Thursday, March 22, 2007

The u.s , the dow and us.

Kapil Marwaha: dow nasdaq flat to down
Raja Kumar: yes
Raja Kumar: dow ran into 0.618
Raja Kumar: or will run in
Raja Kumar: soon
Raja Kumar: 12.49k
Raja Kumar: we're slightly weaker
Raja Kumar: see last time
Raja Kumar: dow did almost 0.5
Raja Kumar: we failed 0.382
Raja Kumar: this time dow might fail 0.618
Raja Kumar: we might fail 0.5
fact remains i don't know where the top will be 0.5/0.618 or 0.7?
maybe just a gap fill from 0.5.618??
and the bigger drop later?
gap fill target is 3760
truth is i don't know
hence i suggest buying put options for march target 3760 gap fill/50% retracement of initial rally (meaning no matter what the trend is 3556-xxxx wherever we stop. 50% retracement is insanely likely)

and for april potential target 3656-3570 retest
the stoploss is the price of the put option

the 3640 call taken at 80 rs already did both targets
100% and 200% gain
160/240 so that really should be sold now.

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