10k index breaks again
May 30, 2006
I first started this blog when the index broke 10k on March 14th 2006. Having risen from there to a new high of 12,300 plus a month later, it has returned full circle to go down to 9,823 from where it bounced back up to close at 10,118. While fundamentally there have been no real changes in the last month, the pre-budget shakeout was inevitable, and the panic has been well and truly instilled. The Karachi Stock Market has been buggered out of shape in the last few days, a shorter’s paradise !
There will probably be more downside again and maybe a pullback to 10,500-700 but till the budget is announced on June 5th, expect a choppy fucked up ride and take the profit when you see it intra-day. If you have run out of Vaseline in the last month , buy more if you still want to play this market…. or wait a month or two for all the shit to settle and for the July results.
After a pullback of nearly 400 points yesterday the market opened and slid down 200 points . It tried to recover to about -85 points and the slowly got bashed again to an even lower level than Tuesday’s close. It finally closed 404 points down at 10,689.44 . 2moro’s ‘’Friday show ‘’ could see some pullback action again or get a further bashing to 10,300 before it breaks the 10k index which seems inevitable this month. The KSE-100 index is not alone in being bashed as it seems most of the world markets have got fucked as well. The Dow had its biggest one-day drop yesterday in 3 years & the FTSE also fell nearly 5% yesterday. Keep the Vaseline on your desk if you are long in the market !
As expected and hoped, the market recovered nearly 50% of its 7% slide this week, closing at 11,094.68 , 387 points plus. With the RSI at 28.52 , the lowest since September 2004 , some recovery was due as fundamentally nothing has changed and the market was totally oversold. Whether it continues back to 11,500 remains to be seen in the next few days. The Vaseline jars were given a rest today though they should not be put away as yet.
The Vaseline jars are back in action as the market has been bashed by 800 points, nearly 7%, since yesterday.Many punters with sore rectums will be headed to their local GP for stress medication, while the shorters have a fullhoist ! Due to the lack of any positive news in the near future and perhaps the UIN panic it has been fucked out of shape recently. While a pullback could occur 2moro, it could well head towards breaking the 10,000 index as it followed this similar pattern nearly 2 months ago. Even Mr. Long didn’t follow his own advice !Stay away and trade another day……
