Traders
I Wish You A Happy & Prosperous New Year 2011. Make 2011 your best trading year!
Manoj
Note: I could not update the blog due to some circumstances that I have to work on. But If you had followed the blog, I am sure what I shared with you will help make your own interpretation of the market now.
Hope to see you again soon!
Monday, December 27, 2010
Sunday, December 5, 2010
Market Technical Analysis-Weekend Report-Dec 4th 2010
Trader,
Lets see where we are now and a couple of most likely scenarios. Positive market sentiment is an important factor for a country, specially for Sr Lanka. Sri Lanka is working on attracting foreign investors by making country investment friendly. Its said that country's stock market is a good indicator of economy performance.
Last Monday's market reaction (-124 points down) and bringing ASI down to 6200 level was not a good market message.
My guess is Tue & Wed reaction was a push by CSE (government Institutional intervention). I think it was a well planned action by CSE to put the market back above the support level. Statement made by CSE chairman about extending credit clean up period cannot extend the market like that.However it was a much needed boost.
CSE's decision to curtail traders trading capacity by restricting credits had a mixed result. I strongly believe that market manipulators and inside traders should be heavily punished. But credit restriction actually penalized traders who were rightfully doing the trading business. One should not be penalized but appreciative of , if somebody uses his or her creativity to make profits in the market.
For the week ASI was up by massive 4.6% . If you look at the ASI graph above, you see that we are back above the support level. If traders and investors could keep the momentum for another 200 points up, that would break resistance barrier in 6700 level.
Also I noticed that in 2009, we had a similar market behavior (but not that weak). In Oct & Nov 2009 market was in side ways and once it broke up, market had a nice uptrend in Dec 2009 and Jan 2010. (see the graph below)
Out of all the technical indicators, I pay special attention to Advance-Decline line. If you look at the latest A-D line, its still not showing a good recovery.
(I sent a special report and my worksheet on A-D line to traders who submitted broker survey, if you were one of them but has not received the report yet, please email me)
As a trader, try your best to understand what is behind the price action. To trade profitably, you got to eliminate risk as much as possible by analyzing technicals and timing the "entry/exist points". No one can do the exact market timing, but if you develop a simple but effective set of trading rules, you can make huge profits in the long run.
To your success
Manoj Balasooriya
Note: Appreciate if you can share your comments below or email your comments at <learn.manoj@gmail.com>
Lets see where we are now and a couple of most likely scenarios. Positive market sentiment is an important factor for a country, specially for Sr Lanka. Sri Lanka is working on attracting foreign investors by making country investment friendly. Its said that country's stock market is a good indicator of economy performance.
Last Monday's market reaction (-124 points down) and bringing ASI down to 6200 level was not a good market message.
My guess is Tue & Wed reaction was a push by CSE (government Institutional intervention). I think it was a well planned action by CSE to put the market back above the support level. Statement made by CSE chairman about extending credit clean up period cannot extend the market like that.However it was a much needed boost.
CSE's decision to curtail traders trading capacity by restricting credits had a mixed result. I strongly believe that market manipulators and inside traders should be heavily punished. But credit restriction actually penalized traders who were rightfully doing the trading business. One should not be penalized but appreciative of , if somebody uses his or her creativity to make profits in the market.
Also I noticed that in 2009, we had a similar market behavior (but not that weak). In Oct & Nov 2009 market was in side ways and once it broke up, market had a nice uptrend in Dec 2009 and Jan 2010. (see the graph below)
As a trader, try your best to understand what is behind the price action. To trade profitably, you got to eliminate risk as much as possible by analyzing technicals and timing the "entry/exist points". No one can do the exact market timing, but if you develop a simple but effective set of trading rules, you can make huge profits in the long run.
To your success
Manoj Balasooriya
Note: Appreciate if you can share your comments below or email your comments at <learn.manoj@gmail.com>
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