Stock market lower as predicted

Summary: Our subscribers took a short position in indices at higher levels of Friday.


US Market

The market is trading as per our prediction. The market is again headed lower today. At Thursday’s Asian hours, S&P500 made a low of 4106 and remained higher till Friday’s closing. At Friday’s higher levels, it was advised to take a short position (S&P500 @ 4345-4350 and NASDAQ). Last Friday, S&P500 closed at 4384, DOW closed at 34058 and NASDAQ closed at 14189 while RUSSELL closed at 2036. We predicted that the market would again fall from Monday.

Today, S&P500 made a low of 4259, DOW made a low of 33420 and NASDAQ made a low of 13698 while RUSSELL made a low of 1985.

Until 2nd March 2022’s US closing, the market is expected to be downward. A bottom is anticipated in the said timeframe. It is possible that previous low of 4106 for S&P500 may be breached/retested. At 3rd March’s Asian opening, the market will reverse/shift to an uptrend. Thursday and Friday are expected to be positive.

Book 50% profit in the short position of indices at CMP and hold remaining position with S/L of Friday’s high. Book full profit in the short position of S&P500 below 4200 and start accumulating positional buying.

At the closing of 2nd March 2022, one can accumulate blue-chip stocks such as TSLA, MSFT, NVDA, CRM, ORCL.

The reversal that starts from 3rd March will continue for a reasonable time in which we expect an upward movement of 15-20% in indices. A major bullish move is possible with some volatility until the first week of April 2022. The previous all-time-high of indices may be retested or crossed.

Saturn-Mars-Pluto conjunction in Capricorn happens on 3rd March’s Asian opening. The last time this happened was on 23rd March 2020. From there, the market witnessed a sharp reversal.

History about Saturn-Mars-Pluto conjunction in Capricorn:

  • 21 March 1990: market witnessed sharp upward movement in 22 months and went up significantly.
  • 10 February 1992: market made a bottom and went up significantly.

Positional traders must be ready to accumulate stocks and indices.

The Russia-Ukraine situation may start to cool down from 3rd March 2022 or its impact will be ignored by the financial markets.  

Indian Market

Indian market is expected to open lower in today’s session. Nifty may retest 16200 by 2nd March 2022. Bank Nifty may breach 35000. Wait for 2nd March 2022 to enter into the long position. Make long position – 50% on 2nd March 2022 and 50% on 3rd March 2022.

At today’s closing, cover 50% of the short position in indices. Hold the remaining position for 2nd March 2022.

The market shall remain closed on Tuesday owing to Mahashivratri.

Positional traders should keep cash ready to buy stocks for significant upward movement. Details of stocks shall be shared in the daily newsletter of 2 March 2022.

Precious Metals

It was advised to long Gold on Friday with S/L 1878. Today, Gold made a high of 1931. It is currently trading at 1915; book 50% profit at CMP. By 2nd March, it may cross 1950. It was also recommended to long Silver at lower levels on Friday. It made a high of 24.79 in today’s Asian hours. By 2nd March, Silver may cross 25.