My offer for :Stability the diffrence between 7766 & 17320

#1
Stability is the key word for Indian Stock Markets.
After so many years of Stability in India,
It seems now is time for Instablity !
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Markets have voilated the 200 day Ema, For a reason.
We understand it today, Charts do not lie.
As Technical Analysis operates on one Principle:
If there has to be a reason to sell/Buy , it has to be reflected
in the Market via price and Volume.
Hence informed circles have sold, wiping out the possibilities
of a Bull Market continuation.
Elliot wave also concurred this point of view.
International Markets also have added to the downslide.
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What does this mean:
Are we looking at a Reversal of the Good times?
When there is a trend change, there is very high volatility
at top or the bottom.What we have seen in past few days
indicates this.
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Indians- if we all make the 2 Party system possible in India, We
can look forward to Stablity and no shocks, which are very much
required for us to protect our wealth and well being.
Otherwise, we all loose. India has to come first at all costs and
it is for us to make sure that India wins and only than we indians will win.
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BJP & Congress should once again come together as in the past to
avoid any crisis to the Stock Markets.
Otherwise we will have to seriously consider a 61.8 % Correction:
7766
15800-2800= 13000 x 0.618= 8034 (15800-8034= 7766)
With this becoming a possibilty the Bull target of 17320 comes under a review and a Microscope.
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We are on a Sliding Oily Slope, Upwards, Downwards or flat, our path is filled with oil and grease, Tread Carefully.
Cash is KING, Please leave your greed at home, Book profits at higher prices, Avoid new purchases,sales It is time to do NOTHING for some time.
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I can review your protfolio free of cost if you send it to me by email(excel sheet preffered) at [email protected] and give you stratergies to avoid losses and give some STABILITY to your Wealth.
Regards/Max Makhija
 

swagat86

Active Member
#2
Hi Max,

nice analysis. Looks like The nuke deal mayalso play a dampner.

Although, with ur knowledge just like to ask u, do u think the earnings growth are gonna be killed as well????

Because stk markets are reflection of the Econonmy. So if the economy slows down only then me thinks stk mrkts will tumble. of corse the smart ppl will do it much more before others.

thanks
 
#3
Earnings: Here is my viewpoint:

"What the Fed did was about consistent with putting a Band-Aid on a gunshot wound."

"Investors must also take into account that it's the dead of August - not exactly a time of the year known for big market comebacks. Its one of the worst kept secrets on Wall Street that August through October is a rough period for stocks, and one better known for corrections and crashes."


Moreover, reverberations from the subprime mortgage crisis are expected to be felt in the months ahead. There are some that argue the problem has hurt financial markets much more than was warranted, but the fact remains that the nation's financial institutions have been hurting because of it.

"There are still so many unknowns out there,There's a lot of ugly loans out there. You're not going to see JPMorgan or Citigroup go bust over this, but they are going to take an earnings hit."


"On Wednesday, Countrywide said it borrowed $11.5 billion from a group of 40 banks to help stem losses and stay afloat. A global flight to safety has all but dried those markets up. The company's set off another wave of heavy selling on Wall Street."

"Over the next year, monthly payments on some $600 billion of subprime mortgages are scheduled to rise sharply as their two-year loans reset.This could trigger foreclosures for many financially strapped borrowers."
 
#4
dear max sir,

i appreciate ur analysis, but my view is that intermidiate bottom is not too far, and we r heading for 16500 and 17700 in coming months.

warm regards
magnet man
 
#5
Magnet I am max for you not a Sir,
I dont think this time the trend will cross 15800 as there is lot of
Collateral Damage that we are not able to see.
Also with Instability on our Head, we should be more pessimistic
than normal.
 
U

uasish

Guest
#6
I would just like to draw attention to 2 pertinent point

1) Who amongst us where not aware of this Sub-Prime thing atleast 1 year back ,this Hydra was there even 3 yrs back,only the Retailers did not knew.
2) Who amongst us where not aware of this Yen / $ thing ,this Hydra was there even 1 yr back , only the Retailers did not knew.

When we where rallying Where was point No 1 & point no 2 (under the carpet obviously);
All bad news passes unnoticed in Bull Phase & Magnified in Correction Phase,we are supplied with a Timely ;Plausable;Justifiable REASON for this Down Trend & suddenly Media also came to know.
Have we ever thought WHY ICICI the aggressive Bank or any other private bank,NEVER EVER Maketed a Mortgage Finance Product ,becoz even 3 yrs back they where aware of this Bad build up in US & RBI put down its foot with a big No for sanction of these products.
Otherwise think of the Immense Money Locked idle in our Own buildings and Mr Kamat or Mrs Kalpana Moreparia didnt Visualized these potential to be unlocked.
All knew except the poor Retailer .Now as the skeletons are tumbling from the cupboard we came to know .Hence the smart money was aware ,they suddenly did not came to know on 27th July'07.
 
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