December 20, 2014

The Fed NEEDS Inflation Otherwise the Bond Bubble Will Burst

As we keep emphasizing, the Fed’s real concern is the bond bubble… NOT stocks.
We get more evidence of this from Janet Yellen’s press conference after the Fed’s Wednesday FOMC meeting.
During the conference, Yellen repeatedly stated that lower oil prices were “positive” for the US economy. This is simply astounding because the Fed has repeatedly told us time and again that it was IN-flation NOT DE-flation that was great for the economy.
And yet, on Wednesday, the head of the Fed admitted, in public, that deflation can in fact be positive.
How can deflation be both positive for the economy at the same time that the economy needs MORE inflation?
The answer is easy… Yellen doesn’t care about the economy. She cares about the US’s massive debt load AKA the BOND BUBBLE.
Read complete article here

Fed calls time on $5.7 trillion of emerging market dollar debt

The US Federal Reserve has pulled the trigger. Emerging markets must now brace for their ordeal by fire.
They have collectively borrowed $5.7 trillion in US dollars, a currency they cannot print and do not control. This hard-currency debt has tripled in a decade, split between $3.1 trillion in bank loans and $2.6 trillion in bonds. It is comparable in scale and ratio-terms to any of the biggest cross-border lending sprees of the past two centuries.

BANK NIFTY technicals

This index looks the strongest amongst other indices.

However, trend is down and will reverse on close above 18900




CNX IT technicals

Trend is down and will on close above 12000.

Currently the index is trading near double bottom support at 10700.

Formation of lower swing high is expected.


Comparison of nifty, midcap and small cap charts

NIFTY trend is down and will reverse on close above 8630. Formation of lower swing high is expected.



December 19, 2014

Hot stocks and charts



  • These charts are for educational purposes only.
  • This is not a recommendation to buy or sell
  • Follow the trend... if stock is at 20 days high, trend is up and vice versa.
  • Golden stoploss: min 10% or 20 days low (long position).
  • Never risk more than 1% of your capital on any trade.
  • All charts are provided by icharts.in

Weekend update

Trend is down and will reverse on close above 8630 spot.

Within this downtrend, markets recovered smartly off oversold conditions... this was along expected lines.

Now within any trend, an anti-trend move of 2-3 days is allowable. So now we have 2 days of higher high higher lows and also 2 gaps to contend with.

Interestingly, today was a small bar implying selling at higher levels.

December 18, 2014

Hot stocks and charts


  • These charts are for educational purposes only.
  • This is not a recommendation to buy or sell
  • Follow the trend... if stock is at 20 days high, trend is up and vice versa.
  • Golden stoploss: min 10% or 20 days low (long position).
  • Never risk more than 1% of your capital on any trade.
  • All charts are provided by icharts.in

Market outlook

Trend is down and will reverse on close above 8630 spot.

Within this downtrend, markets recovered smartly off oversold conditions... this was along expected lines.

Yesterday's hammer was the first clue and condition for trading above yesterday's high was met on open itself.

Now within any trend, an anti-trend move of 2-3 days is allowable. Today was the first day so a rally for another day is perfectly fine.


December 17, 2014

Market outlook

Trend is down and will reverse on close above 8630 spot.

Today, markets formed a hammer... this has bullish implications if nifty can trade above today's high tomorrow.

Markets remain oversold as of now but in strongly trending (down) markets, this is normal. Let us if we get a bounce from current levels.