Wednesday, October 28, 2009

The trend is DOWN

Imagine yourself running northwards. Suddenly you change your mind and want to run in the opposite diection. For that you slow down a bit, come to a halt and then turn and start running southwards. Gradually you build up speed till u reach your desired speed of running.

The market behaves in a similar manner. Till now it was heading higher and higher. But the momentum was waning. There were many signs of the market getting tired. It has now started heading southwards.

Will it continue southwards? It has a high probability of heading southwards all the way down to 4000/3600. This could be the correction I have been anticipating because retail had turned bullish inally. But the market might change its mind and start heading upwards again.

Keep a stop loss and trade short. There could be a lot of money waiting for you in the days ahead.

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