Thursday, May 28, 2009

Update for 28 May 09…

On the onset let me apologise to you for being out of touch for so long. I had mentioned one of the days earlier that I was expected to go on leave. I am on leave, and having a ball of a time the only problem that I faced was -- there was no connectivity at all. Believe you me no GPRS, no broadband, no TV. In hearts of hearts I missed all these but then I believe it is wonderful to be unplugged from the world once a while. In fact I had beginning to enjoy it actually but then today I am online with a brand-new reliance broadband dongle. There was no way that I was going to be unplugged for so long.Daily 27 May 09

 

In the meanwhile the markets have been in a topsy-turvy, gaining as there was no more. The news has been good I do not hope it at all and as long as the smaller the EMA's are trailing above the larger EMA's there is no way that the markets are showing any weakness. But -- BUT remains – I often ask myself a single question – what I have to gain or loose by adjusting my forethoughts to suite the mood that is prevalent in the markets and ride with sentiments? See I too have no doubts that there is euphoria in the markets – the govt is much more stable than before etc etc – but even so the govt is unlikely to present a miracle drug to come out of the present situation – unless ofcourse there is a recovery all over the world I feel that we should remain range bound for perhaps a long time to come meanwhile the ride the good times.

 

Seeing the performance of Asia yesterday – Europe opened green and then slumped negative and then oscillated till the closing – closing mainly flat with FTSE up in green 0.1%, DAX green 0.3% and CAC green 0.76%. US opened flat and then after midsession took a hit where in it finished around the lowest point of the day – DOW ended at 2.05% red, Nasdaq down 1.11% and S&P down 1.9%. Asia has taken these cues for starting the day – Nikkei started in deep red but almost immediately recovered most of the losses – trailing just 0.05% down – Strait Times is down 1.51%.

 

The charts are the interesting part that agree with my line of thinking. They are as apprehensive as I am (;-D):-   The candle yesterday was a tall and white one and we are once again attempting to trail or rather come to atleast the middle of the Bollinger bands. The attempt may or may not be successful and the market might try to test the middle of Bollinger bands at around 4000 levels. The 3 EMA was trying to mesh with the running 15 EMA but the plans were cut short with the today’s white candle. Cut short or delayed is something that we will come to know at some later date. Volumes have been good. Now the ADX – it has been long and it has not been lending any support to this run up inspite of the good volumes that we see. No uncertainty about a negative divergence. MACD is bullish without a doubt. The slow Stochastic are bearish with an attempt to become bullish. RSI is overbought at 70.26.

 

So that is about all – from my side the deductions are yours but I am more certain perhaps of a downside than an upside. Best of luck to all. I will try to be regular but this holiday binging may not allow me to do so.


allvoices

5 comments:

geniusjaggu said...

paaji,good mrng,happy holidays and welcome back to jungle!!

pls,take your seat(i m position)!!

geniusjaggu said...

oops..i mean position..LOL

S S Cheema said...

Roger - jaggu = bloody what happened to sell in may and go away? it is second last day today@!#

Anonymous said...

Dear Cheema,

Welcome back. Hope you enjoyed your holidays.

Regards,

Veer

S S Cheema said...

Hi veer - I am still enjoying
;-)