August 30, 2013 Trend: sideways Phase: technical rally (Rally due to stocks being too much oversold for consecutive days Below rsi 25) Mode: (+) -Monthend window dressing -Ghost month to end on sept 3 -Bear market entry was not confirmed (-) Fed tampering Syria issues Ghost month Bear market entry became invalid as psei rallied back to 6,000 level To be considered under bear market Our major index (psei) should be losing at least 20% from previous all time high for a period of at least 2 MONTHS In our case just fell for a few days Making the entry to the bear market invalid On the other note The technical rally seemed to be short & will soon face the challenge regarding FED tapering next month Sept 3 also marks the end of ghost month that will enable the market to gain more mentum to push up Athou rally is bound by technical issues of the stocks and becoz of window dressing Market is still expected to be under pressure for the whole month of sept as it is still unclear as to what would the fed really stand for And a lot of issues to be clarified under our government Banking sector will also remain weak for the rest of the year until next year as there are a lot of issues that it will facing then stay away from banks Go consumer instead You can use this technical rally to sell your position (stock position) And then reposition it later when major issues are cleared Thank you and regards
Posted on: Fri, 30 Aug 2013 04:12:48 +0000
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