Korea tension and now to China’s Euro investment reduction.
As long as bearish news continued to pour in, the FLKI will not be able to trend upward far. My strategy is still to sell on high and avoid overnight long position.
If you are trading FLKI, good luck and trade with care.
5.30pm
My prediction of downtrend was completely reversed. The FLKI went up aggressively and closed at 1278. My short position of 1258 was stopped loss at 1275. It is a big setup to my investment. Although the FLKI went up aggressively today, my view of a downtrend still remained.
I believe the up surge is only temporary and will eventually reversed when the correction is completed.
