Wednesday, March 30, 2016

Dow Jones Breaks Out - Is It On Road To 18000?

Up up and away!

US markets are in a wonderful northward journey. What a majestic jump it is taking in today's ongoing session!!

If you have been following my advice over a number of days, you have got an entry in market and now you are in profit. Check my last four posts pleading with you to buy US markets:-
  1. Dow Jones Tumbles- Ready to Buy in US Markets?
  2. Remember to Buy US Markets Today - Pick the Dip
  3. US Markets Lose Traction - Have You Started Buying?
  4. Compelling Market Conditions - Do Not Stay Away From Trading US Markets
I guess Dow Jones is good to reach 18000 in this run up. For now let us watch the bulls in full force.

Tuesday, March 29, 2016

Compelling Market Conditions - Do Not Stay Away From Trading US Markets

It is not time to stay away from US markets. It is time to enter trade. Conditions are perfect for traders since you are getting good entry point to go long. US markets need to be traded.

However long term investors may take a break and go on extended holiday.

In my last post  all the opportunities to enter trade have been outlined. First lot of buying has already taken place when Dow Jones dropped 100 points on 23 Mar 2016.

Keep your buying spree going. Do not get worried since in this run up you are bound to see 18000 in Dow. Hence this correction is simply an excellent opportunity to enter trade on the long side.

Remember to keep buying till Dow Jones reaches 17100.

Thursday, March 24, 2016

US Markets Lose Traction - Have You Started Buying?

For last three days I have been asking you to buy US stocks as Dow corrects by 100 points. Yesterday Dow had lost 100 points and had given the first buying opportunity. Check it in my last post here.

If you had bought your first tranche of stocks yesterday, then you need to keep buying in tranches till Dow reaches 17100. This had been advised in my earlier post which you can access again.

As of publishing this post, US markets are indicating further weakness. Dow Jones Futures is presently down by 80 points. So today also you need to buy the second tranche of US stocks when US markets open for trading.

Make sure you enter trade when Dow Jones touches 17350 level.. In this correction in US markets you are getting a good chance to enter markets, so do not miss this opportunity.

Wednesday, March 23, 2016

Remember to Buy US Markets Today- Pick the Dip

Be ready to buy in US markets today. I have already maintained in my last post  that you need to start buying as and when Dow Jones corrects by 100 points. Today seems to be the day when you will get the chance to enter US markets.

Keep buying all dips till Dow reaches 17100. From whatever point Dow reverses this slide, you will get to profit from the move. Most likely point of reversal is 17350 in Dow Jones.

So far the Belgium terror attack has had no serious effect on global markets, US being no different. But that can change with a few statements here and there from people who matter.

Moreover, oil is again sliding down. There are also home sales data which is worrisome. And most of all it is the sentiment of traders which has been dented by global events. There will be traders who would like to book partial profits with dip in sentiment as an excuse.

Whatever be the reason, make sure to start buying the dips in US markets as outlined above. Best of luck!

Tuesday, March 22, 2016

Dow Jones Tumbles - Ready to Buy In US Markets?

I have been harping all along that we need to be patient before starting our buy in US markets.In this current bull run in US markets, we traded well for a gain of 700 points in Dow Jones at a trot. Check it out here.

That was when Dow had reached 17200 as predicted. At that time I had maintained that we need to be patient before initiating trade again. But what I didn't know then was that, after FOMC Meet Fed President Janet Yellen will be so dovish. As a result Dow Jones gathered another 400+ points under its belt. And we did not trade in this spectacular run up!

Yet I have been maintaining all along that you need to enter trade only after Dow cools down by 100 points. Not only that, your buying should continue till Dow Jones reaches 17100 level. Check it out in this blog post.

However I am not saying that Dow will certainly reach 17100 level in this downturn. I am only saying that this zone between 17500 and 17100 is the buying zone in Dow. From any point in this zone, Dow can swing back to 17600 and beyond.

Now what happens if Dow falls beyond 17100. That may well happen. But even in that eventuality, if you buy in zone of  Dow 17500 to 17100 you will ensure you get to see 17600 in Dow again

Hence if you buy in the buying zone mentioned above, you will certainly make profit whether Dow faces headwind at 17600 or breaches 17600 for higher levels. So start buying just as Dow loses 100 points.

Monday, March 21, 2016

Is Tipping Point in US Markets Near - Bears Lurking Round the Corner

Spectacular rise in US markets seems unstoppable. Bears appear to be totally swamped. Experts maintain that today also it will be no different. So convinced are the market experts that they have already declared that this rally looks more than a Bear market retracement.

That makes me little worried. If we analyse the set up in charts, we find that 100 EMA is still sloping downwards. That is not good news for Bulls. Dow Jones may go up by another 400/500 points before 100 EMA will give the positive signal for a continued Bull run.

As things stand now, I would still recommend to be patient in pulling out your buy orders. In my earlier post I had indicated that you need to enter US markets when Dow Jones retraces back to 17100. You may start buying from the point Dow loses 100 points , right down to level of 17100 in Dow. Check it here.

I still maintain my view, which is rooted in the fact that US markets are not out of the woods yet. It is only when markets close above 18200 in Dow that we can reasonably claim that Bear market has been negotiated and then Bulls can claim victory. Till then I see it as retracement/ pullback in the continued Bear run.

Be patient in initiating trade, for it is better not to trade than to be embroiled in Bull/ Bear bloodbath. Ensure that you enter the market when the dust settles down and it becomes certain that that your entry point will give you definite returns.

Saturday, March 19, 2016

Dow Jones Blasting Away - Where Is The Chance To Enter Trade?

US markets are on fire. Such power punch by bulls is rarely seen. One wonders what has changed so dramatically that bulls are charged to such an extent. If the answer is Fed's promise of only two rate hikes in 2016 as against earlier threat of four rate hikes, I am not buying that argument. If you are told Fed rates have been kept on hold and hence the belligerence of the bulls, do not believe it.

Look at the complete picture of bull run. It started in mid Feb 2016. Fed decision, to keep rates unchanged and the hint of only two rate hikes in 2016, came only day before. Then what explains the start of bull run in mid Feb 2016. Do not tell me that bulls knew of  Fed's mind as early as Feb 2016!!

 What has changed so dramatically in global economy that the bulls are cheering so ferociously? Is it oil and its northward journey? But oil has gained only $10 a barrel since Feb 2016, which amounts to no big deal considering the fact that it is still in bear territory and looks poised to sink into well again. There is no sign of production cut on the supply side.While on the demand side there is no pick up since the global economy is in the clutches of recession. The short point is that oil's small gain is not sustainable and is no indication of global economic well being.

Then what is driving the bulls crazy since Feb 2016? If we look at Dollar Index we find that it is sliding with consistency since Feb 2016. This could be driving the bulls to fearlessly trade in US markets. But the moot question is -  what is driving dollar down against major currencies? Some maintain that this is due to a secret deal struck by central bankers at G-20 meet in Shanghai on 26/27 Feb 2016. Deal was to weaken the dollar so that there is some stability in global markets and trade. Very noble!

However the question that begs an answer is simply this - how on earth did the bulls come to know of the secret deal of Central Bankers of G-20 nations earlier than it was hatched? Is it pointing to chink in the revolving door policy of US financial system? Point to ponder seriously!!

Meanwhile Dow Jones has closed above 17600 in today's trade and this close is very near day's high. This has been another strong showing by bulls. Looking at the situation, target of 18200 in Dow in this current bull run does seem quite attainable.

Thursday, March 17, 2016

Dow Jones Moves Up In Flourish - Is It Time To Buy?

With US markets going great guns in today's trade, one can clearly assumes that markets have liked the dovish tone of Janet Yellen. I thought that yesterday's euphoria was due to Fed's indication of two rate hikes in 2016 instead of earlier Fed view of four hikes. Today's trade clearly indicates that it is more than just one day's celebrations. There is substance in this bull run.

So the question arises whether one should enter trade or not. My answer is simple. Buy every dip. Moment you see Dow easing by 100 points, buy your selected stocks. This buying should be continue right up to 17100 in Dow Jones.

In other words you start your buying as and when you see a drop of 100 points in Dow and keep up this buying spree till level of 17100 in Dow.

I am recommending this because Dow is likely to touch 17800 with minor corrections. Trade patiently, trade safe !!!

Wednesday, March 16, 2016

Fed Rate Hike Decision Today - Will You Buy or Sell?

At the end of FOMC Meet today, decision on Fed rate will be out. But what will you like to do in the market? Will you sit on the sidelines or jump into fray. I have some suggestions, so read on

After the Fed decision, if  US markets decide to plunge, you be ready to jump in with your buy orders. If you find that Dow Jones has dropped to 17000, then you must buy. From 17000 you can expect Dow Jones to again recover to its recent high in couple of trading sessions.

But if the markets race up after Fed rate decision is announced, stay away from trading. Do not chase prices. It can be fatal!

So be ready for the Fed decision and do as I have recommended.

Tuesday, March 15, 2016

Dow Jones is Pausing - Fed Rate Hike in Focus

Like I said yesterday, Dow Jones needs to take pause from its Bull run. You may check it here. And today Dow is likely to do just the same. There may be many reasons, like oil slipping due to unlikely production freeze, Fed likely to raise rates or even Bank of Japan maintaining status quo in rates. Whatever reason you may like to ascribe, it is certainly not the time to take definite trading decision to enter trade in US markets.

Now let me be candid about what you may expect from US markets in this week. You can expect wild intraday swings with false break-outs on both sides. This is definitely not what you would like to happen to your new trades, unless you can be very nimble footed in intraday trades.

That is why I would suggest that no new trades should be initiated in US markets now. I will give a  clear indication to enter into trade again, like I did in this post. Hence it is important that you keep watching this space to initiate trade again in US markets, so as to enjoy clear hassle-free profit

Monday, March 14, 2016

What will Dow Jones do Next- Remember Trend Up Needs to Pause

Dow Jones has to take a breather. And why not? It has just run up 700 points almost at a trot. It did this swift bull run in flat 15 days. But if you count the trading days, it is only 12 days. That is when I gave the call to buy on 25 Feb 2016. Check it out here.

However if you see the total bull run of about 1200 points in Dow, it took just 20 trading days. That of course I could not spot. When I did spot the continuation, Dow Jones had already run up 500 points.

Now I am advising that one should stay away from trading in US markets. Let the dust settle down. Dow may go up a little but there is no certainty. There are plenty of dangers lurking there. So the sane thing would be to wait out this uncertainty.

Be certain though that when there is clear chance of making money in US markets again, I shall give the call right here. So keep watching this space.

Saturday, March 12, 2016

Dow Jones Achieves Target- Profitable Recommendation for 700 Points

My last post on 25 Feb 2016 was an exhortation to trade the US Market. I had suggested that there will be an upward movement of 700 points in Dow Jones. Time frame given was 15 days for Dow to gain 700 points and reach level of 17200. Yesterday ie 11 Mar 2016, Dow Jones closed at 17213. Here's the link to my last post

At the time of writing my last post on 25 Feb 2016, experts were talking of global meltdown and hence my recommendation of 700 point jump in Dow Jones within 15 days would not have gone down well with my audience. But I hope some one would have still acted on my advice and made good profits.

Stay tuned for more such profitable tips.