Thursday, September 4, 2008

Morning Call - What The two days of trading could bring

I write this post at 7:19 AM, so it is almost like a morning call for Thursday (today) and maybe Friday. Yesterday was a holiday in India.
Short term traders should begin by looking at the market environment.
US Markets S&P - down on Tuesday, on Wednesday.
Asia - Down on Wednesday, down as I write.
SGX Nifty - Down 58 points at 4460.
Nifty on Tuesday - Big surge leading to a breakout from two resistance levels - 4400, 4500
My Expectations for day trading/swing trading - Choppy market possible. This often happens after a big range expansion day (Tuesday). Keep volumes half of normal. A dip to 4400 is possible.
Strategy - This is an example of many strategies that can be used. Look for direction after first half hour of trading. If Nifty trades above the high hour range, then look to buy on small consolidation. If it trades lower, look to sell on consolidation. Stops may be at the other side of the range, or just beyond the consolidation.

Edited at 7:51 AM. Stocks to watch for a swing trade lasting few days - Hotel Leela, Indian Hotels.

1 comment:

Paavani said...

Dear Sir,

On a bullish day when there is a good gap up, what is the level at which i should be initiating a long trade from a day traders perspective?

On a bullish day when a stock opens gap up at R1(above pivot point) when should i initaite a long postion for the stock?