dear all,

In trading there is a saying - "Opening prices are set by amateurs; and Closing prices are set by professionals." That is why on charts we plot how closing prices are moving and not opening prices. Always remember - How the market closes is much more important than how market opened. Now, it is in this context, it is important to understand the trading pattern of Indian and US market. For example - If we just look at change in different case altogether. Although the declines/gains were small on closing basis, when compared to the session's highs they were very significant.

Yesterday, in Indian market, it was a nice gap-up opening, sustained there for good part of the trading session before surrendering the entire gains in last couple of hours of trading session. The same trading pattern got repeated in US market. The day started out with big gap up on back of good Wal-Mart numbers but again could not follow-up on gains. And in last one hour of trading session gave up all the gains. The S&P 500 dropped from about 1365 to 1345.

The trading pattern clearly suggests nervousness at higher levels and lack of conviction on part of buyers to take the market up. Technically, this is not a great sign; and we need to be little cautious here as market can take a turn for the worse.

In such kind of environment, the only strategy that works = Hope for the best and Prepare for the worst. The market is indecisive at current levels, and we cannot say with certainty which way market wants to move decisively.
venkatesh

Hi Anid,

How are you?Just want say Hi to you nothing much.Hopeing to see you active in the forum ..when your time permitts.
I hope some of them may recover from their losses from the recent market run(Not me........ )

Takecare
=KPR=