Friday, August 1, 2008

Tweezers....... caution ahead

Firstly let me apologise to all who did come to this blog last two days and found me missing.... Work pressure -- just did not have time to sit down and see the markets. I could leave just a line last time and was happy to have been right that time. Well - it is not that I have time today - but just got up early and wanted to fill in for today. Then for the weekend - will just sleep.

Before I talk about the world markets I would like to talk about the Nifty Candles. The candles have made a tweezers formation with jul 28 and jul 29 th. This formation if not broken with force then might act as a resistance and push the markets down. So I would per-force start with a word of caution. But apart from this most of the indications remain to be bullish. RSI is still bullish, MACD is bullish with the red line above the blue in the comfort zone. TRIX is still looking up - On the SlowStochastic the red line has yesterday managed to crossover into the positive territory and looks good. We have moved on to the upper side of the Bollinger band and that too is good news as long as we trail the upper edge. jaggu says that the TRIN is neutral - that is the second bell that rings in my mind.

The sob part of the story begins now. The data that has come out in US is again not encouraging and that made the US markets tank pretty badly. The Europe before that had closed flat - but the net effect on Asia is that it has opened deep red and is trailing down. So those who took good gains in the past few days rally may book to enjoy the weekend. And my view remains the same - if we do not break these two tweezers then we too are going down in red taking all the bullish indicators for a swim. The fact remains that by the time the trailing indicators start showing red we would be swimming in the Red Sea upside down. Had I been you - I would remain short - or atleast hedged for next few days.

Best of luck to all.



geniusjaggu said...

hope u know to swim,since u can atleast keep me afloat.. ;)

yes breakout level is days away from present,i think mkts will go to 3600 and then break out from 4200 levels... since mkts are unable to cross (the present 4500) breakout levels...

S S Cheema said...

What good news is driving the markets up now?

geniusjaggu said...

its absence of bears which is driving the mkts :)

chalo sab bacche log,jaldi se scooter par baith jao

Amit Kumar said...

Cheema Ji,

I am a great fan of your views and regularly follow it. I am trying to decode the modus operandi of FII which is there for all to see. Pls refer to my post FII's - The Open Secrets You Would Like To Know and share your views.

Eagerly awaiting

S S Cheema said...

Dear Amit,
Thanks a ton for the kind words - frankly I am sure that I do not deserve them. I would rather classify myself as a new kid on the block.
I will surely visit your blog and keep in touch. Your blog is part of my blog roll.

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