Stock Markets are said to be the psyche of the country. After all it is the sum total of all the emotions, good, bad and the ugly. We as a nation have always bounced back with resilience against the dastardly acts of terrorism. The serial bomb blasts over the weekend were sad, and like always the Market has failed to buck under pressure. Yes we had flat opening. Yes we had a volatile session. Yes TODAY WE WERE NOT GOING TO GO DOWN!!! The 5 minute chart on the left is a trader’s nightmare and I can safely say for the scalpers too. These are the days when the markets give you an all important lesson; a lesson in Patience, a lesson to try and keep yourself away from trading. A lesson in how you can get whipsawed. The hourly on the right has given a lower pivot which logically should now be stop and reverse level for people who are long. Nothing much as changed over the weekend, below 4282 we need to cling on to 4250 otherwise 4050 is looks the next pit stop. Whereas to move up we need to blow out 4360/80 to reach our first halt at 4400/10 (50 period MA) above that we have strong resistance at 4460. One more reason for a subdued reaction today was that tomorrow our Central Bank is having a quarterly review of the monetary policy. I guess much of the action will only be, after the meet is over. Things can be really volatile as this week is the derivative expiry week. So as the adage goes if you are in doubt better stay out!
"When you go in search of honey you must expect to be stung by bees."
Kenneth Kaunda
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