Tuesday, July 8, 2008

I smell the rat............ Do you?

With the declaration of the withdrawal of support by the CPM - why did the markets not crash any more than what they did? Have we discounted the news? No I do not think so. Going by the logic the fall should have bee much more severe - but the today's 41 points cut is just not enough especially with the TRIN saying otherwise. No I smell the rat - expect the unexpected - live each day as nobody's business.

Any way the good news first - Oil has fell as Jaggu had said and the markets world over are rejoicing. DOW up 1.36%, Nasdaq up 2.28% and S&P500 up 1.71%. Asia has taken the cue and as I write this The Nikkei is up almost 2%. rest are yet to open. The markets closed confused and the major reason that was there was the political concerns. With these concerns out in the sense that govt will surprise and the cat being out of the bag should see our markets soar for some time to come.

MACD red line should cross the blue today and that signals "press buy", SlowStochastic both red and blue lines are above the 50 marker and gave buy as of yesterday. TRIX is no longer facing down. StochRSI above 50 marker again - so expect RSI all indicators are fairly bullish.

Like I had said a few days back too. The Fabonacci Retracements from the high made on 2nd may and the low made on 2nd july - the 38.2% is near the 4400 mark - so be ready for a party. I feel that is the level we should touch inspite of all the troubles we have home and the we see where we go from there.

Enjoy the ride for all that it is worth. Ahh and just by the way Strait times too have opened in Green and is now 1.24% up. Inspite of this if some unexpected political development takes place - keep some shorts in place at higher level to support such news.