Hopes dashed yet again? Update for 05 Feb 08

Star gazing is what I am doing now a days. That is exactly what anyone can when the markets run on their own like an earthworm without a head. The markets have moved on to the phase where in they are trying to find bad news in otherwise perfectly safe havens of investing – and this is what Yahoo says today on yahoo finance. The root problem that stays is that no one even now really know the width and the breadth of the problem the developed nations are facing. Take the Quarterly numbers from Kraft Foods Inc., Walt Disney Co. and Time Warner Inc. provided the latest reminder of the economy's struggles. The weaker-than-expected reports and a profit warning from Costco Wholesale Corp. left investors fearing that consumers are cutting back even more than most analysts thought. In US the investors were investing in tech stocks – that they saw as the saviours in these times of crisis but with the numbers coming out of Cisco – the world’s largest networking gear manufacturer –there has been a sharp drop in January sales. The effect on Nasdaq of Cisco’s numbers was enough to pull Nasdaq down 1%. GOD knows where we go from here.

Asia ended mixed with Nikkei up 2.73%, Hangseng up 2.25% and STI down 0.2%. Meanwhile we had a particularly good day in Europe. The Europe opened flat but sensing a green US went on to close higher – FTSE was up 1.54%, DAX up 2.69% and CAC up 2.90%. The US did not disappoint on opening – opening flat with green bias but by the time it closed the results and host of other factors took it down to close at the lowest points of the day. Dow was down 1.51%, Nasdaq down 0.08% and S&P down 0.75%. Today morning the Asia has opened in red but shows chances of going green. maybe a bit too early to say.

Our markets had nothing to show in particular. Still trailing in the middle of Bollinger bands trying to figure out where we have to go. The Bollinger bands are contracting a bit. The volumes were not good. ADX still bullish. MACD still absolutely flat. RSI trying to look up and Slow Stochastic – red below the blue line and neither oversold nor overbought. So there is no direction that is visible from the charts.

Yesterday the markets moved as always in a narrow directionless mode. opened below the R1 and then took support and kept trading above the R1 to finally break it with force – but pivot provided enough strength to make the market close in green.

Let us see the Pivot data…

R3 2904 against 2910 yesterday
R2 2870
R1 2836
Pivot 2808 against 2788 yesterday
S1 2774
S2 2746
S3 2712 against 2667 yesterday.
Projected High Range 2822 to 2853
Projected Low Range 2830 to 2799
Fib Projected High 2858
Fib Projected Low 2763

The upper levels are more or less at the same place but the lower levels have moved up. May continue to have a green closing.

If the markets behave as they have been behaving for last few days and you get bored then just click here