Wednesday, April 22, 2009

Getting ready for Wednesday Morning

This is my third post after Tuesday market hours. An earlier one discussed refinements in the 15 minute rule, and can be read at more-on-15-minute-rule.

At 7:00 AM, I hope traders have woken up, getting ready for the trading day. Some walking, jogging, Yoga or other exercise is required to face the ups and downs of trading during the day.

A review of the American markets tells us there were gains in the Dow, S&P, Nasdaq. A quick look at http://www.bloomberg.com/ will tell us how the Asian Markets are doing, but as I write, it is a bit early for that.

What is your market view for today ? I always have a view on the market. I am wrong, sometimes I can change my views to go with market flow, sometimes not. But, a view is essential.

Brett Steenbarger, Trading Coach, says in trading-by-themes
Quote
One of the most important calls an active trader can make is the dominant theme of the day's trade. Sometimes a news or earnings report will set the theme of the day. Other times, we will see themes carry over from trade in Asia and/or Europe. For instance, we may see strength in oil and other commodities overseas, and that will carry over to bullish trading among materials and energy shares.
Traders who become caught up in the tick by tick action of their particular stocks or indexes often miss these themes--and shifts in themes during the day. Much of the financial world is trading globally, following intermarket relationships and macro themes. Knowing those themes can help you anticipate ways that your particular stocks, ETFs, and indexes are likely to trade during the day.
Unquote

4 comments:

Ashu said...

thnx sudarshan sir for the idea of trading-by-themes. I'm also a strong follower of this themes and I've also written about this in my blog too hope you can give some insights
www.niftyswings.com

btw you're my all time favourite tech analyst. I hope to learn from you consistently.

Regards Ashu.

Bhooshan said...

But isn't TA all about following the system? I would think a view on market as per ones analysis should be there before you start the days trading. Following the themes sometimes may become subjective to interpretation like yesterday when US markets tanked but India was flat. Thanks

Ashu said...

bhooshan effect of U.S market is limited to our openings and not more than that. See when U.S indices are down by 3% be got a gap down opening and then rbi rate cut theme picked up the market for sometime. So it goes like that as per me.....

solo said...

Hello sir,
Your efforts are commendable.
I've some queries--

1.What would you suggest to a trader who does'nt have access to charts?

2.Since it seems bottom is in place what could be the possible level at which one should think of investing(as many of us were out of the market pre-elections)?