Guys, Nifty fell with BIG volumes yesterday so don’t expect markets to recover from that negative trend any time soon.

The trend of profit booking had started in markets – and even in individual stocks- since early this week.

As markets had fallen with big margins yesterday and today being the last session of this trading week, we might see a slight breather in early hours of trading.

But global cues are still negative and markets will follow those cues. The broader pattern in world markets has turned bearish and that goes for Indian markets too.

Expect Indian markets to trade with high volatility and a negative tilt today. The opening might be positive following slight gains in world markets, but will it last long? Chances are not too bright for that.

Here are Nifty levels for the day; watch these to anticipate markets’ movements.

Pivot: 6001

Support One:5921

Support Two:5875

Support Three:5795

Resistance One:6047

Resistance Two:6127

Resistance Three:6172

Good luck, have a great session and enjoy the day in markets today!

May 23, 2013 (11:29 PM EDT)

A few hours ago, I was watching when the gates of world markets opened and U.S. stock futures turned a bit high. Even though these futures are still positive, they have lost half of their earlier gains.

Meaning? Bulls have lost their hold on markets and bears are getting stronger with every passing hour.

Nikkei? Oh yes, the Japanese index is trading 2.72% higher at the time of writing, but look at the charts and you can see that this index has come down from its opening levels of the day ( 14,841) and at 14,858 level, is actually  trading NEGATIVE for the day!

Who will tell you such minor details of markets if it were not for me?

Yesterday, all markets around the world broke their trend lines or even various support levels with thumping margins.

It was a kind of big bang in markets which reverberates across the solar system, forget about continents.

(I am a shameless bear so I can proudly declare, I loved every moment of it and am looking for an encore today *hehe*)

Looks like markets are going to fulfill my wishes and continue to trend in a negative pattern today.

As I mentioned before, U.S. and European stock futures are making a feeble attempt at staying positive. So is Nikkei, the “hero” of yesterday’s spectacular, historic fall.

SGX Nifty is also trading a few points higher but the way Indian indexes went down with high volumes yesterday, there is not much hope of those markets going against global cues.

European markets, which usually follow trading pattern of U.S. markets, stayed lower, highly negative even though U.S. indexes recovered from opening losses, thus signalling a tilt towards bearish trend.

U.S. markets saved the day by staying near to their previous closing levels because a similar drop in these markets would have created havoc in world markets today.

At the time of writing Nikkei continues to turn lower from earlier high of the day. Today, all other major markets are going to follow this index’s movement so keep an eye on Nikkei’s pattern

Expect world markets to continue with the lower trend that started yesterday. Nothing except a positive statement from the Fed about QE3 can halt this trend now.

That’s all for now.

Have fun with markets, enjoy the day and have a great session in markets today!

See you later.

Guys,  hope you all are having as wonderful a day as I am !

( if you had been as bearish on markets as I was, you must be ).

If you were, you would be celebrating the day, and the news of U.S. jobless claims falling more than expected.

Not only this news is a positive signal for U.S. economy, it also strengthens the Fed’s point of view of tapering QE3 (or $85 billion bond buying/ asset purchasing/ money printing program) very soon.

As I had been harping like a broken record markets had been rallying on the basis of this free and $85 billion liquidity boost per month from the Federal Reserve, and, tapering this program was going to bring markets down.

Yesterday, the Fed chief Ben Bernanke hinted at the possibility of tapering QE3 if economy showed continuous improvement and FOMC meeting minutes showed many members favoured reducing the asset purchasing program from June itself.

World markets have been butchered today at the possibility of QE3 reduction. (it has not been raining bears, it was pouring! *hehe*)

Related posts:

Indian markets crash, Nikkei drops 6%, Europe to open low, US stock futures down

Nikkei drops more than a thousand points from day’s high!

Markets bulls were hoping for some negative economic data today so the Fed could be forced to continue / not taper QE3 so soon.

Alas, the fortune gods are now smiling at, and siding with markets bears ( = me ) so the jobless numbers have come out better than expected.

Now, at one hand this is a positive development for the U.S. economy, but bad for markets’ recent rally.

Which way markets will go from here?

Downwards, where else?!

European markets had opened nearly -2% down and have been comatose at those levels since then.

U.S. stock futures have been down by nearly -1%, indicating a huge gap down opening in markets today.

How low U.S. indexes will go from there?

That, we’ll have to wait and see.

Expect U.S. markets to open with a big gap and continue to trade in a negative and volatile trend.

Enjoy the company of big bears, have fun, have a great session in markets today!

(Earlier:  8:30 EDT)

U.S. jobless claims have fallen, giving boost to possible tapering of QE3 program of the Fed.

More bad news for markets bulls

More details soon

May 23, 2013, (1:51 AM EDT)

Presenting world markets today; open, about to open and futures.

As I had written earlier, the correction phase has started in world markets.

Enjoy

related posts:

Is Dow Jones Heading Towards Another Historic Crash?

Is Dow Jones Heading Towards Another Historic Crash?- II

Even a bear like me exclaimed “holy crap!” When I saw this chart!

Nikkei, which was trading more than 2% higher earlier and made a high of 15946 in the day, is now trading more that -5% down at 14791!

That is more than a thousand point’s drop in a day!

Err.. didn’t I say have a happy day? (*hehe*)

U.S. stock futures are highly negative, I wonder what is going to happen in European markets?

We’ll see soon.

And by the way, Indian markets too have cracked more than a percent lower.

“Bear” party is in full swing in world markets

Indian markets are the most intelligent of the lot. They started correcting 3 sessions ago before the Fed could shake world markets

Expect this lower trend to continue in Indian markets as traders go for profit booking for the top of markets’ current range.

Today, Indian markets will receive a number of big results, including from the State Bank of India, so Bank Nifty and banking stocks will see high volatility.

The NSE index Nifty has a major support at 6050, which it narrowly survived yesterday. Today, if markets open with as much gap as SGX Nifty is showing (nearly -30 points), Nifty will open near this level, thus generating highly volatile trade in the initial trading session.

Here are Nifty levels for the day, use these to find intra day resistance and support levels.

Pivot: 6105

Support One:6063
Support Two:6032
Support Three:5990

Resistance One:6136
Resistance Two:6178
Resistance Three:6209

Enjoy the session, enjoy the day and hit some profitable trades today!

Good luck, have a great day in markets!

May 22, 2013 (10:57 PM EDT)

Welcome back to a happy trading session in world markets!

Where should I start? What happened in U.S. markets yesterday or what is expected to happen in world markets today- and in days to come?

(Too much happiness to handle for a bear like me *hehe*)

Okay, let’s start with the fall in U.S. markets in the last session.

As I had been blabbering non-stop for almost a month, the Federal Reserve had been dropping hints about tapering its QE4 – or bond buying (or free money printing) program. This program has been providing all that liquidity to markets on which world markets have been rallying.

With this liquidity drying up, the rally too will come to an end and world markets will enter a long awaited phase of correction.

Yesterday, the Fed chief Ben Bernanke provided more hints about tapering this asses buying program in “next few meetings” of the Fed and an FOMC meeting minutes showed, “a number of members of the Fed” were in favour of reducing QE3 as soon as from the next month.

U.S. markets slumped- mostly on profit booking and today, we are seeing a reflection of the same trend in world markets.

This drop in U.S. markets happened with BIG volumes, indicating buyers have started running out of their positions and sellers – or bears (like me )- have taken over markets now.

That does NOT mean you should go and put all your money in short positions immediately!!!

Please remember, the Fed will give markets ample time for a SLOW correction, instead of creating a panicky stampede by starting to taper off its QE3 program immediately. This correction will be more like climbing down one step at a time instead of tumbling down the cliff. Next meeting of the Fed is scheduled for June 19^th and markets will wait for that meeting for more clues about the QE3’s future.

Today, world markets are seeing repercussions of the Fed’s warning signals. Bond markets have fallen, Gold and Euro are trading low and the Dollar index is trading higher.

U.S. and European stock futures are slightly negative, SGX Nifty is highly negative indicating a gap down opening for Indian markets today.

European markets too are expected to follow this same trend and open with a gap down.

Today’s session in European markets will be especially volatile as markets will receive many important economic reports from the region.

Same with U.S. markets which will see jobless claims report before the opening bell.

Expect a highly volatile but mostly negative trading in world markets today. Markets will continue to inch closer to a lower trend with intra- day volatility.

Good luck and have another great session in markets today!

So, U.S. markets have turned negative. It has nothing to do with tech but everything to do with hints from the Fed that many of its members favor tapering of asset buying program as soon as next month.

First, the Fed chief Ben Bernanke said, if economy continues to improve, the Fed might go for tapering the QE3 program in “next few meetings.” With this comment U.S. markets dipped and the Dollar index flew high.

Then cam FOMC meeting minutes which showed “a number of  participants” favored reducing of QE3 as early as June.

That did it.

U.S. markets are now diving down in the negative.

But it was expected, wasn’t it? I mean, the Fed’s response?

Remember, I had written about all those Put Option buying in U.S. indexes last week?

Read here once again: What made US Markets rally on Friday?

Markets whales know what is going to happen, charts tell us what market whales are going to do, and I, dear friends, sniff around to tell you what charts are telling me

Now I’ll go pat my back some more. You can keep coming back to read what no one else tells you about markets *grin*.

(Earlier:  9:16AM EDT )

Guys, I hope you have been having a wonderful day!

We are back for the opening bell in U.S. markets, with a red carpet to welcome the Fed chief Ben Bernanke and his statement at the Capitol Hill.

( If he makes any bullish comments, I won’t hesitate pulling the rug from under his feet !)

Almost 12 hours ago I had written how world markets had turned red when Bank of Japan came out with its economic forecast but no rate cuts. (12 hours? Feels it was just 12 seconds ago!)

Trust the Fed members to spoil that bearish party in world market.

U.S. stock future have turned highly positive after the Fed’s New York president, William Dudley commented that any decision about tapering the QE3 would take a few months’ time.

World markets, which were earlier trading in the negative , instantly perked up and turned positive.

And now, markets will wait for the Fed chairman, Ben Bernanke to endorse the same sentiments about NOT tapering QE3 in a hurry.

Please remember, these are markets’ expectations, not necessary that Mr. Bernanke will fulfil these expectations.

Any hint from the Fed chief about having any thought to taper QE3 will make markets tumble down ( and make me jump up with joy *hehe*)

10 AM EDT is the time when world of stock markets will stop in its tracks as Mr. Bernanke starts his testimony today before Congress.

For traders, investors and everyone having anything to do with markets, the Earth will stop revolving . It will resume its orbiting only after Mr. Bernanke’s testimony is over.

Going by what hints he drops- about tapering ( bearish) or not tapering the QE3 (bullish for markets), markets will take a trend.

(Me? I’ll be over the Moon if he hints about tapering QE3 measures )

So, keep your fingers crossed, wait for Mr. Bernanke to appear before the Congressional committee and see what havoc he causes in markets with his comments.

Expect U.S. markets to open positive but trade with high volatility till The Fed chief has made his statement.

Good luck, have fun and have a great day in markets today!

I’ll perch up on my usual fence seat and enjoy the action

If something big happens, I’ll be back with more updates.

See you later!

Indian markets have started their pre-open trades so I’ll keep the update short.

In last two sessions, Indian markets fell from the high levels of their current range, with slightly lower volumes, indicating this was a “profit booking” fall rather than a bearish trend.

Will Indian markets continue this profit booking trend today?

Well, markets are facing a big support ahead, especially Nifty has a strong support at 6100.

If this index breaches this levels due to profit booking, we might see a continuation of lower closing like earlier session.

Else markets will develop and new, small range at these levels and remain highly volatile through the day.

Watch these Nifty levels to see which way markets are going:

Pivot: 6132

Support One:6084

Support Two:6054

Support Three:6006

Resistance One:6162

Resistance Two:6210

Resistance Three:6240

Good luck, trade safely and have another great day in markets!

May 21, 2013 (11:27 PM EDT)

Welcome back to another action-packed session in world markets today!

The session in world markets has started with a big bang from the Bank of Japan, which refused to oblige markets with a rate cut (as markets were hoping/ expecting) and with that, first stage of today’s drama has started unfolding!

Dollar slipped against Yen immediately and the Dollar index (which trades against a basket of major currencies) turned negative as well.

U.S. stock futures and Gold also dipped slightly into the negative territory.

Nikkei lost a few points. SGX Nifty had been trading in a straight line since a gap up open.

As I said, this was the first installment of action-sequences scheduled for today (:))

Next installment will come with European markets which will receive important economic reports from U.K. and Euro Zone.

The most important session in world markets today will be in U.S. markets which will see some important economic reports.

THE event of this week, will occur at 10 AM EDT, when the Federal Reserve’s chief, Mr. Ben Bernanke will start testifying before Congress.

Expect world markets to trade with high volatility and remain range bound within previous few sessions’ range.

It’s a roller coaster ride in markets ahead; faint hearted traders should keep away. So should intelligent traders

If you can’t then trade very carefully, keep strict stop loss in all your trades and be ready to get trampled in markets at any moment (*hehe*).

Have  a great day, enjoy the session in world markets today!