Friday

Nikkei Crash vs Dow Crash Update

Post a Comment July 24, 2009 – 10:19 am |   | Permalink |  Print This Post |

www.theinflationist.com

www.theinflationist.com

This rally looks like it has more to go. The Dow broke through 9000 with ease yesterday. This will be the new support - and the next milestone will be 10000. Looking at the chart above, even at 10000, it is still within a nice falling downtrend. NIFTY is back up to 4600 level. We will look to short more NIFTY if this rally continues at this rate. Nothing goes up in one straight line - as long as one has the firepower to hold, you will see these levels again. Our sights are also on Deutsche Bank - currently at $51.95. We look to SHORT it at $60. More updates on that.

On the short term, for those who are trying to top pick this rally, we are still waiting for what we call a Tail Up day - ie a close far below the high of the day (it looks like a tail upwards on the candle chart). This usually marks the turn. So far markets have steadily gone up and closed near the high of the day, which is an ominous sign of more upside to come. On hindsight, we shorted the ASX way too early (it was meant to be a short term trade). Strengthening gas prices, weakening USD and Euro is ligthening the burden of our shorts.