Sir I`m not sure how sustainable this rally will be ... but it may surprise you with its brilliance. OVERSOLD RALLIES can indeed be amazingly sharp ... almost incredibly so !!!

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Yup, I agree bubbu ! Also, my sources tell me that what we may see in the coming two days (sans profit-booking) has the potential to stun us (pleasantly) in as much as was the net cumulative `gloom` effect of the last 10 days. I frankly donno ... I take my steps as they come ! I`m just keeping my figers crosses ... just hoping that no one here in India comes up with the grand idea of banning `shorting`. That will muffle lots set ups !!...

Today I had some significant UNCOVERED positions in anticipation of my hunch of an OVERSOLD RALLY ! And, it did happen ... I was plain lucky (and a bit rational too perhaps). I knew that downside from 10K levels was quite affordable for my type of trades ... so I left them partly UNCOVERED. Of course, the end justifed the means ! Yes, bubbu, I`ve been able to conquer `greed` and now, at these abysymal levels, there is hardly any `fear` too !...

Have a look bubbu !

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Debate Rages: Sucker’s Rally or Time to Buy ?
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Posted Oct 13, 2008 10:39am EDT by Aaron Task in Investing, Recession, Banking Related:

On the heels of the worst week in history, the prevailing wisdom on Wall Street is the stock market is now cheap, especially relative to Treasuries and most especially for long-term investors,
With the S&P trading at 13 times expected 2009 earnings and 17.2 times on a trailing P/E basis, "buy the dip" is the mantra from many observers:

"The sell-off has gone much too far and stocks are poised to rally powerfully if the downturn is less severe than investors," according to The New York Times.

The "Ben Graham P/E" - which divides the price of stocks by their inflation-adjusted net earnings average for the past 10 years - is the lowest its been since 1989, The WSJ reports.

Even typically skeptical observers like Barron`s Alan Abelson and FusionIQ`s Barry Ritholtz were writing this weekend about the potential for a short-term market bounce of between 20%-30%.
That message, along with news of the U.K.`s injection of capital into big banks and Mitsubishi UFJ`s investment in Morgan Stanley, helped the U.S. stock market rally strongly early Monday, following the path of global proxies.

I would caution against reading too much into Monday`s action: the bond market and U.S. banks are closed in observance of Columbus Day while Japan`s financial markets were also closed for holiday observance.

More importantly, I`m highly skeptical Friday marked anything more than a temporary bottom for stocks, for a variety of reasons:

The continued lack of a coordinated global policy response, and the U.S. continuing to lag other nations in taking the most dramatic steps like insuring all bank deposits and directly injecting capital into banks.

Accelerating weakness in the "real" economy; ISI`s Ed Hyman dramatically reduced his GDP estimates through the second half of 2009 and predicts unemployment will hit 8.5% before the cycle turns.

Valuations tend to overshoot on the downside and bear markets historically don`t end until P/E ratios hit single digits.
Even after devastating declines in recent weeks, "buy the dip" remains the conventional wisdom, meaning sentiment still remains overly optimistic.

"The past week has demonstrated that trying to buy `close` to the bottom of a bear market can be a very dangerous strategy," Lowry`s Reports commented this weekend. Last week`s "series of 90% down days" - trading sessions where 90% or more of both price action and volume is to the downside - "is, at this point, solid evidence that the desire to sell has not been exhausted."

Veteran market watchers like Art Cashin of UBS and John Roque of Natixis Bleichroeder are using the 2002 lows - about Dow 7300 and S&P 775 - as downside targets. Yes, long-term investors should continue to fund their regular retirement accounts, as Henry and I discuss in the accompanying video.

But short-term traders - and those near or at retirement age - would be wise to keep those targets in mind.

Courtesy : YahooFinance
...

At the current Speed Of Trend, ICICIBANK will become OVERSOLD on 20th October, 2008 at Rs. 372.68.

Support & Resistance Levels for ICICIBANK for Tuesday :

R3 R2 R1 P S1 S2 S3
534.18 494.31 459.73 419.86 385.28 345.41 310.83

Support & Resistance Levels for NIFTY for Tuesday :

R3 R2 R1 P S1 S2 S3
3813.60 3661.90 3576.30 3424.60 3339.00 3187.30 3101.70

...

Sorry, SOT continues to say the following for ABAN :

ABAN is already OVERSOLD on RSI. Possible buying opportunity !

ABAN`s Support & Resistance levels for tomorrow are as follows :

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Yup, I do agree ... but then I suppose award of bonus shares is far more of a routine (and a mundane) task for the Company ... though it is so imperative for the investors !...

DUstocks, What a nice way of replying !!!!!!!...

Dear DUstocks, if this pullback rally becomes sustainable we would see tradeable rally for the next 2 days and at least by then we would be ready for a dip if it happens due to any global negative cues. This subprime issue is the prime issue nowadays and how long it will continue we do not know. If we bottom out hopefully money can again be made even in slight bear market. harish sharma...

DU I got the hint last friday when the DOW made a huge bounce back of 220 pts in last hour of trade and then slide down. I knew risk punters were pumping money for the monday`s rally. I think in my view DOW has bottomed out at 8000 odd. We are going to see a 3 day pull back and then a sideways very long term bear mkt for the next couple of months keeping in line with what the FED and the US govt keep doing ELSE we will tank down very badly if there is any slip up on that front. This is last chance BUSH has to save his country else DOW WILL TANK TO 4000 odd as said by Prof Shiller. ...

I haven`t received the bonus yet. Considering the share value and turnover, I would expect some proactive communication from the investor cell of the company about key milestones on the bonus issue. Strange indeed that there is total silence even on the larsen website....

Hi DUStocks. Pls look at the SOT for today and suggest if we can expect 1300 or above today? Regards, Akash......

I have not yet recd. the credit of bonus shares in my a/c. By when we should expect the credit of bonus shares. whom should i contact for this ...

All r frustrated...Hey guys SOT is not a buy/sell recommendation. There is no compulsin to follow if one is assured of self analysis of the market....We are all frustrated and waiting for a return on our investment at our purchase levels of 2400-2600. guys please relax.......