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.

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.

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.

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 !!!

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.