Category Archives: Equities

Dr.Reddy’s Laboratory in a bottoming formation

Every few days we will look at an emerging market stock. Dr. Reddy’s Laboratory has suddenly come to the limelight today. You will observe from the chart that this stock has been trading between two parallel lines for several days. Only once did it violate the lower line, but it closed higher Continue reading

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Posted in Indian Stocks Trading | Tagged , , , , , | Leave a comment

Should we sell short JPM?

David has added JPM to his short watch list, and has asked what I thought. On 18 Nov, this stock had closed at $32.14. On 21 Nov, it posted a low of 19.69, a loss of nearly 39% in 3 sessions! And just four days later, it has traded at 31.93, a gain of 62%. Wow! After such incredible moves from a giant in the banking industry, one need to look carefully before taking a position. Continue reading

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What is a significant rally in the stock markets?

I read the following in Friday’s FT and thought it is useful to quote here. “History provides some useful benchmarks. After the horrible 1973-74 bear market, equities traded up, though unevenly, until 1982 with six specific bull runs that generated an average 32 percent gain”…but, a buy-and-hold strategy over that time period yielded only 9% compounded annual gains, which merely kept pace with inflation. Continue reading

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Posted in European Stocks, Nasdaq, S&P500, US Stocks outlook | Tagged , , , , | Leave a comment

Qua Vadis QQQQ?

The QQQQ has rallied nicely from the lows. However, as discussed in my previous technical analysis of qqqq, (Has QQQQ posted a major bottom?) we would like to see a move to 30.46 before we can be comfortable about calling a bottom. Continue reading

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Posted in US Stocks outlook | Tagged , , , , | 3 Comments

Has QQQQ posted a major bottom?

You must be wondering whether the QQQQ has posted a major bottom at $25.05. This post will help you make that decision. Users of Elliot wave principle are presented with some of their greatest difficulties when trying to determine whether a major trend has ended. Continue reading

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Elliot Wave Analysis of BHP Australia

Jasmit has requested for a chart of BHP and CBA, and I suppose an Elliot wave analysis of the same. I would love to do both, but being a treasury manager, my day is already too full. So here is just the chart of BHP for you, Jasmit, and all our fellow Elliot wave fans! Continue reading

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Posted in Australian Stocks | Tagged , , | 5 Comments

Fifth wave extensions can make you rich!

The easiest way to make money in any market is after a fifth wave extension. While identifying the precise end point of an extension is often a challenge, you can become quite rich by joining in once the correction starts. Continue reading

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Posted in Euro, Gold, Oil, S&P500, US Stocks outlook | Tagged , | 14 Comments

HP’s turnaround looks good- but beware of resistance above!

Thanks to some tough cost-cutting measures implemented by CEO Mark Hurd, Hewlett-Packard Company (NYSE:HPQ) is in a position to give out strong 4Q outlook. This has sent the stock price sharply higher yesterday, up over 14%. I invite you to take a look at the accompanying chart. Continue reading

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