September is done and dusted. At the beginning of September our analysis had said, "Keeping a buffer of couple of percent, we can go long in the 5150-5200 band. 8 times out of 11 year, one would have made money with this strategy."
We did make money and now let us see how we can play the October series in the market.
September ended with a gain of 8.5 %. In the past 12 years, we had 4 years of gains in excess of 8 pc in September. These years were 2005, 2007, 2009 and 2010. Let us see how Octobers panned out in these years.
Years of large gains in September usually result in declines in October. Only in 2007 at the peak of the bull market, there was an exception.
Also, in October generally the markets are subdued and may give small gains.
Looking at all this the upside is capped for the markets in October. At the upper end of the range we have 5800-5850 and at the lower end of the range 5300-5350.
Technicals:
As per Elliot we are in 3 rd wave of the C leg starting from 4770. This leg may have ended or is on the verge of ending around 5750.
C1 was 4770 - 5348 (578 points)
C2 was 5348 - 5032 (313 points)
C3 was 5032 - 5735 and ongoing (703 points)
I expect C4 to end between 5300-5400 and consume a major portion of October 2012. This will present a very good buying opportunity for the final surge to take place.
I expect the medium termmarket movement as follows:
5700/5800 - 5300/5400 - 5900-6200 to peak sometime between end of November and the year end.
The global markets will remain up at least till the US Presidential elections are out of the way in November 2012.
We had a very successful year with 2 products returning 47 pc and 52 pc respectively. We have a very limited subscriptions open.
For more details, visit:
Wanna Shop with me and Lakshmi?
We did make money and now let us see how we can play the October series in the market.
September ended with a gain of 8.5 %. In the past 12 years, we had 4 years of gains in excess of 8 pc in September. These years were 2005, 2007, 2009 and 2010. Let us see how Octobers panned out in these years.
Years of large gains in September usually result in declines in October. Only in 2007 at the peak of the bull market, there was an exception.
Also, in October generally the markets are subdued and may give small gains.
Looking at all this the upside is capped for the markets in October. At the upper end of the range we have 5800-5850 and at the lower end of the range 5300-5350.
Technicals:
As per Elliot we are in 3 rd wave of the C leg starting from 4770. This leg may have ended or is on the verge of ending around 5750.
C1 was 4770 - 5348 (578 points)
C2 was 5348 - 5032 (313 points)
C3 was 5032 - 5735 and ongoing (703 points)
I expect C4 to end between 5300-5400 and consume a major portion of October 2012. This will present a very good buying opportunity for the final surge to take place.
I expect the medium termmarket movement as follows:
5700/5800 - 5300/5400 - 5900-6200 to peak sometime between end of November and the year end.
The global markets will remain up at least till the US Presidential elections are out of the way in November 2012.
We had a very successful year with 2 products returning 47 pc and 52 pc respectively. We have a very limited subscriptions open.
For more details, visit:
Wanna Shop with me and Lakshmi?
0 comments:
Post a Comment