It been a 100 point move from yesterday's lows to today's highs, and the pause was called for.
We expected it as it was a "2i" day, where generally the highs are made in the first two hours of trading.
What is standing out from the above chart is the action of today n yesterday forming a mirror image of the action on the 18th and the 19th.Notice the two rectangles on the charts.
So we saw similar moves from the same levels with a close at approximately the same points.What's different is that even though we had a balanced profile, today's action came back to test that supply point of 5465-5485. If held in tomorrow's trade, then the market has a high probability to jump higher from here.
In the bank Nifty we are watching for the 80 % rule to kick in tomorrow.
Target 11039.
We'll know tomorrow.
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5 comments:
Thanks Shai.
:)
here is a glimpse, which actually tells the status of a retailer against fii/dii/hni's. Dont miss thissssssssssssss.
http://www.4shared.com/photo/3HtJvDYp/tiger__me.html
regards
Hi Shai,
Western markets have started off on a strong footing due to positive data..This might just be the fillip needed by bank nifty to rally another 100 odd points maybe which in turn would also account for the 80% rule that was supposed to kick in today.
Keshava,
We reached the POC, from below Value low, which most profilers would consider good enough.
In terms of direction, there are a few things besides the 80% rule, which has kept us long on this index.
US markets if they close above 1096 will be at 1140 soon.
We have been following the BP saga for some time here on this blog.
Here's the latest on that.
First read this : http://www.marketwatch.com/story/bps-shakedown-in-the-gulf-2010-09-03
and then this :
http://www.marketwatch.com/story/bp-oil-spill-costs-hit-8-billion-2010-09-03
Now the cake :
"It seems like a miracle our beloved leader was able to convince BP to establish a $20 billion slush (oops, escrow) fund to compensate those hurt by the ongoing oil plume in the Gulf of Mexico . After all, he had no constitutional power to force them to do so; so he had to resort to Chicago-style negotiating.
But, let's take a closer look at the effect on BP's finances:
1. BP will establish a $20 billion fund, but will pay only $7 billion into it during 2010.
2. BP is a British corporation which has a very large operating entity in the US , but only about 30% of it's income is derived from the US .
3. By Generally Accepted Accounting Principles (GAAP), BP must book the entire $20 billion expense in the year accrued. Therefore, they will book a $20 billion expense in 2010, reducing their US tax liability by $7 billion.
4. Our dear leader also convinced this massive corporation to show their concern for the "small people" by withholding dividends to their shareholders for the last 3 quarters of 2010. This reduces their outward cash flow by about $7.5 billion, including approximately 40% of that amount to US citizens. Assuming the Bush tax cuts will survive through 2010, the US Treasury will lose another $450 million in taxes on that amount. We won't even discuss the effect on the US economy.
Let's put the results into a table easily understood by the small people (including me):
BP Cash Flow:
o Escrow funding - minus ($7 billion)
o Dividend saving $7.5 billion
o Tax savings $7 billion
o Net favorable cash flow : $7.5 billion
US Treasury Tax Receipts:
o BP Corporate income tax .... minus $7.5 billion
o BP Shareholders ..... minus $0.45 billion
o Net unfavorable tax receipts ..... minus $7.95 billion
I guess we really should expect this. After all, our dear leader is the most inexperienced man in ANY room he enters.
Now tell me ..Did the enlightened one "Kick Ass", or did he get "Sucker Punched"? This is just one more reason why a 'community organizer" should NOT be negotiating anything dealing with money and finances!
Bottom line: The $20 Billion BP is putting up will create a $7.5 Billion positive cash for BP flow this year. But, Obama actually "thinks" he really did something special and "kicked ass' (in his own words).In reality, BP executives are laughing at him and 'kicked his ass". Oh well.. what's new with this President anyway??? He's in over his head when he starts dealing with "business people"."
( The above is from a forwarded mail)
The Prez is losing not just in the popularity stakes.
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