Market Correction Or Collision Course ?

Stock markets lately is showing severe stress for the upside.Looking at over all globex we are overdue for a steep correction by end this 2 nd quarter.Market movers are waiting for vital numbers by end of this quarter es pl

1.Car sales numbers(Horrible) and also major manufacturing components supply disruption (Japanese quake effect)
2.Home sales (depressing)
3.GDP
4.deficit and debt ceiling numbers (Nice Uptrend)
5.QE2 officially ending (No more funds to funnel markets)

*my comments in () for possible market move.

Markets moved sharpely from the first week of MAY, And bears are now in control of this move.Intially they took down the stronger sector i.e commodities,energy, mining sectors then continued with rest of them.Commodities are the stronger among them, And Silver has shown proxy for entire commodity sector. Once this came apart the rest came too.Now lets cover the charts for Globex Stock Market Indices

United States S&P 500

Most of you have asked me what kinda of strategy do I use ? I use Moving Average Cloud with its variant parameter.(click for larger view and watch for cloud in chart below)

Now lets look more closely what exactly it is :
Prices closing under this band(s)
Red Line(Upper Band) : Warning alert for the traders
Blue Line (Middle Band) : Exiting the position
Black Line (Lower Band) : Conformation of downside

Above the cloud is going LONG and below going SHORT.It all depends upon what time frame your looking ? The chart i have here is monthly time frame for over 6 years.

Now watch closely S&P 500 chart it definitely a Picture worth of 1000 words (you can email me personally for more understanding or comment on this if you want)



India Stock Market NIFTY:

Forming a Head and Shoulder top with multiple left and single right so far.This market is weighting for the RBI interest rate hike along with FII/Local outflow from markets to guarantee fixed income. We are enter ing into higher interest rate regime for sure like early 80's style.Strong support around 12000 to 9000.Inflation is beast here.




Sanghai Stock Index

After having strong decade for manufacturing this market are due for higher to moderate growth.More downside to come.




London Financial Time Index

This market is dead based on pound valuation as more and more problems will come to queen(s)
home as deflation is kicking in those euro zone areas based on debt problems with them.




what fed has been doing all these months is just printing money and funneling them through (BIS) Bank International settlements which is nothing but bank for global banks with currency swaps to inflate the markets around the globe.Fed in past and future are worried about the collapse of markets but not the real economy, As money is not flowing in real system.When the market gets stressed out they go for another round of easing.So possible scenario for next round will be in few trillions as they will panic markets first in expense of collapse of economy.

Welcome to QE3 and this easing will have calculus representation any time market panics i.e

QE(n) where n has value of 1,2,3........Infinity

Will update Metal markets in my next post as most of my blog followers following silver action lately.

Good Luck and Happy Trading.