yes we are in an oversold situation, the inference is from technical indicators, which are nothing but mathematical formulas coded with feed from the past 14weeks or 14days or 14months…
the results are as good as the numbers that are fed into the code…
but in realty, can the market continue to move up while discounting the currency depreciation, crude boiling , further tightening of the monetary policy and the liquidity crunch that is coming into the disclosures might be the tip of an iceberg…
i am concerned , what if ILFS is a precursor indicator , of what was Bear Stearns to the wall street?
what i am particularly disturbed about is this picture in the gold futures market…
gold has become terribly oversold, with a very strong bearish tend [ADX>50] , without forming a new low, and a multimonth highest contract transaction, even higher than when it crashed into the bear market
who is hedging against the current world economic situation silently, without taking the prices higher? or in other words, who is diversifying the portfolio for an all weather portfolio…
looking at the shorter term picture[indian index]…
technically, there selling has reached some major trendlines…
a base / slow uptrending channel leading to a euphoric upthrust, might form here…
but what will be the objective of the base/ channel?
we need to be very cautions, what i am keeping my eyes wide open, to look if this is a redistribution that might be shaping up…