31st August 2006

The 2007 Budget will be on tomorrow. As indicated, this budget is designed to stimulate the economy which has not been that great for the average person this year.

August has been a great month for the market. I suspect it was held up by government linked funds to make the budget and the Government looked good.

And now I shall reveal my Interactive Strength Index (ISI) forecast for September 2006.

I expect the market to continue to move up till Wednesday 6th. Thursday and Friday will see the market correcting sharply in anticipation of the next week’s steady move up.

If you are into Index Future trading, buy on Friday’s low.

Cover you long on either the 18th or 19th of the month. ISI indicates that these two days are highs for the month.

Please remember that Puasa starts on the 26th if I am not mistaken. Generally the market quiets down for the Ramadan Month. We shall see.

So you have it.

To summarize the ISI forecast for Sept:
1. Market will move up on Monday till Wednesday.
2. Thursday and Friday will see the market sharply down.
3. Market will recover the week after from the 11th to the 15th.
4. The high is likely on the 18th or 19th of the month.
5. Market is likely to drift downward in anticipation of the Ramandan month after that.

Happy Trading.

Invest wisely and always remember the golden rule in Future trading, cut your losses when you are wrong.

28th August 2006

The coming budget announcement on 1st of Sept, coupled with the Merdeka Day celebration pushed the index through 950.

The buying of the heavyweight index linked stocks by government linked investment funds to keep the index up is nothing new especially it is before a major budget announcement.

I will be releasing my ISI chart for September in the next few days.

I will give you my view of the market after the budget.

At the meantime lay low and wait for the budget announcement.

21st August 2006

I predicted the high the KLCI on the 14th August and it was spot on. The sharp fall did not eventuate until the 16th. The market recovered slightly the next day and since then has moved sideway.

Kuala Lumpur Future Index picked up steam to close at a 1 point premium to the Composite Index last Friday. Now this is interesting.

Are the big boys holding up the market for the Merdeka Day celebration?

My Interactive Strength Index (ISI) is predicting a sideway movement for this week. The low is likely on Wednesday the 23rd.

I still predict a low on the 30th of the month, Merdeka or no Merdeka.

Happy Trading.

18th August 2006, Friday morning

Well the KL Composite Index dropped to 937 on Wednesday but on Thursday morning it received buying support to keep the index up.

I am going to change my Feng Shui RSI to just ISI.
ISI stands for Interactive Strength Index.

I find ‘interactive’ is a better word as the ISI is derived solely from the interactions between the elements of the year, month and day. Unlike RSI which compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions, ISI looks at any day in the future and by examining the interactions of the various elements, predicts whether it is a up day or down day. With ISI you can forecast the markets months ahead. This is the beauty of the ISI system.

Anyway, back to KLSE. ISI predicts the CI to test the Wednesday’s low of 937 again.

Daily RSI has broken 80. It is a sell. Parabolic is giving the sell signal. MACD, Stochastic are all indicating sell.
Let us see what happen today.

Happy Trading.

As always quoting the I Ching, those who know make fewer mistakes.

15th August 2006

Today is crunch day.
My Feng Shui Relative Strength Index is forecasting a downward correction.

Yesterday’s close on the Kuala Lumpur Stock Exchange Composite Index is no surprise. Last Saturday, I had said that it would test this point again and when it did you should look at selling.

The index future moved up to close the gap at a discount of less than 5 now. This is interesting. It looks as though the future players are gaining confidence about the market. Then again this could be a ploy to get people to buy. We shall see.

Daily RSI on KLCI is turning upward. If you are a cautious player, wait for it to cut down below 80 before you sell.

Happy Trading.

12th August 2006

Trading Index Futures (Kuala Lumpur Composite Index) for Profit

Yes, the week’s predictions were pretty spot on. The Kuala Lumpur Composite Index did not make any sharp move downward but instead inched upward and side way.

The firework will come this coming week.

My Feng Shui RSI is indicating that the Composite Index will try to test the high of 946 again. The fall will come after.

As for you traders, Monday is a time to short on the high.

Daily RSI is going to cut through 80 heading downward. If you are a cautious trader, you may want to wait for this to happen.

If composite index suddenly drop below 938, start selling.

BUT, always remember the Golden Rule. Set a cut loss point just in case.

Happy Trading.

Those Who Know Make Fewer Mistakes.

The key word is fewer. No one is perfect.

Date: 10th August 2006

The KL Composite Index is holding its own although the signs are indicating a correction.

Kuala Lumpur Future Index showed signs of weakening when it was not able to breakout through the 938 mark.

I bet the future index will give us a guide to KLCI’s fall.

Once the Composite Index starts to fall, it is time to sell.
At the moment, both RSI and Stochastic (slow) are giving sell signals.

My Feng Shui RSI chart is indicating Composite Index may still move sideway till the 14th of the month.

Happy Trading

N.B. One trading tip, always key in your cut loss point when you enter a contract. This way, you protect your losses and you will not be affected by the daily swing.

Date: 8th Aug 2006

Trading The Kuala Lumpur Future Index
Kuala Lumpur Stock Exchange (KLSE)

Judging from yesterday’s close of The Kuala Lumpur Stock Exchange (KLSE) and from a technical point of view:-

Both RSI and Stochastic are giving sell signals.

MACD and Parabolic SAR show the weakening of the market but the signals are yet to be confirmed.

KLCI has its support at 928.

From my Feng Shui Relative Strength Index (FSRSI) forecast chart, it is still not a sell yet.

Patient is a virtue.

Trading The Kuala Lumpur Future Index

August Forecast using my Feng Shui Relative Strength Index (FSRSI)
By Chow Fong

The FSSI system of prediction is based on my 8 years of research into the movement of the Kuala Lumpur Stock Exchange (KLSE) Composite Index (CI). I have found a strong correlation between the movement of the Composite Index and the interactions of the elements of the day (Heavenly Stem and Earthly Branch) with the Luck Cycles of the year and month. The formula which I derived at is complicated to explain but easy to use. It is not my intention to reveal it to you but I shall periodically give my predictions on the KLSE Composite Index movement so that you may profit from trading on the Composite Index future.

The system works best when you possess other Technical Analysis skills. I can tell you with reasonable accuracy of the high and low of the month. If these points coincide with your buy and sell trigger signers, make you move immediately.

Happy Trading.

P.S. Marty Schwartz’s best advice for the ordinary guy trying to become a better trader is “Learn to take losses. The most important thing in making money is not letting your losses get out of hand.”

Think about that.

Extract from the I Ching:

Those Who Know Makes Fewer Mistakes

August Forecast KLSE Composite Index Movement

Market will move up from the beginning of the month and it will reach its high on 14th August.

Buy now as you can still make some money and think about selling at the middle of the month.

Middle of the month will signify to end of this upward run.

The low will be at the end of the month

By the end of August, I shall again give you my view of the market for September.