Friday, June 6, 2008

Come join the party...

After being beaten physically and mentally -- the bulls are gathering strength to rally again. All this is on the back of some data perhaps that comes out from US. The data swings even more wildly than our politicians statements (and I thought the worst is here). Job claims good.... no wait bad... housing demand good.... ! ... wait did I say good? Bloody &^%##@ they change thier statements every hour. And our good old markets swing to their tunes like a snake to the snake charmers tune. It is so bad that I can just get up in the morning -- see how US closed, Asia opened and say --Ohh We will open positive.

That's what it is... a definate positive opening. Then what?? okay ... some trailing indicators are turning bullish. If we take a period from 2nd Jun to 5th May then see the high and low made by the market... the first acheivable target of 38.2% fabinocci retracements is around 4820 levels. Remember it was a support some time back? Well it is likely to be a resistance now but with all other factors constant the market should reach this level in next few days.

The candle yesterday has made a Peircing pattern that too shows the bear momentum loosing to bulls. This was the pattern that I was hoping to be made for last so many day, well it did so yesterday and that is good -- after all this wait and beating by the bulls. Three other signals giving buy. RSI, Stochastic and StochRSI. Infact the StochRSI -- has been at Zero line and should now cross 20 marker in next few day. The other signals may also become better than present by then. Mind you the volumes have been better than last three days when the markets fell down the hole. Unfortunately -- TRIX -- the so called leading indicator remains subdued and the MACD does not seem good even as the divergance has reduced a wee bit.

I will close this babble today with Jaggu's TRIN -- we are bullish.... and by the way -- we did not test the 18th Mar low of 4469## some other reason to celebrate...... ........Cheers



Rajandran said...

Bubble is moving upside without the knowledge of needle in the ceiling.

S S Cheema said...

The problem is that there are needles both sides -- Up and down.
And guess what -- both prick

Rajandran said...

Any How Its time to change the Kid
to Donkey's Face Once Again.

BCoz Game Over!!!

Mahendra Naik said...

Nifty looks extremely weak. One can only hope for a double bottom to form at around 4480 and then rebound. Else all hell' going to break loose.

Rajandran said...

No means of holding 4480.

Once the technical pattern fails market lost its stability.We will meet the lows sooner and faster.

lets see

Uma said...

nice analogy. Needles on both sides. Hows your folks, u still on vacation?

S S Cheema said...

All well Uma except the markets. Yeah on vacation till 19th of this month. I agree -- no technicals can work now.

Uma said...

I know...only long term buyers can make any money now, that too, on hopes that FDI policies will change at center.