Market continues bull run

The market continued its determined Bull Run with gusto on Monday and Tuesday despite the fact that we are into the last three trading days for 2009. Yesterday’s trading pushed the all time highs to 3356 on the ASI and 3820 on the MPI (closing) while intraday it reached a record high of 3372 on the ASI and 3852 on the MPI. On Monday the ASI rose to 3348 and the MPI rose to 3823, on a sustained linear rise from start to finish.

Tuesday’s market reached a plateau after rising during the opening hours. Last Wednesday’s and Thursday’s minor slowdown brought the RSIs down to 80 from mid eighties and the indices ended inside the uppermost Bollinger Band easing somewhat, the overbought state in the market. The market is likely to trade within a range of 3300 to 3500 (ASI) and 3800 and 4000 (MPI) during the usually ‘thin trading and volatile’ last week of the year.

However, this year could be unique and ‘big’ players may start building their portfolios for 2010 this week taking advantage of the thin market. The down- side of the market is rather limited while the potential to shoot up unexpectedly is very high, despite the market being in record territory. Both ‘Government’ and ‘Opposition’ supporters are aggressively buying confidently expecting ‘their candidate’ to win.

Capital Trust Securities