Thursday, June 21, 2012

Seriously, is the world coming to an end?

Seriously. Is it?

Will the Greeks - the birth place of civilization - complete the circle by putting an end to civilization as we know it. And how will they do this? By refusing to retire at 60 instead of 55. Or, by saying that 35% marginal income tax is not acceptable.

Maybe it will be Spain or Italy that will cause the end of the world. Spanish bond yields can go up to 7.78% causing this world to come to an end.

And then again, maybe the doomsday proponents will go wrong, as they have done in the past.

A very big difference between past crises and the current ongoing problem is - democracy. A government of the people has inbuilt checks and balances. Some times markets may not like what the Government does, but eventually the interests of the markets and the country will coincide. If the country prospers, markets will prosper.

My point is: A crisis will result in a bear market. We saw that in 2008 during the sub prime crisis. Are we going through such a crisis now? My answer would be: No.

If the environment is not bearish, then we revert back to the normal market cycles of accumulation, rally, distribution and decline. My sense is: we are in the accumulation phase.

Look at any number of charts which are building bases, bullish reversal patterns. There is a message by Mr Market - I am going up.

5 comments:

stoxtrends said...

many scrips, in weekly charts are in side ways fashion(i.e.accumulation)


nifty seems to have formed a higher low@4800 for a new bull run

Dinesh Rishi said...

Thanks Sir,

Wonderful post

Sir I want to attend

ATA monthly meeting has a presentation on "Trading Breakouts" on Saturday, June 9, 2012. The presentation will be given by Sudarshan Sukhani

but to my bad luck could not

I would like to attend the next meeting whenever a Presentation is given by you.

Paras Gudhka said...

Dear Sir,
I have been following you since past 1 month, and its unbelievalable how most of your suggestions are perfect. Thank you sir for this wonderfull trading Ideas that you give on Cnbc-Tv18. Please do continue this great work.

gourv said...

Dear Sir,

Nifty Frustrated everyone before making a break out of 5140.Even some one like you just before the break out in CNBC told "Now I am looking for the breakdown below 5050".And that time I thought may be the break out to the upside is comming soon :).Your thoughts on this.

Regards
Gourav

akshay said...

Dear sudarshanji

Can you please tell us about your setup for intraday trading?