Friday, November 19, 2010

Morning musings

A trader should have no opinion. The stronger your opinion, the harder it is to get out of a losing position. – Paul Rotter

Our charts on the Nifty give a consistent message - there is support in the 5950 area. We are in a bull market, so trader should try to buy dips, until....
If this support breaks on a closing basis, then short term traders should assume that more downside is coming. Our own views are worth nothing. We have to listen to the message of the market.

Vix is an interesting tool for short term traders. When Vix starts rising after a decline, this is usually a sign of market volatility as also a possible fall in prices. When Vix starts falling, this is often a sign of rising prices. I
have given a broad picture. Traders have to develop their own methods.
Oh, about the GM IPO. The issue price was 33, it opened above 35, then closed around 34. Rcom anyone?

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