Friday, June 27, 2008

D.... DO.... DOW.... DOWN - Namkaran Ceremony required.

There's just no way that we can survive an onslaught of the world markets behaving the way they are -- way down in the red. don't even think that you will open the Yahoo Finance page now and see the world markets. There is nothing much to see, I'll summarise it for you. FTSE 100, DAX and CAC 40 were on an average 2.5 per cent in red. US decided to show the way to Europe. It opened red and kept on slipping into red deeper and deeper and deeper. Finally DOW closed 3.03% down, Nasdaq down 3.33% and S&P 500 down 2.94%.

In Asia as of now Nikkei is trading 2.13 per cent down and Straits Times is down by 1.87%. I don't think anything else is required to predict the day-today. There is no way that we open in green at least. In addition to all this my most favourite and so far the most reliable indications --jaggu's TRIN and the TRIX are now hopelessly bearish.

Though there is no need now to spell out the rest of the indicators but I'll do so anyway. MACD's remains below the blue line - screams bear, but divergences reduced.RSI and slow stochastic should have ideally been taken as a buy signal but today -- I don't know what to say. Surprisingly the StochRSI is in the overbought territory. I really don't know what to make of it. With RSI and slow stochastic both being at the bottom and StochRSI being at the top -- if anyone can make out anything out of this please do let me know.

With all this -- the open is red-- try recovery -- we may, just may close in green. Of course the Europe's opening will also play a very important role in this. I say this because for the time being the political turmoil has been rolled over or some other day. Best of luck everybody-- as always.

A little better day in the world markets might have helped the hammer it made the day before to reverse the trend, but now? I just don't know.