Confusion reigns supreme. I see lots of traders predicting new highs to be made soon and on the other hand many traders having a diametrically opposed opinion of the markets. All scenarios sound great and extremely plausible. The truth is: Nobody knows what is going to happen. Let the bears and bulls do their work and battle it out. I’m just sitting on my hands and waiting for more clues. In the meantime I closely watch how potential new leaders are building pressure.
RDY – Dr. Reddy’s Laboratories is a great example for a NYSE listed stock from India that is acting very well right now. If the markets are to move up again at some point in time RDY sure looks like it will be a go to stock outperforming the indices.
Up-to-date RDY – Dr. Reddy’s Laboratories chart on my public list.
RDY is clearly one of the strongest charts when it comes to American listed stocks from India. It has no overhead resistance and trades at all time highs. From a purely technical standpoint the conclusion is that ‘there probably is a reason for it’.
Gold is slowly creeping higher but silver has stopped leading which could be a potential warning sign. GDXJ and gold miners are not looking that good. Protect your positions with stop losses and let the charts guide you as opposed to trading your opinions. Sometimes the markets need time to sort things out. The best you can do when that happens is to reduce trading activity and avoid overtrading.
Predict? Yes. That’s implied when you make a trade. Just don’t stick to your predictions if the market tells you something different.
My public list with all my charts can be viewed here:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2791469
Buenas noches!
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