Now with Europe officially getting into a recession, Hongkong also there and USA showing the lowest ever retail sales data, the picture is not exactly perfect..With the markets rebounding from the lows of 7600, and going upto 11,000 the journey back of the markets has now started to look little scary. Although there is nothing on the charts that suggests that we are capitulating, its the individual stock prices that are nearing their 7600 lows that is begining to worry me...Also now as the stock prices are again nearing their bottoms suddenly they don't look so attractive anymore, guess its a function of their earnings also. However as stated in my previous posts, that for any bottom to happen the markets have to retest the previous lows and only once that happens do we see a recovery...markets still have to retest the bottom and stop there!
On the technicals side today's day was not particularly good as today was the day when we broke the recovery uptrend on the MACD that we had nicely established. Again from the charts its virtually impossible to predict tomorrows setup as we are not on the extremes, but the news flow is negative and that is not concerting....
Its difficult to invest in such times, specially when one knows that if one is playing in the derivatives markets its much easier to make money there by going short or by selling covered calls rather than making long investments in stocks...Lets hope for the best, that this series is able to hold its own, else we are entering troubled waters!!!
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