Friday, October 24, 2008

Welcome to the new dawn....

Or Dusk .. the dawn part is my wishful thinking. Well we were not wrong to have guessed a recovery yesterday - so many reversal signals that I had to respect them - but to hold at those levels with the cash rich bears - well that is a different story itself. I will not be able to comment on why we went lower - I really do not know nor see them. I also think that nothing really is mattering in this rot that has spread in the system - it will take its own time and reason to come out.

Well the Asia closed red yesterday - and we were the part of that closing. Europe opened Green and went down deep red but recovered somewhat by closing. FTSE was finally up by 1.16% on closing, Dax down 1.12% and CAC up 0.38%. It is however US's turn to behave confused and not know what signals to take and what to filter out. Dow opened flat went red climbed well into green to touch days lows and then once again close green/red - depending on which index you are seeing. Dow was up 2.02%, Nasdaq down 0.73% and S&P up 1.26%. This confused state of US has failed to cheer the Asian markets and they started the last day of the week with a red bang. Nikkei is down 4.11% and Strait Times down 2.37%. Now the question - will they recover and help us recover or will we recover and help them come off the days lows?

On the candles there is a second black candle of almost the same length of the last one. Another one will sort us out as the pattern that can now be made is the "Three Crow Pattern" That will not be good and I am praying that it does not do so. What I suppose it would or should happen is that we should open lower taking cues from the Asian opening and then steadily recover - if that be so then we may have a white candle and that would be really great. The Bollinger bands are of the same width as before. 5EMA line is still as below the 20 EMA line as earlier. The volumes were fairly high yesterday. The MACD divergence has increased and Mas Index is now below 27. I will spend the week end on Mass Index and try to ask it - what it is really intending to indicate. RSI has once again dived down in the oversold level. TRIX continues to look down. MACD red and blue lines are virtually overlapping and below the 20 marker - it has now been there for more than an average time it is seen below the 20 marker. It needs to get out of this situation soon.

There is nothing much to say or do. As I am about to put the blog online the Asia is in red - Nikkei down 4.33%, Hang Seng down 2.05% and Strait TImes is 2.89%. Best of luck.

Hey someone has rated last post as five star that said I will not be able to Post an update yesterday - am I hated so much that not able to post is being taken as a welcome relief? RFOL

Investigation complete - that was my dear pop giving me a five star rating on the last post - LOL



Anonymous said...

Cheema: looks like the breaking of 3000 level triggered stop-losses enmasse. Truth is today I also made an ass of myself. Didn't expect it to fall below 2660 so I got out of my strangle, went long with SL 2600 at around 2680. Dang! What were to be my profits turned into my losses. lesson learned!

Uma said...

Cheema: Foreign currencies weaken, USD gets stronger?! Why? And Why is Dow suddenly stable? ;) Oh man, I have a conspiracy theory and according to that theory...Dow will close green today.
Or maybe not... ;D

S S Cheema said...

Conspiracy theory? I know we actually have nothing else to do now! markets are out of the preview.

Anonymous said...

Yeh I agree! I don't want to be in market right now. Money isn't easy with options too expensive. But wait...I will ride the next bull run to glory....yeh yeh...I will just keep an eye on Infy results in coming quarters...if they can make a living so can I...cause they make things that don't work...and if they can make money anybody can. uma

Anonymous said...

Happy Diwali!
I think exhange is closed tomorrow (Tuesday) just check.


S S Cheema said...

Uma on Diwali there is just mahurrat trading - should be an hour or so - I will try to find out the time.

Uma said...

6:15 - 7:15 mahurat trading

Your whole family is conspiring against you cheemz!!

S S Cheema said...

Yes Uma the disgustion shows - someone had earlier rated the article as 1 star. You have not down rated me - you have got my earlier average of 4.33 to 4.5 - LOL
thanks as always