FKLI 24th July 2009

As yesterday,
Short position established@ 1155
stop placed at 1060.

Results:
3 safe, 0 con, 5 losses, 2 win.

FKLI outlook:
As expected, FKLI rebound 1 more time.
this formed another new high, higher top at 1162.5.
but also formed a diagonal in the 15 min charts.
i should short once break down from the support trend line but i follow my plan, short at break support at 1155, low of previous doji.

Based on wave count,
yesterday complete wave 5 with special diagonal formation.
there is 1 insignificant possibility that FKLI might test new high tomorrow. have to depend on Dow Jones performance tonight.
if Diagonal is confirmed complete, then we are looking at 2 possibility
1 major sell down and 1 minor sell down.

Strategy,
If FKLI gap up >1164+ 3 points higher, all short position must clear at any price.
If FKLI gap up > 1160, short position covered after 15 min bar closed above 1160.

If FKLI < 1154.5, wait 15 min, if closed lower 1154.5, short, cut loss at 2 previous 15 min bar high + 3 points.

If FKLI < 1131.5, diagonal formation complete, short after 15 min bar close below 1131.5, cut loss at 2 previous 15 min bar high + 3 points.

Monitor,

Dow Jones closing.

Thursday FED governor Tarullo gives banking regulatory testimony to the Senate.
Weekly Jobless claims are released, along with Existing home sales and the UofM Consumer sentiment reading

Sunday FED chairman Bernanke is hosting a town hall event at the Kansas City FED.

Nikkei Opening.