The Mirror Image

This is my note of the 16th. "I have now got pretty good at this. Somebody sent me an interesting chart of the Nifty. The idea was good and so I did the old Ctrl C Ctrl V and managed to use this idea for todays note.

The chart that I have sent you shows that the Nifty is currently a perfect mirror image of the fall from Jan 2008. There current dips are equal to falls in 2008 and the current rallies are similar to the falls in 2008.

This is interesting because it suggests that the Nifty can go to new highs pretty fast. Of course, there is no validity for studies like this but then what validity exists for any studies on the market?. How many experts got it right even when the subprime crisis was beginning to flare up in mid 2007. And even in 2008 when the big fall started, nobody predicted that we would see Lehman fail.

The point is that this study is as good as any that we see in the market these days---- no ---actually better because all that the study has to say is said in one picture. You do not have to read pages of voluminous stuff and then get it wrong. Even if this study is wrong it would have taken up only minutes of your valuable time!!!

The Nifty should open up given global and Asian cues. I will be long in the morning and then hope that the graph I sent you is right!!!

P.S The Dollar is killing me. Everytime I think it has bottomed out or that we will see at least a strong bear market rally, it dips back into a downtrend. Though this time around I still think that the Dollar could have bottomed out or is on the verge of doing that. How this ties in with my chart showing Nifty on the verge of a new high is beyond my limited intelligence. Can anyone help me with this one?