These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.
From some of the comments which I read, it does seem that folks have indeed made the right decisions, at the right time. The Nifty is fast approaching our objective mentioned in my analysis of 18 Sep 06.
http://dusant.blogspot.com/2006/09/nifty-analysis-for-18-sep-06.html
Also as mentioned yesterday, the bears were waiting for a decisive breakout with their stops. As soon as those stops were triggered, the market cooled off and returned to consolidation mode.
Now another game is going to be set up. The market will now probably try and chase the stops of the bulls. Those stops are going to be around the 3500 levels. Therefore, bulls will need to adopt some more guts and withstand that onslaught.
Although I do not pay much attention to fundamental information, from what news is filtering in, it does seem that Diwali is going to be bright.
7 comments:
Hi Mr. Dusant,
I have a question, can the Sensex keep climbing upwards forever without covering the gaps which are present (9800 the last gap)?
Thanks and Regards
Giridhar Gowravajhal
Hello Giridhar,
If you want a one word answer ... YES!
Anything is possible.
From 28 April 2003, count how many gaps are still open. You will get your own answer.
In fact, these gaps are classified as runaway gaps, which reflect strong sentiment, and are very seldom closed.
Runaway gaps can be in both ... the up as well as the downside direction.
thank you sir,
one more question in the last rally since 2004 at every step we find a clear base was formed with a double bottom and so the rally was very healthy which lasted for almost 3 years. But the rally since may 06 its just a one way upwards. Dont you think we are on a loose footing?
Thanks and Regards
Giridhar Gowravajhal
Hello Giridhar,
Once more, please do not forget at any given point in time, the market can do only three things ... go up, go down or go sideways.
No one is going to come and give us a medal saying that we have analysed the market correctly. Our bottom line is going to be affected,
=> if we analyse the market correctly,
=> plan how to trade it and then
=> trade the plan
Whether the market is on a sound or loose footing, who cares. As long as we are making money trading it.
Trade Happy.
Dusant
thank you sir
Regards,
Giridhar Gowravajhal
WAH GURUJI WAH ! TUSI GREAT HO !! WHAT TRUTH IN UR SIMPLE WORDS AND WHAT WISDOM !! "PLAN THE TRADE AND THEN TRADE THE PLAN " I AM FOLLOWING U SINCE THREE MONTHS AND I HAVE STOPPED LOSING MONEY (FIRST STEP), HOPEFULLY WILL START MAKING IT TOO !!
REG
KETAN
PS: WE ARE DYING TO HEAR ABT UR WEBSITE !!
Hello Pandyaketan,
Please do not overwhelm me by such effusive comments.
Glad to hear that you have stopped losing money.
Making money, now is just a step away.
Dusant
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