Gut Feeling

After enlightening you with my life changing Six Habits of Highly Effective Traders, I decided to cast my discerning eye on the charts of various indices and assets to try and see whether any common picture emerges from such a glance. I will not bother you with my various analysis and move straight to the conclusions. This helps in many ways. For one, you definitely are not interested in reading all my analysis. Secondly and more importantly I did not do any analysis; I just looked at the charts and let my gut tell me what it feels.                                                                            

So here are the conclusions that my substantial gut drew from the charts.

1] S&P500 could make a sharp move to 1270 if it crosses 1171.50 in the coming week                                                                            2] Dollar Index has not yet rallied to a stage where a fall to the previous lows becomes a very low probability event. While it could rally to around 80 levels, the fall to previous lows is still very much on the cards.

3] Gold still has the potential to make a new high. Infact I think that it is more likely to make a new high to 1920 levels than break below 1530.

4] Silver looks much weaker than Gold. While it does not mean that Silver cannot rally, it is very likely that Silver will not make a new high even as Gold does.

5] If DAX trades above 5750 then it is more than likely to go to 6200 in the near term. While it does not change the overall picture it does make the short term look better for everybody specially because DAX can be considered as a proxy for Europe.
6] Coming to our own markets, Nifty can make a sharp rally specially if we trade above 4951 in the coming week. While the first target is near 5200, the chances of it moving higher towards 5500 cannot be discounted. I am therefore going to cut my short positions and go long if Nifty trades above 4941. The stoploss for such a trade will be 4870.

I am sure these incredible insights will help you more than any other strategy piece in taking those important decisions on your portfolios. Which is not saying much because those strategy pieces definitely do not help. And if my views turn out to be right and if you make some money following these ideas then remember that this was my gut feeling. It would appreciate a dinner thrown in its honor.