Indices Update - November 2015

Indices Update – November 2015

The next meeting of the Federal Open Market Committee (FOMC) is scheduled for December 15-16, 2015. While there is a lot of hype created around rate hike by Fed, all successive meetings of the FOMC in the past have not been successful in increasing the rates so far despite a long stretch of period of superb data announced for past so many years.

Whatever may have been the set of reasons for the two Fed chairpersons, Mr.Bernanke and Ms.Yellen, for not increasing the interest rates, at various milestones in the past, it will now be increasingly tough for the incumbent chairperson to announce a rate hike in the near future in wake of the slowdown in the US and parts of the global economy.

I continue to maintain my view as mentioned in one of my previous posts that the US stock market indices, DAX and Nifty are at a stage from where the journey is only sideways to downwards. The festive season may bring some cheer to the indices in terms of sales/ consumer spending but that will only be a temporary respite.

Given below are the updated charts of Nifty, Dow Jones, DAX and Shanghai Composite (SSEC) till October 2015.

Best wishes for the festive season.

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Disclaimer:

These extracts from my trading books are for educational purposes only. Any advice contained therein is provided for the general information of readers and does not have regard to any particular person's/ corporation’s investment objectives, financial situation or needs and must not be construed as advice to buy, sell, hold or otherwise deal with any commodities, currencies, securities or other investments. Accordingly, no reader should act on the basis of any information contained therein without first having consulted a suitably qualified financial advisor.