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 has finally cracked. This move could have the extinct bears of the Indian markets wanting to come out of hibernation. Already I am beginning to hear their grunts.
To such hopeful bears, I may give the suggestion to please go back to sleep. This correction may last for a short time. However, the market seems to be headed for a phase of high volatility, so even if short term bears do become active, it may not give them adequate opportunities. Stops would be triggered, panic buttons would be hit. The risk to reward ratio is not favourable for bears.
We may see selling at every significant rise, but that could be in the shape of smaller profit booking exits, rather than large scale bear selling.
Yes, it is true that we are correcting down. Yes, we could project some down side. But no one can pin point with certainty when the correction is over. As of now, ~4765 (~16178 on the BSE) seems to be on the cards.
Maybe, we could see a short term bottom on our projected time cycle of 24 October.
Plan your trade and trade happy.
1 comment:
haha ! nice tranquilizers to caffeinated bears !
well, i will buy on dips as suggested !
thanks a ton ... i now finally understand risk reward ratios ! haha
reg
ketan
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