NIFTY: Our Nifty is very very bullish. The TRIN too is oversold indicating plenty of shorts and in keeping with the fall. An oversold TRIN during a fall with a bullish techinical close is the foundation for a rally if global cues are good. Unfortunately dow closed deep in the red so those shorts may just get built up some more. However since our inflation number was not bad and the daily technicals is very very bullish we will rise from the lows of the day. I would go long on the nifty after a 0.75% fall if at all.
Dow Jones: Super bullish, yes superbullish. The MACD Histo has ticked up, yes ticked up inspite of the fall which is very bullish. The MACD fast line is above the slow line and this means bulls are in control. The MACD histo/price shows BUY divergence or bullish divergence. The ADX has ticked up inspite of the fall and whats more for the first time in 38 days the PM (= positive movement, thats plus DI of ADX ) has crossed above the NM (= Negative movement, Minus DI of ADX)which means get ready to go long and BUY. Of course the bull power has declined and bear power has increased in keeping with the fall, this is the only bearish spot in the daily technicals of Dow. The NYSE TRIN too is terribly overbought at 0.3 inspite of the fall indicating they bought into the fall and this is bullish. The NASDAQ TRIN of course is in keeping with the fall and oversold at greater than 1.
CRUDE: Continues to remain bearish.
I have already squared my puts ystday, but would go long today at day's lows (at 0.75% if at all it touches that low)on nifty futures. This is my view not prediction. My views may be totally wrong and the markets could laugh at me. No clue. But such a vehmently bullish Dow is tempting me to buy. Its your call. I am not god and i am just expressing my views. If not today, at least by Monday dow will rally, sometimes when the selling pressure is so hard, it takes a day for technicals to play out. |
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