Category: Technical Analysis

  • Time to Choose Your Side, Bull or Bear?

    A fantastic January for stock markets! probably the best in decades. US stock prices doesn’t really indicate any Euro Crisis whatsoever. There are hardly any signs of recessions or double dip (remember those were so loud and clear till Nov’11). Doesn’t Mr Market discounts everything 6months in advance? Since S&P500 touched 1074.77 in early Oct’11,…

  • Get Ready

    Yesterday was second consecutive 90% down days, another “down days pair”  just after a week. Mind it, this “Down day pair” i.e. two 90% down days consecutively is a rare event which indicates oversold state of the markets. In the normal days, a 90% down day is followed by 2-7days of technical rebound. Albeit, ever…

  • Interesting Times Ahead

    Even though markets closed in positive territory on Thursday, down volume was 52% of up + down volume. There were 16 new 52 Wks high while 82 were at new 52wks low. On NYSE 1377 stocks advanced and 1682 issues declined. During after hrs, RIMM announced poor set of results and the stock was down…

  • Don’t Simply Ignore this Divergence

    Over past 2-3 decades, Stock Market Technical analysis has developed into a full professional career. And if one is willing to learn and master it, there are certified programs like Chartered Market Technicians or popularly known as CMT. Some traders live by it day-in-day-out, while others think that charts are nothing but randomly distributed events…

  • Where is NIFTY (NSEI) Headed?

    Where is NIFTY (S&P CNX NIFTY NSEI) headed? Well, no one has that answers else they wouldn’t be trading. It’s all about “What ifs” and probability of those likelihoods. This post tries to paint what are the possible outcomes in the short run and how could you trade those? Let’s cover some macro economic perspective first…

  • Is it The Time to be Bullish?

    I mentioned that I won’t go long until S&P can close above $1,344. Yesterday, S&P close comfortable above 1,344. Additionally, there was another bullish signal based upon Dow Theory i.e. both Dow Industrial and Dow Transport closed at new high since Mar’09 bottom. So the market might be entering into another bull leg, probably the last leg…