Nifty for 08 Oct 07

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.

I hate to say, I told you so.

Readers are requested to just go back and read my analysis for Friday. It was repeated again and again during the whole of last week, to remain cautious with trailing stops, and I assume that those musings of mine would have been heeded.

All I can repeat at this stage is my “feeling” about the market. “I can confidently say that this short term top which could occur or already has occurred around ~5250 is not the ultimate peak.” Again, I repeat … this is my feeling … and not trading advice.

The final opportunity for bulls may just be around the corner. This may be around the 24th of this month. The suggestion to buy on dips remains, what we need to ascertain is that the Index makes a bullish pattern. The chart of the bullish pattern is there in my posting archives. Check for the link on the right side. However, I am showing the chart again for convenience.

With such a large bearish day, it is inevitable that there would be some short covering, which could allow the Index to move up. This situation normally tempts bulls to buy again. However, it is not suggested to jump in right away.

Most important, please be prepared for some huge intraday volatility with gap open moves.

Plan your trade and trade happy. Suggested to keep the trailing stops intact, and enjoy the ride.