Sensex targets for 2008
OK, I know this may come across as cruel - on multiple fronts. But perhaps this early January article is worth a look now: Sensex may cross 27,000 in first half of 2008
The weekly chart of the Sensex shows that after a huge consolidation period (1992-2003) we are in a big bull run for almost last five years now. This rally is a large X-wave, which I had mentioned in my earlier articles also. A zigzag (A) — (B) — (C) pattern is the first part of this up move followed by a connecting pattern (X-wave).
This connecting wave is in the form of a running triangle that began in May 2006 and ended in August 2007. The presence of such a running triangle indicates tremendous upside potential for the Sensex. The calculations based on Neowave theory (By Glenn Neely) suggest that the breakout from such a triangle should be at least 1.618 times the largest leg of the triangle.
This puts the Sensex target at around 27,000 mark. The breakout could be as big as 2.618 times the largest leg, leading to a mind boggling figure of 39,000. Even if we keep aside this over-optimistic view, the target of 27,000 could be achieved and that too most probably in the first half of 2008.
WTF?
Do not believe in any predictions - from me or anybody else. Only 3 things matter:
- Probabilities (Is it more likely to go up or down? If it goes down, is it likely to sink?)
- Money management (What % of my portfolio should be allocated to a single stock? How much leverage do i want exposure to?)
- Luck (Probably most important, but least acknowledged)
Zat’s it.
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January 22nd, 2008 at 4:35 pm
all that mumbo-jumbo by those 3 jokers just takes up space on the internet. Your 3 points is pretty much what it comes down.
Very similiar to losing weight. People will go on and on about how to do it. But in essence it boils down to this:
Eat less, exercise more.