Wednesday, August 15, 2012

Assam violence protests & Stock markets

Violence in different parts of India is only a sign of negative social mood across the country. Stock markets measure this social mood and moves in a patterned way which is predictable. This patterned behavior of market is measured using Elliott Waves.
This study of Socionomics has been coined by Elliott Wave International and we are extending that study to Indian context.
The social mood has been negative for quite sometime and stock market is also reflecting that. Indian markets had been moving sideways to down after making in high in February 2012 at 5630. It made a low of 4770 in June 2012. Stock market is the leading indicator of economy and reflects the mass psychology.
People normally think it as the other way around and expect stock market to move up or down after GDP data or IIP numbers. But please understand markets are always discounting what can be expected in future and the economic numbers that are coming out is of the past what has actually happened.
Elliott wave patterns help to look at what we expect the future to be and if social mood is going to go more negative or is turning positive.
The recent Assam and Myanmar violence protests at Azad Maidan - Mumbai, Pune and different parts of country is in a way reflects frustration and negative mood among the public at large. This is also a delayed response that we see in realty. Stock market is a direct reflection of this social mood and the move down from February 2012 to June 2012 was leading this event. Major bottoms are often followed by violence of a large scale, current one can be simply a small reflection of minor bottom formed in June 2012.
Write to us on to know what Elliott wave structure is telling us for Nifty and social mood.

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