Monday another difficult open for indices.....

Indices are sitting ready to take out 50 DMA in all indices, thanks to Paris situation.

Here is how indices has fared so far in last 8 trading days :

-Dow down 4.08%

-S&P 500 down 4.41%

-Nasdaq down 4.56%

Here is how RSI is sitting after 8 trading days :

-Nasdaq @ 43.73

-Dow @ 43.33

-S&P 500 @ 41.61

In distress situation, RSI can tumble to 30 or even hair below 30 before it is "deeply oversold"

Interest hike fears have taken hold on the trading psyche of traders and market participant.

Commodities are being trashed with US$ flying high on interest rate hike scenario....

BUT.....there may be silver lining due to Paris effect, and they are :

-Oil may move UP

-Gold may move UP

-Indices may open sharply lower, unless Fed makes a "contrary statement of interest rate in US staying put"

In any "unusual situation like Paris" reaction may be sharply lower but may stabilise by end of trading day......that is the hope, let us see IF it plays out that way.

Again, Monday may present buying opportunity in strong stocks.......

IF you have been waiting to buy or increase your exposure, Monday open may give you a very good entry, it is better to be lucky than smart.

On a personal note, last week was my worst week ever in 4++ decade of trading, 12% loss in 1 week, thanks to FIT for majority of losses.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed