Monday, November 10, 2008

So the shorts did not work today ... I wonder why....

I am back in the middle of my night flying phase so the late update to the blog. So many were tricked with that one days downturn to be short? It is not only a difficult but also a dangerous game to predict the market. The markets were good yesterday - be it Asia or Europe. Now after this white candles daily - I feel that we should have a break should not be carried overboard. A break/a consolidation will be wonderful for the markets where they take a breather before going up again - that is if we are t continue going up. The pace recently of recovering from our lows has been fairly good to say the least.

Asia was all up and seeing that Europe perhaps too opened gap up - till the mid session it remained hovering around the highs then towards the end started giving off their gains. Finally Europe closed - FTSE just 0.89% up, Dax 1.76% up and Cac 1.06% up. US opened above the flat line in green but was unable to stick there for very long. By around noon the indices had slipped in red and there is where they closed - not too much down but in red only nevertheless. Dow was down 0.82%, Nasdaq down 1.86% and S&P down 1.27%. This fall was even as the massive stimulus package was declared by the Chinese.

The candle yesterday was a huge white one - a candle that can make anyone happy. On 5th Nov we had opened at the level of 3156, it is unfortunate that we could not close above it. A closure above it would have been wonderful and the point where we ended the five day rally would have been voilated on closing basis signaling a likely good day today too. The Bollinger bands remain more or less the same only - widened a bit perhaps if at all. The candles are trailing in the middle. 5 EMA is trying hard to reach up to the 20 EMA line to cross. A crossover by 5 EMA would do very well. volumes were same as yesterday. The MACD positive divergence has increased with the red line above the blue line comfortably so far. Mass index is at 26 and falling. RSI is still looking up and about to cross the 50 marker. If we have a good session today then except RSI to cross 50 marker. The slow stochastic red line is trying to cross the blue line yet again. The TRIX continues to look up. So all in all the indicators so far are fairly good. Now the markets have the last hand to deal - what will they do today? I still stand by what I said an odd break now will actually take us to higher levels - that is if we do not recklessly break the lower supports.

The Pivot data -
R3 3349
R2 3282
R1 3215
Pivot 3094
S1 3027
S2 2906
S3 2839

Projected High Range 3154 to 3348
Projected Low Range 3073 to 2979
Fib Projected High 3212
Fib Projected Low 2921

have a happy day