Tuesday, July 22, 2008

Bulls will be what they are ............ Bulls

They will ordinarily not see the dangers that lurk in the open waters. will the sectors that were left out for past few days join up the rally or is this rally about to finish? NO straight answers. Well there never were. IT is one of them. the other - healthcare took part yesterday - let us say in a half hearted manner.

Europe yesterday ended green with half a percentage point. FTSE was up by .52%, DAX up .66 per cent and CAC 40 .65%. US closed flat but with a red bias. DOW was down .25%, NASDAQ town .14% and S&P 500 down .05. Asia too has not opened very encouraging. Hang Seng is down .22 per cent and seems dropping, Strait Times down .76% and looking bad. Nikkei is the only bright spot that is 1.29% up and does not, at least for now show signs of going down. so overall not very encouraging from the world markets. after all, the run-up quite a bit and in a fairly short time.

On the candles -- yesterday was a third candle which was white and that looks good. It can be classified as three white soldiers that should ideally take us up some more. But the X-factor -- the political front will continue to bear heavy and is likely to keep the market is highly volatile. Surprisingly the volatility was missing yesterday. As of today all the major indicators are bullish -- but the markets as we know hardly follows the indicators alone. Incidentally we're now very near to the 4200 levels and that can become a landmark from where the fall begins. Remember Jul the 11th? That was the day and that was the level from where we started falling to 3800 levels. If we fall now - 3600 levels are achievable. There is still no clear indication whether the government will survive or fall. That will have a bearing on our markets whether it is for good or it is for bad. another indicator that I would like to point out is that StochRSI is over bought -- what it may imply is that though the RSI is bullish it may take a breather.

Have a wonderful trading day. Personally I would see the fall starting today.