Monday, September 1, 2008

In an absolute nail bitting drama ..... we choose bulls

In a wonderful action cum suspense - the stock markets decided to say - enough is enough... bears do not make too much sense and decided to inch up. there were factors - but most was on will power. See oil cracking down to 111 dollars yesterday? Well it is 111 dollars almost. And this factor alone can take us comfortably to good opening. But the point thereafter would be remaining there. Will we?

On the international front - Europe closed down but not out - I mean that it started out flat and ended flattish red. (WOW to my choice of words - Flattish red) FTSE was down 0.60%, Dax down 0.01% and CAC down 0.23%. The US remained closed - so they really missed a day where they could perhaps would have moved up green - with Gustav loosing its hold and Oil falling down to around 111 dollars. Todays Asia opening coupled with our opening will therefore not e dictated by US. Asia has already opened and Nikkei after its initial red tick has moved into the green territory and Strait Times after opening green has lost a few points but still in green.

With the flattish close yesterday we almost made a dragonfly. Well I say almost as it has a small upper wick and a shaved off head would have been more preferable. Any way the dragonfly is a bullish sign and in all its good sense likely to carry us higher today. MACD divergence has reduced further and in all the likely hood - red line should cross over the blue line today giving us a good positive session in comming day. I also say this because the redline - though trailed below blue line was lacking the kind of conviction that we have seen in the past falls - but that is if we have a green run today. The RSI has turned flat at 50 marker and can be considered as a good politician - will take the sides of the winning team. SlowStochastic is bullish and TRIX - after looking down for so many days has stopped looking down with the steep gradient - but still is bearish. Mass index still says that bulls have a field day ahead of them. StochRSI is in oversold territory.

The markets may open positive and remain so throughout the day - green. So have a ball today. Cheers.

Events - Reddy goes, OPEC meet around corner, fuel price slashing on the cards, Singur...