Dow plunges 318 points; drops 3.5% for the week
The Dow is down almost 500 points over the past two days as investors pull out of stocks and emerging markets and stash money in safer assets like bonds.
Slowing growth in China and a move by the Federal Reserve to start cutting back on its easy-money policies has caused problems in many emerging economies, where currencies have come under intense selling pressure, raising fears of economic problems caused by rising inflation and capital outflows.
On Thursday, the Argentine peso plunged 15% versus the U.S. dollar, its biggest swoon since 2002. Similarly the Turkish lira hit a record low vs. the U.S. greenback.
Fears of an economic slowdown in emerging markets is forcing U.S. investors to reassess the amount of earnings U.S. multinational companies will get from abroad this year. The potential for less profit from abroad is also weighing on U.S. stocks.
Investors are also more willing to take profits after a stellar 2013 for U.S. stocks, given the current uncertainty roiling markets.
>>> NIFTY - As Update Last Weekly Review <<<
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Wrote last week that it might be an end of Wave 2. In such a case a big fall not ruled out.
>>> Happened & Yet to <<<
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Yes the suspect is still On for a Big downside. We need confirmation as the price should break the channel given on chart. If breaks then a deep fall should set in.
>>> Nifty - Hourly <<<
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Monday if there is a gap down opening due to a heavy 300 pts fall on dow, Nifty might break the channel support as i have marked on chart. Next Support comes from 6150, break below this support may confirm further fall.
>>> Bank Nifty - As Updated Last Weekly Review <<<
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Wrote last week Bank Nifty unable to cross the Lower channel of the Pitchfork. See what happened this week.
>>> Happened and Yet to <<<
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Yes once again failed to cross over - indicates another caution note for us.
>>> LT <<<
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LT booked first target. More fall coming next week.
>>> CENTURYTEX <<<
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Yes shorted at 313-315. More fall next week.
>>> ANDHRA BANK <<<
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We have shorted Andhra Bank too.
>>> Performance <<<
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