Thursday, November 27, 2008

This time it may be different

While Indian Markets have been indifferent for the past three days (excluding the holiday today), world markets have been moving up. This is what The Big Picture says:

We have now had four days in a row of a higher market, something we have not seen since June this year. This is also the S&P 500 Index’s biggest four-day surge (+18.0%) since 1933.

..... Interestingly, according to Bloomberg, Société Générale global equity strategist James Montier said he’s never been so bullish after the financial crisis dragged down prices of stocks, corporate bonds and inflation-protected government debt.

.....Although there is as yet little evidence that we are leaving the corpse of the bear behind (especially with Q4 earnings disasters looming in January), it would appear that the nascent rally could have more steam left.

My Notes: Will we have a rally ? The answer should have been 'Yes', but Mumbai events have cast a long shadow over the Indian Market. There may be unpredctable consequences which we cannot foresee now. Therefore, my suggestion is to wait out any further decline in the market. Short selling is not a good idea. Traders should look for some kind of consolidation / V reversal and then consider buying.

2 comments:

Tushar said...

http://technicals4all.blogspot.com/2008/11/indian-rally-is-pending.html

Tushar said...

Yes this time it was different:
good post sir
http://technicals4all.blogspot.com/2008/11/inside-nifty-bar.html

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