Markets have closed up with strong gains, but is yet far away from any bullish signs. New High/New Low index shows 155 stocks recording New lows toady, while there is no new highs. In a day when broad market averages have given above 2% gains, we have 9 out of 24 stocks in the public sector banks index recording new lows. 6 new lows out of 10 stocks in the power transmission index and 5 new lows in the 10 stock Hotel Industry Index.
All these indicate towards further continuation of the bear phase, maybe with a lull getting into the holiday mood along with the global peers. As this writing goes on we see the US markets turning down sharply. What is the strength of the day long bullishness that the market took off into after getting a nice base? A straight move up from here would have given some nice shorting opportunities on the daily charts, whereas if the market moves into a broad range there are chances that next signals may fail.
Short term traders have to be more choosy in their short calls, trade only on those patterns that show clear strength.
All these indicate towards further continuation of the bear phase, maybe with a lull getting into the holiday mood along with the global peers. As this writing goes on we see the US markets turning down sharply. What is the strength of the day long bullishness that the market took off into after getting a nice base? A straight move up from here would have given some nice shorting opportunities on the daily charts, whereas if the market moves into a broad range there are chances that next signals may fail.
Short term traders have to be more choosy in their short calls, trade only on those patterns that show clear strength.
No comments:
Post a Comment