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.The market thankfully respected our analysis of yesterday, 14 Feb 07.
The short term bottom for yesterday, 14 Feb, becomes very significant. For two reasons. One is that a previous gap was tested and not penetrated, and the second it that today, 15 Feb 07, the market opened with a significant gap.
From the way the Index is behaving, we could see a new high in a few days to come. In fact, except for a small hiccup towards the end of February, we could see the market remaining strong right till the first week of March.
Please consider trading with caution during the last week of February, due to the expiry of the derivatives settlement and the news flows about the budget.
6 comments:
We are entering in to the settlement week from Monday . Very small Time contract for this month . :)
You are right, Naresh. As we know, a lot of news based volatility is going to happen, and that is why I mentioned the last week of February, meaning a week before this month ends.
Dusant
Truly humble, as always ! Hope mkts will not disprove u too and lifetime high will be achieved in Feb series itself !
reg
ketan
Re : 15/02/2007
On ur post dated 15/2/2007 you said that ,"From the way the Index is behaving, we could see a new high in a few days to come. In fact, except for a small hiccup towards the end of February, we could see the market remaining strong right till the first week of March".
On 20th mkt fell down , so is this the small hiccup that was mentioned in ur post ?
may I know u mentioned possiblity of small hiccup due to expiry week or on the basis of chart s?
Hello Anonymous,
Yes, this is the hiccup which was anticipated on the basis of charts.
Runaway Gaps normally occur in the beginning of a trend, and such Gaps are seldom closed.
Normally, we do not have a runaway gap in the maturity of a trend, where we are now, and the market tends to re-test the Gap.
Further, I also use a time cycle analysis which allowed me to expect this "hiccup", and to write about it.
Dusant
As an addendum, since the expiration week is an event which everyone knows about, it does not require a genius to confirm the coinciding of an event with the time cycle study.
Dusant
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