WISHING ALL READERS A VERY HAPPY DIWALI
Anshultpt asks if Saturday's truncated trading session should be considered in analysis, and, if so, in what way.
My Notes: I use these sessions in my analysis for two reasons:
First, the data goes into the database, so all scans, programs will consider the data. Trying to avoid these dates will result in complicated programming and not worth the effort,
Second, The markets did throw up a price, so it should be considered.
I use the Diwali day as a normal bar. Some analysis is ignored, for example, the day is normally a narrow range day, but that is not relevant due to the truncated trading times.
I think, there are no rules as such. You decide on a procedure, then follow it consistently. Consistency is more important.
Krishna asks: "I had heard you saying that sugar stocks are ready to go much higher from current levels whereas previously you advised to be cautious as it seemed to be a bubble..any reason for change in outlook.."
My Notes: Sugar stocks had seen a parabolic rally, moving up 4 times in 10 months, outperforming the broad market. Then. resistance at previous highs suggested that the rally may be ending. But, the stocks broke through resistance, and the trend should be assumed to be up.
Notes on the broad market:
I have a chart, which suggests : maybe and maybe not.