Wednesday, November 30, 2011

Market making Lower Tops......

That is a bad sign.Market is making a lower Tops and that is not a good sign.
If one can observe then market is constantly making a lower Top.....every top is getting lower and that means that market is in a very bad shape.
FII's are selling in Loss as well and they are buying distressed asset in EU countries.Whether that move will be good or not time will only tell but they (FII's) are selling and investing in distressed assests in Europe Unions countries.
Even though oversaes market were looking good Indian Market were down and that says all.
If the GDP figures comes below 6.5% we can see capitulation in our market.
For the sake of inflation , which cannot be tamed by interest hike and raise in CRR , RBI went increasing it on behest of government and the result is there for us.Economics growth hindered,Cos getting loans at higher rates and hence outgo of int becoming more and hence bottomline get punished and hence performance becoming bad......

The present government has made a hell of a situtaion and market is in tailspin.I wrote recently that market can touch 3900 and seems we are heading for that.

When any stock or market starts making lower TOPS one needs to become more vigilant.Remember this RULE forever.
Another RULE I am disclosing is:

" When a stocks  makes a high and reacts and if it is more then 15-20% then forget that stock."

When I write forget that stock , it means that once a HIGH is made and when a stocks then goes down by over 15-20% then it is TIME  TO GET OUT FROM THAT STOCK.
It says that the distribution is taking place and we also need to get out.
Just try to recall stocks which you hold and see what happened to them once they reacted from the HIGH and the correction is over 15-20% and one will see invariably that stock will go down further.

Readers, please keep this always in MIND.Cut Paste this sentence and observe it whenever you can and if you feel what I am writing is correct then follow it either it be a BULL Market or Bear Market......

Well, what I am trying here to say is, once stock has made a new HIGH and then starts retracing by 15-20% then it will still further go down and then breaking the previosu HIGH will be a herculian task.That previous HIGH becomes a major resistance level for that stock and even if the stock is good it will keep on coming off from that HIGH several times and traders play that way.
They sell near the previous HIGH and stock will go down and then they will buy again and again sell near previosu HIGH and that they will do many times.

But there is catch as well here.One can trade in that stock and make some money but if stock is really good and results are coming good then one day when it will break the previous HIGH and go above it then it will not give chance to buy that stock.For example, Sujana Towers.It came back many times from a certain level of a HIGH and then when it broke that HIGH and went up it went up and up.......

I am not yet ready to write my list for A gr and B gr stock and I feel we have ample time not to buy in hurry and hence I am taking my own time as
But let me write here, this time will also go away and market will be back to normal but we will have to bear the pain.There is no way we can avoid this and hence best thing is to sit on sidelines and watch what market is doing.
I have been time and again writing that don't put borrowed money.Play with those money where one is sure will not be needed for 5 yrs.......
Market never fulfill our dream.It works on its own......


  1. Rajeevji, why HBL power not publish 2010-11 annual report? Any idea

  2. Hi,
    I am also surprised why a Co like HBL Power has not published AR for 2011 still?
    BTW, I would like you to suggest that write your name in English at the end of your message so that I can address you with your name.I don't know your mothertounge and hence I have to copy paste in your language.
    I hope you should have no problem in writing your name in English as I can see you can write comments in English....

  3. Rajeev,

    Do u think todays move by central banks to help the financial system is a big +ve ?


  4. Sunny,
    It is again USA who has open the purse string while printing some more dollars.
    Ofcourse this will ease the financial crisis and hence I am seeing as of now Dow is up by 409 points.
    Let us see whether this financial crunch easing takes us where?
    But market in USA has reacted positively and who knows that can become the turning point for our market as well......