Ashish Kyal, CMT
We have been bold and strong over many weeks that major top is formed in Indian indices and it is comparable to the 2008 collapse. But, it seems we were conservative and the fall is actually comparable to 1987.
When we pointed out - get ready for 2008 crash not many paid heed and now it looks to be bigger than that and actually comparable to 1987!
Only a few who acted on the advice have been cashing the crash and the rest are occupied identifying the news or events resulting in the drastic downfall.
We are facing unprecedented challenges to humanity and existence the way we know it. Given the current pandemic of coronavirus, human survival instincts are challenged.
We have been able to flourish on this planet only because of the strong zeal to grow amidst the situations. Case in point is we do acknowledge the gravity of the situation but these are not the times to blame nature or anything else for the financial meltdown but to see what best can be made out of it.
We have a history that shows that the best of the ideas and financial institutions came up during the Great depression of 1929!
So, during these periods we need to take charge of our trading or investment decisions and see what is working in the current bear market.
Now look at the below charts, Do you see any similarity in the fall?
Your entire perception towards the cause and effect will change if only you stay focused on the facts and the patterned behaviour of the market which is very well defined as per Elliott wave analysis that carries the forecasting ability and the news will eventually follow.
India is supposed to have entered the most delicate phase with respect to coronavirus and Nifty has already rallied by 1100 points from the lows! Astonished Yet!
(The author is CEO Waves Strategy Advisors. He could be reached on Twitter at @kyalashish)
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