Tuesday, June 3, 2008

Ring a-ring o' roses,

Ring a-ring o' roses,
A pocketful of posies.

a-tishoo!, a-tishoo!.
We all fall down.

Weakness -- weakness and it was waiting to happen all the time. It was just a matter of when would the crash would happen.

Okay let us start with the crystal grazing...
... well nothing really to talk home about. All the indicators without exceptions show weakness.

Let us kill the bad news first... The candles are extremely bearish. MACD, RSI and StochRSI down and trending down. TRIX down and jaggu says that the TRIN is bearish. What else? nothing to cheer the markets on home front and world markets down in the drain. US closed down on an average 1.05 -- 1.5 % down and asia opened in red. So there is virtually blood everywhere. where does it leaves us?

A bad bad state and downside may be more and bad. The 61.8% fabonacci Retracements was broken with ease -- and it does not happen everyday. the reason to it that i think was the strength it built in the last few days were bulls could not do a damn worthwhile. The "Three Black Crows" are cawing loud.

Any ray of hope? Sorry to say but none in the near horizon. However some factors that are likely to bring some mid horizon cheer... StochRSI below 20 and will generate a buy signal soon. It is depressed for too long (except a small relief of a day on thursday and friday last). Volumes on nifty were below average. (I do not really track volumes .. but that is what charts show). There has been a candle that has gone out of the bollinger band and it is difficult to sustain trend outside this band -- so even if it drops -- it may trend within this band. Lastly, if the market closes above 4805 - 4810. there will be a reversal -- on the cards. I am actually hoping that the pattern made is piercing pattern.

All now depends upon the opening, trading and closing today.

Those with shorts ... continue, those with longs just exit and be on sidelines.

Best of luck to all. And with all this fairly accurate reading of the market .. I was long and could not exit as of yesterday .. hope i get some opportunity today.



Anonymous said...

Now tht the closing has come... What's your take for tomorrow?

geniusjaggu said...

arre mian,
trin for 4 june is 0.85(which is bearish one) ;)

psssssh:i m giving trin in advance bcoz,so tat u can post analysis in advance than me....since i have to put dow(my love)chart also..