Monday, May 4, 2009

Monday morning - big gap possible

I finally got a much better video working. The "How to test a trading system' is reposted. You can actually see the numbers that I was discussing. Have a look again, at How to test a trading system. (This is a video with sound).

The SGX Nifty suggests a 100 point gap up. That is strong, bubble like momentum. Traders have two options : (a) Buy the gap, or (b) fade the gap. Such a large gap does not offer much more prospects for intra day gains. The possible trades are, (a) buy a severe intra day dip, or (b) sell a rally that begins after the gap open. The selling is done only if the Nifty continues to rally after a big gap, then begins a consolidation at higher levels. The consolidation acts as a stop loss for the sell.

The Market does seem to be going beyond itself, before the election. Please see my earlier post on the possible scenario if markets continue to move up before results.

3 comments:

gurvi said...

Thanks for sharing the Video. It is good and voice quality is also very good.
Do you plan to share more strategies?

-Gurvinder Singh

Nawal Kamboj said...

Appart from Trading Stategeis, I request Sukhani ji to appeal all to Cast Vote on 7th May

Ashish said...

Hello Sir!

You had made an interesting comment this morning on CNBC about the 3rd leg usually accounting as the intermediate top...Could you please elaborate a bit more on that?