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.
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