SENSEX (S&P BSE Sensex) Index Analysis 07/04/2021as earlier we had predicted an other impulsive wave for better shorting position and we shorted it at 50363
Fundamentals:
as we know the system is Forcing the Covid-19 Vaccination to the public so it requires to reshut the country for showing it some seriousness and let the Culprit capitalists gets more capitalize and some Retail Section to loos on some positions.
we are facing another lockdown and it will effect the economy and it stimulate the market to make some retracements.
Technical Analysis:
now we are getting our Bearish Divergence with MACDs confirmation with the Head Fall of the Bullish rally and retest of the immediate Support we can now specify 4 Targets by Fibonacci Retracement.
these 4 Targets are having strong confluences with the certain levels in Price Action analysis.
we can target the 3 TP as soon as we the 2TP gets Trigged followed by some retracement and Distribution
SENSEX trade ideas
Sensex outperformance vs S&P 500 on the cards?Can you spot the pattern? The past 2 times the SENSEX has out outperformed the S&P 500, we have seen big bases, trendline breakouts and RSI confirmation.
Wait and watch to see if history repeats itself this time too.
If the ratio stays above the trendline for a 2-3 week period, it's game on for Sensex.
For educational and entertainment purposes. Not financial advice.
Benefits of short term investment๐ Benefits of Short Term Investment ๐
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๐ด Short-term investing offers flexibility to the investor as they do not need to wait for the security to mature in order to get cash. On the other hand, long-term investments can be liquidated by selling in the secondary market, but the investor earns lower profits.
๐ด Investors can make substantial profits in a very short amount of time.
๐ด It is less risky as money invested per transaction is substantially lower.
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Benefits of Long Term Investment
๐ Benefits of Long Term Investment ๐
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Reduces Transaction Fees (Cost)
Every time you invest, there is a transaction fee incurred. If you invest for a long-term and avoid repeated investments, you save multiple fees.
Tax Benefits (Tax)
Long-term investments are taxed at rates lower than your income tax bracket.
Stability (โ)
Long-term investments exhibit lower volatility compared to short-term investments.
Best Saving Option (๐งฐ)
Long-term investments serve as a good savings option for post-retirement, future home, or college, education, etc.
Compounding (๐)
Long-term investments grow at a compound rate of interest. Hence, the gain in this type of interest is substantial.
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Sensex / Nifty testing Fib resistanceMarkets went down drastically due to covid (Mar 2020), Sensex went down -30% .As people started to get more aware of covid, lockdowns lifting, stimulus from governments, vaccines all of them together pushed the market back to track quickly.
But markets didn't stop at the trend line, They are continuing to make higher highs and going to dangerous levels (As of publishing date, Sensex 30% above trend-line).
Sensex is retesting Fib resistance formed by the Covid. Two possibilities from the resistance
1. Market does a correction and come back to trend line.
2. Market breaks the resistance and continuous making higher highs due to greed, more money from government, new people entering the market. Which will eventually lead to very big bubble (Correction will be one of the worse ever)
What to do know ?
Don't panic sell/buy, Just expect the correction and be prepared for both ways. Keep some cash, so we can buy the Dip formed by these corrections
When does we get the opportunity to buy these Dips ?
Hard to predict (i accept it around 2022). As it's hard to predict, as the market declines, make a list of companies you want to invest (your shopping list), and buy small quantities at the Fib support levels (So overall you avg out you cost)
India Scares, ISM Disappoints, and Munger CursesAs it's been usual in recent weeks, India has been the main destroyer of sentiment in the financial markets. The pandemic is raging there. And although the central authorities of the country stubbornly refuse to announce a nationwide lockdown, individual states and the capital of the country are forced to declare it.
As a result, it becomes more and more obvious that India will not see double-digit GDP growth in 2021. The surge in the pandemic in the country has already minus about 7M jobs and triggered an increase in unemployment to 8% in April from 6.5% in March.
And then the ISM data came on business activity in the US manufacturing sector. Most of the elements, as well as the index as a whole, turned out to be below the analysts' forecasts.
One cannot help but recall the old rule of investors: โsell in May and leave the marketโ. If we analyze the statistics of the behavior of stock markets, including the United States, over the past few decades, it turns out that the worst time of the year for the market is the period from May to October, and the best is the period from October to May (the so-called Halloween Effect). So, statistically, now is the time to fix profits in longs and go into cash or even sell on the US stock market.
Meanwhile, the cryptocurrency market is undergoing tectonic shifts. Bitcoin, which at the start of the year with a share of 70% was essentially cryptocurrency markets, is rapidly losing its status as a crypto monopoly. The share dropped to 46%. Largely due to the rapid growth of ether, as well as Doge and Binance coins.
Charlie Munger from Berkshire Hathaway will remind you of what professionals think about the cryptocurrency market. During the Q&A session at the Berkshire meeting, he branded cryptocurrencies as best he could, calling them a disgusting development, useful only to kidnappers and ransomware. The position, of course, is quite an ultimatum, but it has a very tangible, reasonable grain.