Bear market rally

From some of posts, you may get a strong sense that I am bear biased. Yes, I admit. I still strongly believe that the rally we witness here is a pure bear-market rally and it’s going to fall hard very soon.

I will not be very surprised if the panic buying send this climax run to 95—960 region finally next week. This relay will stop somewhere eventually and the last bag holder will take all the pains. i will not initiate any new longs in the coming days and wait for the short entry point. As i said, the selloff is going to be bloody, so do not be greedy on the last few pennies.

Today, I get another view on the markets that the whole correction may just stop here but not till August as i proposed in a previous post. The major A wave down has not finish yet and the rally we have is the primary wave 4. Wave 5 down leg will take us to the 666 level again if not lower. I prefer this count than the other one now. We will have some more definite answers when the market starts falling.

Many sectors are approaching their 200MA. Techs are leading the market and take out the 200ma last week. but it can not hold and on Friday, it closed below. Financials and Industrials are very close the the fading 200ma line and they may give it a touch next week. I will call it a kiss of death. :)

OK, guys, i will give some charts on individual stocks tomorrow. Keep posted.