Thursday, June 5, 2008

What will the markets do today? ...GOD knows

Even if I see anything positive at all in the markets today - I know that it would be extremely difficult to spell it out after yesterday's beating I took. It is sad but true, the markets remain to be driven only by operators who in turn drive sentiments by harping negativities again and again on the idiot box and any other forumn they will get. Times are bad, but then not so bad to see the kind of hammerings that we had yesterday. I read somewhere that there are no support levels -- I have started feeling so myself. The market falls through one level to another like a hot knife in butter.

Where do we go from here? 4000? 3500? your guesses are as good as mine as would be of anyone else. Before I go any further I would like it to be very clear -- that firstly there is no earnings involved of any kind in posting this blog -- I do it to satisfy my ego -- so when you read it -- take it with a pinch of salt.

The situation is such that every recovery will be met with creation of fresh shorts and recovery will become more and more painful. That holds good not only for us but for every other market.

Without wasting time I will quote what jaggu says about TRIN I quote "TRIN:.Daily:0.4..(Overbought...bullish...hey dont be in hurry to buy,bullish means there will be LESS SELLING pressure)"
Beleive me I depend a lot on TRIN and if it says it is overbought -- please do see it in good sense. It works. After yesterday's firework the logic says that some sort of bounce back (whether it is called dead cat bounce or anything) is due -- but except TRIN and RSI there is not even a single indicator that I chart or use that says so. RSI is now oversold that supports a pullback. Those who could take positions yesterday before close may gain hansomely and as advised time and again by Uma - talk and eat small profits. Hold on to cash. Time will come for eating bigger profits if you survive these times.

Best of luck to all -- aah and yes 4469 is where we make a double bottom and I expect some support (if it is not peirced like yesterday)