Global Weakness Continues

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Dear Investor,

Global Weakness will be the focus of coming week. US market has officially closed below 150 day line that is bear market sign. The news flow has also turned negative. Good news is it has not had any impact on India market. There are two possibilities in US market. One is market is preparing for a reverse head and shoulder to launch a great new rally. Second is it will correct significantly to form a new bottom.

NIFTY Stock Market is in overbought condition. I would like to wait for sometime before taking new positions. Lets inspect the emotional aspect of this market. Every body's mind is echoing "This market is not going down. It just goes up no matter what. Every body's money is growing and I am not able to participate in the rally." This kind of emotional battle goes on traders mind. This in my experience is the time when to stay back. you do not want to do trade because your mind is emotionally forcing you to take the position. You do not want to trade with the fear of missing out.

NIFTY

Observe volume bars in above chart which are showing more red lines and less green lines towards the end of chart. This in usually a technical condition called distribution, where volume increased on down days and volume decreases on up days. Especially with global weakness spurring up, little caution is advised while excitement is at most high.

Please add following stocks to your watch list

BF Utilities

Development Credit Bank

Arvind Mills

Thanks
Anil
Got a Question/Send your contributions for other members:
email:indiastocktrend@gmail.com
Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.

Tony Robbins - Important Note to Listen

Dear Investor,

Tony Robbins is a one of motivational speaker. He has something interesting comments related to stock market. Watch it if you have time to listen to it.

http://economicedge.blogspot.com/2010/08/tony-robbins-important-note-of-caution.html

Thanks
Anil
Got a Question/Send your contributions for other members:
email:indiastocktrend@gmail.com
Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.

Gitanjali Gems is Moving Higher

Dear Investor,

Gitanjali Gems is moving higher. It has cleared a significant base and should be in our portfolio. No position should be all in since market can change direction any time. All the stock markets are resilient to any negative news. US markets just shake off any bad news. Market is just chopping around a narrow range. Similar is the situation with India market.

Last week did not make any significant character change. Market is still in overbought condition. Earnings season is kind of coming to conclusive stage where not many positive or negative surprises were given. Under current situation only solid stocks should be on buy list. If possible wait is advised until market works out extreme overbought condition.

Many stocks are lining up for long side breakout. If you believe what market did last was the big move then I can only tell you that it was tip of iceberg. A whole amount is waiting to come out of ground taking stocks to never imagined higher levels. We need to wait for that moment. The foundation is in making, building shall follow soon.

Thanks
Anil
Got a Question/Send your contributions for other members:
email:indiastocktrend@gmail.com
Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.