Sunday, October 5, 2008

Stocks Poised for a big Move

PFC (Power Finance), State Bank and PNB futures are suggesting a big move is coming in their prices. The direction of the move is unknown, it could be up or it could be down.

Time is also an unknown factor. The increase in volatility could take place tomorrow, or over the next few days.

Then, when will such a breakout take place? Soon, but this could mean a day or many days. What is the direction of the breakout ? It could be up or down.

Yet, the fact that a significant move could take place is useful, tradeable information.

I track such futures on intra day charts. I also set some trend parameters which help me to identify a new trend. When the chart suggests a new trend, I will take position based on the intra day move, which requires a tighter stop. Often, such trades work well.

There is risk of significant loss in futures trading.


suseem said...

dear sudarshan ji,
let the market stop where-ever it wants to stop...indian heavywieghts have lost a lot of weight dancing to the hard rock(tough it started with northern rock).once we are done with this,wat are the signs to look at to find the next performing sector in the bull market to might be banking,infra(infra has to grow if india progresses but poeple will spit out the bitter taste thats wat i worry)some even say biotech!!!veiws regarding this will be highly appreciated

suseem said...

maruti liya..bhagwan ram yaad aa rahe he
hdil liya...dil tut gaya
jet liya...hawa me tata karna pada
bata raha hu tata thik tha
bombay dyeing liya...bonb futa ,now i am dying
orbit liya..orbit chewing gum bhi khane k paise nahi rahe
rpower liya...ghar ki light tak kat gai
bhel liya...paani puri khata hu
lnt liya...phir pata chala...its LONG TERM
gitanjali ko de di shradhanjali

sensex niche gaya to log upar(lok wasi),sensex upar to log niche!!!

buy amrutanjan,dabur at least their product are supposed to be pain relievers