I had written on Sunday........If panic settles, we will see an intermediate base......Monday saw panic in Indian Markets, yesterday there was panic in US......History says that market finds base in panic situation......This time also we found support.........But this does not mean we are out of wounds.....We should now see a time wise correction (price wise should not be much).....time correction tends to be slow and steady......
Already, some of the weak hands started calling me to know if they should sell their loss making portfolio.......Still, many of us are expecting recovery.........This is the stage of time wise correction........When very few of us will think of recovery, fresh rally will start.....
But I will still call this a correction in a structural bull market........Even if we touch 10000, it will be a correction only........My perception of a true bear market means lows below that of the previous bull cycle.....Example.....Nikkei.........
At this point of time DOW is 400+ (Yesterday only it was -800)........If this level is maintained at close, we would probably see again see a GAP UP in Asia and India tomorrow, which wont be good.....But I feel that GAP up wont be much in the sense that today we went to 3985 in futures and then retraced to 3920.......4015 and 4120 will be the resistances.....
[This is the 2nd post tonight...Read the 1st post below: "FED - Were they sleeping?"]
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