There
are different versions of this saying – but I prefer this line as it has a fear
factor.
It was a crazy bull run. From a Technical perspective,
such a run, although beneficial, is not preferable. Rises followed by periods
of consolidation before next moves are much better and safer as Support Zones
are created before Resistances are tested – to be broken or not. I discussed it
in BRAC Bank Analysis. It is also evident in Grameen2 chart.
It seems that lower interest rates might not offer much after inflation adjustment - this might be one of the reasons of increasing liquidity in the stock market.
It seems that lower interest rates might not offer much after inflation adjustment - this might be one of the reasons of increasing liquidity in the stock market.
Nevertheless, I
think we should always be mentally prepared for a correction (and I have been
warning of such for quite a few days) – which seems under way now. The worst case Scenarios are shown in the graph (but don't take them seriously as my earlier alternative scenarios went awry).
However, the
pattern reminds me of the name of a classic – The Shape of Things to Come by H
G Wells.
Note: The charts were prepared on 29 Jan 2017 before trading hours. Since then the market has eroded by 300 points only!!!
Note: The charts were prepared on 29 Jan 2017 before trading hours. Since then the market has eroded by 300 points only!!!
* I didn't share it earlier as it might have created panic!
From Low of May '16
From Low of Nov '16
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