As the U.S. markets fall day after day, with the Dow moving below 10,000 - a pychological number - there are questions on what our market may be doing.
According to me, the Indian market is already in a correction. My support level was 5480 on a closing basis. The Nifty closed below 5480 on Wednesday, and, remained lower on thursday, thus confirming the start of a minor down move.
This was the analysis. A key question is: how do I trade this?
1. Follow our trading systems. keep volumes low on long positions, while increase volume on short positions. In this way, we use position sizing to manage the directional view.
2. Stay away since we are in a corection, and, corrections are difficult to trade.
3. Shift to a lower time frame to take short term trades, only on the short side.
There may be many oother ways of converting our analysis into actionable ideas. How about some inputs from readers?