FRIDAY 05 SEP 2008

2:45 p.m. There is no change in our updated outlook of yesterday. This is just to reiterate that I would not allocate more than 10% for buying at today's levels, as mentioned therein.


8:00 a.m. Markets fall, not when the final bad news arrives but, when more bad news is yet to come. That is what happened in the US markets and other world markets yesterday. Almost all the major markets have closed below their crucial technical levels. It is an average of over 2.5% fall world over. Today also is some more US data to come (please see the calendar at the bottom of every page).

The consensus is that a fall below 11000 on DOW (its 52 week low point is 10732) would accentuate the primary downtrend. But the only respite is in the convention that markets have never behaved as per the consensus.

I would like to make a point here. People who follow technicals according to charts would not go by day to day news. A tech analyst would always believe that all the news, big or small would fall in line with the technical outlook. So, a big market fall or a nuclear deal done or not done etc would pan out according to the given targets and stop losses. This view point has worked well so far; yet, not to underestimate the significance of fundamentals, of course!

Therefore, I would stand by my technical view point reviewed in my yesterday's (04 SEP) update given below. Please read that carefully and trade accordingly.

Also go through the Weekly Outlook from time to time.

(Though unlikely, there could be another update today between 2.30 to 3.00 p.m., 'only if' felt necessary).

Wishing you all a happy trading day!