PERFORMANCE:
Yesterday we had also recommended to buy SREI Infra (cash) around 105--104 for target of 109 with stop loss of 102.Our called proved fruitful and today it made high of 111.80 and closed at 109.35.We were able to mint profit or return of 3.80% in just two trading session.
Rest all call remains intact.....Maintain Stop loss and remember folks patience is the key..
S&P 500 and NASDAQ 100 Forecast
S&P 500
The S&P 500 initially fell on
Monday in CFD trading, reaching down towards the 2595 level before bouncing
again. By doing so, the market built up enough momentum to reach towards the
2600 level again and even break above there. The 2600 level of course is very important,
and will attract a lot of attention. Now that we have broken above there, the
market looks likely to find that area as supportive. Ultimately, I believe that
the longer-term uptrend continues, in a market that seems to be algorithmically
driven more than anything else. I believe that the US dollar falling has helped
a little bit, but given enough time we should reach towards the 2625 handle,
and then eventually the 2650 level. Ultimately, this is a market that I think
is almost impossible to short, because we have seen so much in the way of
buying pressure. However, that doesn’t necessarily mean that I want to jump
into this market feet first and with a large position.
Buying dips continues to be the best way to trade this market, and
I think that the 2590 level underneath is offering a temporary “floor” going
forward. I think that the S&P 500 will continue to go higher with other US
stock indices, least in the short term. The problem that we may have is that US
Congress not been able to pass tax reform would be very negative for the stock
market as it would affect corporate earnings. Because of this, I expect a lot
of noise in this market and it is not to be an easy one to trade. Options are
probably the best way to go, as at least then you can mitigate a lot of your
potential risk.
Dow Jones 30
The Dow Jones 30 initially drifted lower during Monday trading,
reaching towards the 23,500 level to find buyers. We bounce from there to reach
towards the 23,635 handle, and then pull back again. However, every time we
dip, the Dow Jones 30 seems to find buyers, as do most US stock indices.
Algorithmic trading continues to lead the way, and I don’t think that this is a
market you can sell. In fact, it looks to me like the 23,500 level is starting
to offer a bit of a floor. I think that eventually we go looking towards the
25,000 level above, and although this market is overbought on longer-term
charts, you certainly cannot step in front of this type of momentum as risk
appetite continues to be strong.
NASDAQ 100
The NASDAQ 100 of course has been bullish as well, showing signs
of support at the 6400 level, an area that was massively resistive in the past.
By pulling back yet again, and showing support yet again, it looks as if we are
in a bit of a holding pattern, perhaps trying to build up the momentum
necessary to reach towards the 6500 level above. I believe that is a
psychologically important level that of course will attract a lot of attention,
and be a juicy target for the bullish traders out there to take advantage of.
I look at the 6370 level as a bit of a floor currently, and that
short-term traders continue to jump in based upon dips that offer value, in a
market that I think almost must test the 6500 level above to answer a lot of
questions. Longer-term, I don’t see why we wouldn’t continue to go higher,
because quite frankly the machines have taken over.
MORE WILL UPDATE SOON!!
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