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According to Lt Col Ajay CEO of astromoneyguru.com, as per Astro-technical calculations this week is represents by figure 34 and as per finical numerology figure 34 is ruled by Ketu the planet is known for biggest volatility in world future market. This May creat biggest volatility in forex and commodity market, effect may be seen on world stock market also.
Our advance predictions made in previous article all recommended stocks have gained inpite of heaviest volatility Our recommended stocks were among weekly top gainers ‘s list. We have given early warning for heavy volatility and profit booking in our previous week. Hope our readers must have enjoyed .Now next week highest volatility is expected in US dollars and crude oil .we are expecting down ward corrections in US dollars. Bullion and crude oil may go up this week; Invetsers may keep eyes on these commodities. Gold has seen almost 24% downward corrections in last 4 to 5 weeks. Big downward corrections have been seen in last 3 trading days. As per astro technical this is time to invest in bullion for mid term investment. This is also a establish truth that commodity future runs on demand , supply and inventory while stock market base on 70% psychology(astrology) and 30% technical and fundamental while commodity runs on 80% astro and 20% technical and fundamental . I am bullish on metal and precious metal and crude oil with the view of mid term investment. This is time to investment; remember this may be taken as investment not for day trading or speculations. Since previous week bullion and crude oil have seen brutal sell of in world future market. This time of investment in commodity at almost at bottom price
Successful Speculation - Psychology of Trading
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When does a stock stop going down?
a) When there are no more sellers left;
b) When it has reached reasonable valuation;
c) When the economic/business conditions causing the decline have reversed.
If you answered b) or c) - you need a primer in trading psychology. Any trader worth his salt will tell you that the correct answer is a) - when there are no more sellers left.
Stocks trade on perception and emotion. The underlying reality serves as a base, a springboard, a starting point. If the market were based solely on reason, it simply wouldn't exist. Assets would be assigned an "objective" valuation by a recognized committee of learned men based on a universally accepted formula, and re-appraised periodically. It's the speculators that make the market tick by trying to anticipate the facts and get in ahead of the crowd for a quick profit. If you wait for all the facts to come out before making a commitment, you are invariable too late. Just think about all the times when the good news was finally out and the stock went down, taking you with it.
Trading on anticipation explains why the market is 3-6 months ahead of the economic cycle. Realizing that the earlier one gets in the better, more aggressive speculators try to get in ahead of other speculators.
Since the market trades on emotion, successful speculation also means anticipating how others will react to the news in order to devise your own course of action. Suppose a company in which you own shares announces some really bad news over the weekend. What do you do?
What do you think others will do?
Amateurs probably won't notice, or being the starry eyed optimists they usually are, will tend to discount, or rationalize away, the bad news, particularly if they have purchased the stock recently and don't want to face the loss. They will probably be adding to their positions "on the pullback," arguing that the market got it all wrong.
Bargain hunters will put in their limit orders to get shares at a discount.
Professionals, however, may decide to sell. Those with large positions will have to device elaborate sell programs for Monday to get out with a minimal loss.
If you are a part-time investor, your gut reaction may be to put in a sell order at the market on Sunday night. Now, think about it: if this is what you decide to do, chances are so will many others like you. The result - a backlog of sell orders at the open.
Specialists / market makers whose job is to maintain orderly markets in the stocks assigned to them will have to absorb all that extra supply coming to the market. However, they are under no obligation to buy it from you at your price. They will drop the price sufficiently to realize a quick profit later on in the day, so the stock gaps down at the open. Many limit orders get filled, but to draw in the rest of the value crowd, the stock has to start rising from its intraday low, making people think the worst is over and it's safe to get back in.
As the stock bounces, bargain hunters step in to scoop up the shares flipped by the specialists / market makers who had bought at the open. If you think it's time to get back in - think again. The professionals with large positions are still waiting to unload. As the stock bounces back up, their sells kick in, checking the advance. As the stock begins to sag under the weight of their orders, they stop selling, and may even buy some back to support the price and make others think the worst is over.
How do you benefit from all this? Knowing, or at least anticipating, the above will at the very least save you from trouble. But if you want to run with the big dogs, you need to know how the game is played.
Relationship between crude oil and Sensex_ There will be great combinations of crude oil and stock market since major world economy are base on crude oil and US dollars, if we take current example last 40 days crude oil has come down approximately 22% and Sensex has shoot up around 23%. It is easy to understand that crude oil is directly link with inflations and crude oil but relationship between crude oil and Sensex is not so easy. If you look at past history Indian stock market has started to shooting up around May 2003 to Dec 2007 As per statistic around 550% gain has been registered on monthly closing levels which has come down to 270% if we take 52 weeks levels. Now look at crude oil statistics Crude oil started his upward journey from US$ 25 in April 2003, in Dec 2007 it was below $100 and gone up it's all time highest levels$146 in June 2008 still Indian stock market was keep shooting up like rocket till Dec 2007inpite of around gain of crude oil ($25 to $95 till Dec 07), what is this all about? How we can relate price of crude oil and Sensex always and every time? If crude oil has gained it all time high then oil producing companies should also share success story of crude oil shoot up at world levels. If you look at their balance sheets of all major oil companies at world levels gain have not been registered because of US dollars depreciations. So it is us dollar and crude oil both to decide to market trend.Fortunetly last couple of weeks crude oil has shown big dip and Us dollars shown big gain against Euro, result is with us Stock market up by 23% in few weeks.(5-6 weeks time ) Now it is advise to book profit 70% of delivery calls .If you remember that during first week of July 2008 we have recommended to invest in selected 16 stocks for 45 days now 45 days are over time to book profit .
This week India stock market is expected show biggest volatility My weekly picks would be Hpcl,Bpcl
Nifty Levels
Nifty Resistance 4488 4510 4611
Nifty Support 4400 4344 4275
Commodity sections
Bullion – previous week heavy volatility has seen in world future market brutal sell off was seen. This week some bounce back in possible in gold and silver
Crude oil- Crude oil may bounce back in world future market.
Zinc- Zinc is looking volatile but positive
Cotton- As per stars cotton may show positive movement in spot market
Forex sections
US dollars - Dollars is looking volatile this week against Euro
Euro - Euro may show positive movement in world future market
This week may bring fortune for Tula and Varshik rashi. Now stars may start favoring them in trading as well as at demotic fronts. Kumbh rashi may careful in big trading, over confidence may lead big losses.
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