Monday, August 4, 2008

We did it........... once again

we did it once again. While the rest of the world bled in red, we made our mark in green. Like I had written, the tweezers top had to be broken with force for us to go green-- and that it is exactly what we did. Initially the markets were in red but eventually we went green -- breaking the tweezers top. Why we really did it is a mystery to me. Asia was bleeding, Europe was bleeding and so did US later. so much so that Europe was down more than one per cent on an average and US close down are little more than half a per cent on an average. Today as we stepped into a new week the Asia opens in red and looks down. Where do we fit in all this? Are we strong enough to withstand yet another onslaught of the world markets? how many of our fundamentals have changed since last few days? But then who said the market follows fundamentals? I didn't! No don't get me wrong I used to think so but I no longer think so now. Markets have a life of their own and the follow their own mind.

All the indicators that I have been quoting for past few days remain to be bullish. RSI is good and green, MACD is bullish, TRIX is looking up and so is slow stochastic. ADX is bullish. And today the only word of caution comes from jaggu's TRIN apart from a red opening in the Asian markets. I have been shouting caution on so many past days that I am afraid to do so today -- but believe me even at the cost of repetition and feeling embarrassed for not being right I still maintain that the market might not sustain this uptrend till the time we've broken past 4525 levels on nifty and if that be so then 5000 may be achievable in the near term.

a red opening under the present circumstances of Asia opening deep red and maintaining red is a certainty. I feel that today we may open red and remain red for the session. I see no reasons for the recovery to continue beyond the present level. but then like I said markets don't really listen to me. Best of luck to all and remain on your toes.

One more thing - If we do cross the 4525 and remain above then the longs is the way to go and we may be 'out of the bear woods'