Monday, June 16, 2008

Welcome to a new week...

I see positives in the begining of the week -- how we end -- too far away to decide yet.

Why would I say this? Let us start. Dow closed flat, Nasdaq was up 2%, S&P500 1.5% up. Europe was confused but in green. Saudi is set to increase oil output and this will give a breather or even bring down the oil prices in near term. Reliance results were good and so will be of many others. The advance tax nos should give a boost to the markets and there is little likelyhood of any surprise that will now spring out of the closet. Well that's how I see it -- I hope that this is how it pans out.

The candles -- though still giving mixed signals are now inching towards a positive note. MACD divergence is reducing and may turn positive in a few days if all goes well. TRIX has hesitated a wee bit to continue going down. StochRSI crossing over to bullish arena. Stochastic fast line is confidently above the slow line and remains good.
The bad part is that RSI remains bearish and the irrefutable -- Jaggu's TRIN says bearish. Purely seeing the candles the opening on friday was lower than the Thursday's and so was the closing. That's not particularly encouraging but the good thing is that the body was small -- probalbly meaning that the bulls have not given up so far and may try a bullish breakout.

And seeing many index heavy stocks -- they look bullish on the charts frm short term perspective. So best of luck for the week. Hope for a good Monday.

Rest -- the opening will depend upon the Asia opening that has had no negative news over the weekend and should ideally start on a positive note -- taking cues of green closing of US.

People -- there was an article written by Uma on Position Sizing and Setting stop losses. I feel that It is a wonderful thing and a must for anyone who has to do anything for trading stocks. Unfortunate for us it is very difficult that such articles/explanations are available in such easy to read with examples of indian stocks. Please do leave your mail ID and I will mail you a pdf copy of the article. (still waiting Uma's permission to distribute the same though - that I am sure will come)



Anonymous said...

Could you please send me the pdf article.I am interesting to read........Thanks

kpravee at yahoo dot com


Uma said...

Cheema: No you cannot distribute the PDF, sorry.

S S Cheema said...

roger Uma -- as you say

S S Cheema said...

Sorry guys and gals -- I will not be able to send you the file as it has been refused by the author (Uma).
The links to the topics mentioned are however available in my last blog and you can visit here site and read them.
Asia -- well in green as expected.