Monday, March 22, 2010

It is choppy

The Nifty has been choppy since the past three days. After a big 600 point up move, such choppiness was only to be expected. There is no purpose in trading the Nifty as of now. This is not such a catastrophe, since there will be many other opportunities.

Mid Caps: Vertigo

Many mid cap stocks have patterns that suggest big moves may be coming (on the upside). But, when I look at their weekly charts for the last one year, I have a sense of vertigo, where stocks have moved up many times. Apollo Tyres, the current favorite has gone up from 12 to 74.  Most mid caps are doing this. What will happen when a correction starts? Worrying.

However, so far the market is cheerful, these patterns should be taken for trading. Just follow your stop losses.

4 comments:

Anuj said...

Best advice that always works "Just follow your stop losses"

ANAS said...

Respected Sir, its me again . As no one posted any comment on mechanical trading system yet, I founded it as an opportunity to get in touch with you. The following is my mechanical trading system (or what I assume to be a system, ]. I use daily charts , and trade only in NIFTY. I use MACD(12,26,9]. I short after, when the FAST line crosses the SLOW line, from above. (both are above 0] and the FASTline stays below the SLOW line , for the next three days. I short near the end of the third day. also, i use SLOW STOCHASTICS(14,3] and CCI(20 & 30 too], to ascertain OVERBOUGHT&OVERSOLD levels. Sometimes I just check the ADX(14] , to find the strength of the TREND(I Consider trend as my friend as adviced by you ]. The stop-loss is kept above the most recent turning point. The above principals apply also, when I go LONG (of course the opposite set] MY QUERY IS: is the system overall correct?, can you please suggest some alternate strategy of ascertaining stop-loss?, are the time frame of using above indicators correct? or will you suggest some other sets ?, many times I miss a considerable portion before I enter the trade, can you suggest some better method where I can take positions early and without facing any whipsaws? I understand and respect the considerable effort & time, which will taken on your part to advice on my query. I request a generous reply from you. THANK YOU ONCE AGAIN , for KEEPING IN TOUCH WITH US.

NPT said...

DEAR MR SUDARSHAN SUKAHI, GLAD TO HERE U ALWAYS, ACCORDING TO ME, MAREKET IS LOOKING UP FROM 25/03/2010 TILL 30/03/2020 & ONE CAN GO SHORT FROM 30/03/2010 TILL 8/04/2010 & COVER ITS SHORTS ONLY ON 08/04/2010.

THANKING U
NIREN P. TIMBADIA, 9969420599

Jazz said...

how to trail my stop loss. i've bought apollo tyres at 58 on a breakout. Even 30 dma is at 62 which is still 20% below cmp. Have not found any reversal signals on it. how do you exit a profitable position plz guide !!!!
http://img97.imageshack.us/img97/3879/apollo.png