Thursday, October 9, 2008

Break From Blogging

The market has started showing some signs of capitulation now. On Wednesday, the Nifty after recording a low of 3329, managed to improve and finally closed at 3513, almost 200 points above the day's low. This did not happen due to any positive news that came into the market. I personally feel that it happened because of the value buying that took place in stocks. If it really was value buying then we might have seen the end of the capitulation. If it was something else, and not value buying, then there may be more downside possible. For that let us understand first what capitulation is. Capitulation is when there is negative news, negative sentiment, negative outlook and all the negativity around and everybody is busy selling stocks to avoid further loss. This was happening since the last 2-3 days. By this time the market has fallen so much that people have lost confidence in the markets and then suddenly, out of nowhere, stocks are so cheap that value buying emerges and we see the end of the bear market. It is still too early to say whether the bear market has ended or not but it does seem that capitulation has already taken place or is taking place now.

Okay, a little bit about myself now. I am a technical analyst and enjoy predicting the markets by using technical analysis. I am also a stock broker and I wanted to share my ideas and analysis with my clients. To enable that I started blogging on 20th Novemeber 2007. Since then I have come a long way. I now have more readers across the world and on any given day they outnumber my clients three to one. Over the last 11 months, I have never taken a break from blogging, except an odd day here or an odd day there or when I wasn't well or when my computers was attacked by viruses, and I have been there for my readers all other days. I do think that I need some time off now. I'm not going for a holiday. I'm going to be here only but I just want a break from blogging. I have also got a lot of other jobs which have piled up over the months. How about giving me two weeks off? How about if I come back with my posts in the last week of October or the first week of November? Okay, let us keep 27th Oct as the tentative date of my return to the blogging world. Meanwhile, if you do have any questions/suggestions, do leave them in the comments section below or just send me an e-mail.

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Happy Investing!!!


  1. what a massive selloff! there is no end to it!

  2. very true, uma! I think this is a good time to be on a break. The more you monitor the markets, the more heartaches u will have. Stay away or buy in small lots. It seems there's not too much of downside from these levels.