Market made a monstrous move last week after European union seemed to have come to some resolution regarding debt crisis. However, it was risky period as market could have tanked without any Euro resolution. If you were not invested in market last week then you did miss a big move indeed. Oct 2011 is a historic month where we witnessed 17-20% gain in any index in a single month. This unusual phenomenon happened after 1974 when such huge move was recorded last time. Now the big question is how far will this rally continue!!!
Last week market took a breather and the rally stalled for few days. Typically after any initial rally, market usually either stalls or experience a pullback for few days before continuing the rally. On Friday, market moved higher and seems like it will continue the rally further...
From last week, 4th October onwards market took a sudden turn and in no time we saw a rally taking place. On 11/12th October, BPNYA gave us a BUY signal. BUT is this rally for real or just another BULL trap!!!
Market is on a roller coaster ride from August onwards and last week is no different. Will this push higher is for real? or just another wild swing!!! Below charts might tell us the probable market direction from here...
Markets are currently in very turbulent global environment. Any attempt market makes to move up from here will be most likely a trap for many. Earnings season will start in a week, assumptions and expectations may push market higher for another 2-3 weeks. Once the earnings are released and guidance are published, initial enthusiasm will subside. Immediately, USA Debt reduction will be in focus and pressure will start building as 6 member congress committee attempts to come up with a $1.3 trillion debt reduction package. Remember, last time how difficult it was to reach any agreement between both parties (August nightmares) and same drama will follow this time as well...
What is NYUD?
What is BPNYA?