Thursday, December 4, 2008

I am sick… of this directionless market…

If it breaks upwards then I will celebrate because I was right all this while – if it goes down then atleast I will know that I was wrong. Now waiting for something to happen has become the worst thing in my life now-a-days. Even US feels so – they are so sick of the bad news and the worthless data that is pouring in that they sometimes disregard it and set it aside to show some movement. What are we waitinhsc4586lg for? GOD only knows. Perhaps the smartest thing possible is being done by the idiot box – they give a high target one day and a low target the other – now they have done is for so many days at a stretch  that any good move – whether positive or negative they can claim it as a trophy - ‘I said so…’. Okay now – the economic data that has come out in US is bad as expected. As the data poured in about the state of the US economy the US investors shook their head in disbelief – after  it was all done – the markets took a swing to higher levels as investors and analysts say that most of the bad news ahs already been priced into the markets shown by the huge declines in the past two months. There was also a news doing round in the markets that the hedge funds have stopped selling as aggressively as they were doing in the past. The news included – drop in productivity, a pullback in services and the Federal Reserve’s finding of a worsening economic conditions across the country. Two thoughts worth taking note of  - the  US positive streak for past nine days with the exception of Monday –Firstly, some say that the present upswing is in no way fundamental and that it is just wishful thinking. The second thought is that though the turbulence will continue – the worst is over. Take your pick for whatever it is worth.

Well to the global cues not. Asia opened positive (unlike us – wonder what is wrong with us) and remained basically positive ending – Nikkei 1.79% up,Hang Seng up 1.36% up and Strait Times flat 0.08% up. Europe was negative the entire day and then by the end showed a good recovery inspite of US futures giving negative cues. FTSE was up 1.14%, Dax up 0.78% and CAC 0.44% up. The US was well into the red territory to start the day with. then with effort it moved up in green territory. As the economic data flowed in the markets plunged down – then with a few sprinkles of good news the markets bounced back in positive territory once again to end the day in green – up almost 2% +. Dow was up 2.05%, Nasdaq up 2.94% and S&P up 2.58%. getImageFromSession.php

On the candles – there is just nothing that is new. The candle was almost a perfect Doji. the Bollinger bands are there where they were yesterday, the day before, the day to day before…. sorry just get carried away. The 5 EMA line is still below the 20 EMA line. Volumes a bit better than yesterday. MACD still shows a positive divergence. RSI is good and bullish. Slow Stochastic looking down with the red line still below the blue line. TRIX is still good and green looking up.

Pivot data…
R3 2775 against 2774 yesterday
R2 2735
R1 2695
Pivot 2653 against 2633 yesterday
S1 2613
S2 2571
S3 2531 against 2492 yesterday
Projected High Range 2674 to 2715
Projected Low Range 2670 to 2629
Fib Projected High 2715
Fib Projected Low 2588

Best of luck for trading today.