Hi,
Good morning to all,the downtrend continues,you will be able to see divergences (price making lower low while oscillator not making a lower low)in various time frames,that doesn't mean we go up now,it simply means that the momentum on the down side is slowing.
this is perhaps a good time to take a close look at the charts and place tight stops
Good luck
Hi all,
ReplyDeletelots of profits accumulated from last week,
I have not calculated but across all stocks the trend remains down, SAR is not hit even on any one of them...HDIL,DLF,and bank nifty are giving quite a lot of returns
So can you hold on to your profits and sit tight ? or are are you feeling nervous before expiry (and fear a pull back)
Profit/losses both make us nervous,when we are in profits we become pessimistic and losses we tend to be optimistic(exactly the opposite of what we should do )
Cheers
hi,
ReplyDeletethe last line about our sentiments is so true!!
what levels on the nifty do you think is possible chartically in this downturn?
Hi Shazia,
ReplyDeletewell being a swing trader I dont believe in levels,markets will always surprise us.
So as long is its going down,it can go to any level.
If I had followed the levels I would have been out of markets by now ...but holding shorts since 5230 was breached last week.i dont try to predict the level ,just put a trailing stop and take profit on intra day oversold (that too on a big gap)....but look to add on significant retracement (close to low risk entry)
My comments would have disappointed you...right?
AJ
hi
ReplyDeletenot at all, on the contrary, i like the practical point of view on things, talking about levels was my fault and perhaps more romantic and untrue. I have a question though, do you think that the indian markets can be followed technically? The dow's technicals are much more understandable to me especialy the swing logic.. :)
awaiting your comments
Shazia
hi
ReplyDeleteokay since you were talking about level i will not disappoint you...you can check this blog
http://tradeinniftyonly.blogspot.com/
might help you ...lots of traders discussing levels..you will see a new "level" every 15 min
But be careful of noise and it may affect your trading
I dont have anything against the "levels"...but it has not helped me much in trading...so i generally avoid that...how ever you will notice that nifty stops at **80 (resistence) and **20 (support)...just a random observation about nifty(may be due to options strikes )
Can you explain what do you mean by,when you say
"Do you think that the indian markets can be followed technically?"
I do follow the markets technically...using prices as main indicator of market's direction and indicators like moving average and RSI
when ever you see anyone mentioning the word price,level,retracement etc...you can safely assume that the person is a technical analysis oriented guy.Fundamental analyst will talk about...PE,Sales,Margin,interest rates etc.
A J
hi
ReplyDeletesorry i wasnt explicit enough, its only that at times due to the US impact our technicals kind of go haywire and do not work as muh, maybe our markets are not as liquid or lacks in depth as the US markets, whatever the reason, I get confused. thanks for the blog , will see it too and thanks for your prompt replies.
I have learnt the methods and terms of technical analysis mostly from investopedia and various other technical analysts. I think the short term calls are mostly technical while long term is funamental. hope i am right?
@Shazia
ReplyDeletewell because India(and rest of the world as well )are getting linked more and more globally that's why you will see one markets affecting the other.We saw that in US housing markets crisis and how it affected us(we fell more than S&P!!)
You should never trade based on what US or any other market is doing (that will be like looking to London talking to Tokyo and ignoring the ditch in front of you!!)
Can you trade Suzlon/or any other stock based on what citbank/reliance is doing?
we may follow US broadly but not on point to point basis
and even in over all terms the fall/rise in india is much more than US markets....emerging market have higher beta than UK/US markets.
Reason may be what you said less liquid and less depth.
Short term is all about technical...but i prefer to wear my fundamental cap when market go down and forms a base...and search for value...entry and exits are always based on technical.
Stock screening is based on fundamental analysis.
I dont want myself to get restricted with one approach
I got greatly influenced by this book
William j o'neil - how to make money in stocks
Nice book, simple ,interesting and logical approach
Cheers
thanks :)
ReplyDelete