Click Here to Receive Free Daily Tips to your emailDear Investor,
Today I thought of bringing out few similarities I notice between
today's NIFTY behavior with the 2008 Crash behavior. This will be little complicated for people who are only interested in hot tips. I will help you better if you learn how the market always tips you before main event unfolds. If you can't see the chart clearly then click on it to see it bigger.
Points to note
1. Red line in the chart is 50 day moving average line. Observe that market did not correct to 50 day line for 3-4 months
2.
Bollinger band green lines were compressing
3. After 3 months of range bound trading marked by blue lines, It crossed below the red 50 day line
4. Big correction followed after this event
5.
Also look at the indicator at the bottom of this chart. When Red line moves above blue, its a sell signal
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhoOGGxdJtbL3g5k_KgM-VhIx9xF2s6N-21Q2TySUnZs58PkICwixPT47-i3tOrPhVAPg4Ak5Tg4n2-5QtGh7Nytt1LfM9XlDNsDlKTaNOin9NPiPzKaBYywqxF27_LGNr3BX2rZ4IJJPta/s400/NIFTY+2007+Sep+-+2008+Jan.gif)
Now lets focus on
today's market NIFTY 2009
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiws4f5RlzoQVAeWx-LsPLBSwkbl0s4D3QjFufN0Tmvxze7KBjcrueCpnP_D7z2vBS85jLwKQrL6zUzEKngPmXNEdIlT9IairJ7L4eC5A3xmYk-hSabjQh474hSXQvrd2vUoyPuC1YPYsGT/s400/NIFTY+2009+Feb+-+2009+Sep.gif)
1. Red line in the chart is 50 day moving average line. Observe that market did not correct to 50 day line for 3-4 months. Only once it touched the red line
2.
Bollinger band green lines are compressing
3. After 3 months of range bound trading marked by blue lines, It has still
not crossed below the red 50 day line
4. Look at the indicator at the bottom of this chart. When Red line moves above blue, its a sell signal. Its not signalling a sell yet but could be close to it.
I find too much similar characteristics between today and just before 2008 correction. Point to take home is to be extra cautious. Times are certainly not exciting and certain cash position should be prepared. I am not suggesting to sell all you have and exit the market place. My job is to educate you to look from all perspectives and keep an open mind to future happenings. Its hard to predict the future but we can certainly learn from past.
We are still not ready for a big sell off yet..until the 50 day red line is taken out.
Thanks
AnilPlease forward this email to your friends and family members to help them build wealth under technical stock market guidance.
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