Global Markets Sell Off - Dow Jones Not Yet In Sell Territory

Dow Jones is down to 17600. Is it time to worry for long positions held?. I do not think so

In fact it is at 17600 that Dow Jones should take support. If it does take support here then we can see 18000 in Dow.

But in case Dow slips below 18600 on closing basis then we will have to review our position. To be precise,  in case Dow closes below 17600 then wait for Dow to reach 17700 again and exit your long positions.

However as long as Dow closes above 17600 we need to keep our long positions till 18000 in Dow.

Indian markets dived deep into negative territory today. Nifty closed at 7603, down 156 points. That has made Nifty vulnerable to further downside.

But if tomorrow Nifty closes in green then we will have a chance of good bounce back in coming days. Nifty has to give a strong closing tomorrow if it has to reach 8000 in this run up. Hope Nifty closes above 7700 tomorrow!

It is a Steep Climb to 18000 - But Dow is Doing Fine

US markets seem to be taking some time to reach 18000 in Dow. After all it is a steep climb that has to be negotiated. But have no qualms, Dow Jones is right on track to reach 18000.

Moment we find any signal of reversal, you will be intimated. Be sure of that. So for now keep holding your long positions till Dow Jones reaches 18000. 

Manner in which Dow reaches 18000 will decide the fate of Dow after 18000.

As for Indian markets, Nifty closed in the green today after trading in tight range. However Nifty is racing ahead to make a breakout from the present trading range.

Today Nifty closed at 7759. Tomorrow RBI review meet will give the decision on rate cut and also give out their guidance going forward.

In case RBI gives 50 bps rate cut, then Nifty will surge ahead to make a break out from its present trading range. 

However if RBI announces only 25 bps rate cut then we will witness a drop in the markets. With 25 bps rate cut we will witness Nifty move sideways in the range of 7700 - 7400 for some time to come.

Racing Towards Target - Dow Jones Steams Ahead

 

Dow Jones picked up steam to race towards its goal of 18000. That is exactly what we had predicted in this post

In yesterday's trading session Dow Jones gained 107 points and closed at 17792. This momentum is sure to take Dow Jones to 18000.

Those who took cue from my earlier posts to buy in US Markets would be sitting pretty with hefty gains. I had given this buy call when Dow Jones was trading at 17400, six trading sessions back. Hope you see reason  to trade my recommendations.

 As for Indian markets, Nifty is taking a breather before resuming its upward journey.

Nifty seems to be in consolidation phase. The following scenarios can happen in Nifty, which closed at 7713 last Friday :-

1. Nifty can come down to 7600 level and then take support.
2. Nifty can go further down and take support at 7300 level.
3. Nifty can go up from here and close near 7800.

Whatever be the case, Nifty is consolidating to make a dash to 8600 in couple of months.

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.

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.