Merry Christmas and Happy New Year

This blog will be inactive from 21 Dec 2007 Friday till Jan 02 Monday 2008. Time for a trading break. Thanks and good luck to all faithful fans. Up or down, we will all hit it big next year.

2c

Remember those numbers

Contrary to what most people believe, life is all about numbers. The long trade from last night was closed out when OEX 685.5 was reached. Remember last night we had to memorize 686, 679 and 674. Without a doubt the market marvelously traveled in between S1 and R1, give or take a few decimals. This is a trader's market. Short from R1 and long from S1 and just suck the money out of the system. Tomorrow's numbers to memorize are 685, 681 and 676.

Now, longer term, are we up or down or what?? Looking at the numbers (sorry it has to be stressed again) tonight, it appears that the smart money has already left the table leaving the average investors to hold the fort. Selling sentiment has subsided but there were not many buyers. You can see in a 2 minute chart, it gapped up and down like a yoyo. Just thin volume trading in effect and moves will be amplified. The market is due for a bounce and this one may just be the last one for this year and it is with high probability that the market will continue downward after this one. Again OEX 690 is the line in the sand.

Good luck

2c

As anticipated

a bounce. It travelled in between S1(674) and r1(683). Did two good trades today. Shorted as soon as it fell below 680 and closed out at 672 (Fib 61% retrace). Went long as soon as it surpassed 680 and is still in the trade. The decision to leave it overnight is because VXO is falling and this gives the hint that the market will go up at least for the short term. But again 690 is the line in the sand for the bulls. Tomorrow's numbers are 686, 679 and 674.

2c

Target reached....

OEX 680 was reached and gone into lower band of 677ish. The whole day it was not able to rise above 684 which was the S1. It was a kind of orderly selling and has a sickly stigma attched to it. In any case, it has been six days of fall and there should be an OS bounce within one or two days especially when the Fib ratio is reached. The bull's case has completely collapsed and do not let any talking head confuse you. It has merit if and only if the market rallies hard back above 690, else the case is closed. Tomorrow watch 683, 680 and 674. Anywhere below 690 is shorting territory.

good luck

2c

It is about time .....

Finally dawned on the investors that we are in a recession with high real inflation and credit problems. We are as of today officially in a bear market. The all important bull support 690 was broken to the down side. Now will see if the official head and shoulder is realised. OEX 680 is near term target. If this line is broken, everybody should run for cover. Looking back at the last few days, could not help but to think how naive some investors are. Dr. B had alrady said no further rate cuts because of high inflation. Do people not know that this is a hint and that one would imagine Dr B would have advance information ahead of all of us and some of us has to wait for it to come out and still buy??? Whoever, advocates new market high should have his head examined. Of course, the market does not come down in a straight line but short on rallies is the theme now. Monday watch 693, 690 and 684.

2c

It is logical that the market is illogical

It still wants to go up in face of high inflation and credit problems. In any case it is oversold and the 686 area, the confluence of multiple moving averages, is providing tremendous support for two days now. Watch 690, 693 and 699 tomorrow. There is a very high probability that tomorrow is an up day, provided tame CPI of course . Whether, it will continue its down draft, we will just have to wait and see.

2c

This has to be a topping process

A wide ranging day suggests exhaustion of trend. Tomorrow's numbers are 706, 696 and 685. Yesterdays' dream still intact till
it is broken. Neckline is 670ish.

good luck

2c