Wednesday, October 28, 2009

Looking at the BIGGER Picture, FCPO and Soya Bean.

I am still wondering how reliable of FCPO uptrend so far as its rival instruments are heading for a downturn. Will it share the same fate ? Frankly no one can accurately tell you this because it is yet to happen, what I can say here is the possibilities for FCPO to receive the same fate as soya bean has increased. This is due to these commodities are somewhat correlated to each other and why it is correlated u might ask ? Simple, it is because of mass psychology and most people in the street think so, not because they are theoretically prove by research paper or some noble prize professor said so. U see, markets are the central places for peoples like you, what we called the buyers and sellers, not noble prize professor. Market simply mean, all the buyers and sellers that decide to come out and play. When you pull trigger, the next thing to do is wait for it to hit you target. You will be either get out with profit or the market stop you with a loss! Don't bother to get out if the price suddenly spike or go against you right after you enter the trade. If you do that, you will end up with premature profit or premature loss, you will watch your trade turn around and move in favor to you hundred points!!! Ok, enought talk, let see what I mean above.

Soya Bean Futures Daily Chart
Alright, series of lower high, MACD death cross, Vol pick up in line with the downtrend.... Looks like soya bean price is likely to go down further at the moment. If you like news, I bet more negative news is coming too. Now, lets take a look on soya bean oil, the big brother of palm oil.

Soya Bean Futures Daily Chart
Well, I dont think I should repeat myself. Now, you saw what both soya bean and bean oil charts, what do you think it will be going to happen to palm oil ?  Scroll down to read more...

FCPO 3rd Month Chart
Ok, now do you think all these commodities is correlated in long term ? You should be able to answer it on your own. Why you should answer it on your own you said ? If you are a day traders, all this might not be relevant because you are looking at different chart, how quick you re-act to news and most important of all, your trading method
and money management is totally different !!!! When it come to trading its all about you, because it was you who decide to pull the trigger, it was you who reap millions from the market and it was you who blew up your account not because of crappy commentary or trade recommendation made by some one you barely know or any insider (yeah right, insider) information that you think the chance is too sweet to pass over. Ok, enough said, its time to trade, my long set up is about to trigger. Happy trading guys, stay sharp and follow your rules !!!
Disclaimer: The author is not liable for any loss incur due to this write up and trade recommendations made by this websites.


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