Tuesday, September 6, 2011

What is your ATM

Adapted from the SMB blog, read original post here.

Traders should identify a stock that due to technical and fundamental reasons has traded pretty much in one direction for months. That stock becomes your ATM. Keep it on your screen, know how it moves, feels and reacts. Since the stock has a clearly defined direction, you trade it only on one side. There is a lot to be said for having a directional view every day. SMB often refers to such stocks as 'stocks in play'.

Heromoto is one such stock. Long term charts are bullish. Fundamentals are good.I have shown the chart a few days earlier. Since then, stock prices have rallied handsomely.

Gold is also 'in play'.

How about more ideas from readers?


6 comments:

sudhin said...

Is RIL gonna be bullish if it closes >50 sma?[Pl refer to your bullish/bearish setup given last week] Any other points to note if this is a bull trap? If it closes >50 dma then could you please discuss this as this would educate us on identifying a break out, thanks.

abishekrav said...

as you always track gold sir,i do the same with silver..looks as though its gonna follow suit soon..i identified a bullish cup and handle in this blog which later verified and posted it as your post..now its been posted by a us site http://www.oilngold.com/analysis/research/silver-and-silver-stocks-forming-bullish-cup-and-handle-pattern-2011090619071/
its got targets of 65 dollars which in indian rupees could be around 105000

amarjeet said...

sir.
please explain on nifty.if we think nifty goes to 4500 -4100.if suppose wave 1 at 5200.wave 2 6000.
wave 3 4700.wave 4 goes above 5200.ad where goes wave 5.please explain full.this is only thinking.

anshul said...

m&m and bajaj auto are around their last top..charts seems bullish.. thats my ideas

Pi said...

I totally agree with the 'stocks in play concept', though i apply it to different markets..

I trade commodities actively.. earlier this year, silver was in play, and it seemed pretty easy to make money in silver. at the same time, i used to trade gold as well.. but over a period of couple of months, profits from gold were flat, whereas silver shone. Its the opposite right now.. seems making money trading gold is way easier now than in silver..

Its coz of two things, trend & momentum.. there is a strong trend.. and also good intraday momentum in either direction. so when i was making money in silver i was trading silver and stopped gold after some time.. and now im mostly trading gold and not silver..

The "in play" concept totally matters.. you wont make money trading everything..

vIJAYENDRA said...

sir
RALLIS has done good movement in favour of bulls. what you have to say on rallis or HUL.