If market breaks back into the triangle, it will invalidate it and the bearish case will weaken considerably. So thats my line in the sand right now. Either case I will look to hedge today on a pullback.
Chart -
Best.
Thursday, March 12, 2009
Another Squeeze on the Cards?
Looks like it based on the huge strength in all markets. And maybe this one will actually stick. As of now I dont have a clear trading plan even though I do want to hedge all my shorts with options - This rally may have some legs - I do not know at this point...Whenever the trend changes, its tough to get on board. At this moment I do not see anything to suggest a trend change - But I guess thats how something new starts always.
If market breaks back into the triangle, it will invalidate it and the bearish case will weaken considerably. So thats my line in the sand right now. Either case I will look to hedge today on a pullback.
Chart -
Best.
If market breaks back into the triangle, it will invalidate it and the bearish case will weaken considerably. So thats my line in the sand right now. Either case I will look to hedge today on a pullback.
Chart -
Best.
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2 comments:
Dear Lee,
I didnt get your strategy today.If you dont have any difficulty , please let me know.It will definately improve my learning process.
However I have followed the old fashioned axioms both yesterday and today.
1.Do not average your losses in an unfavourable trend.
2.see your loosers small,winners bigger.
And 2740-50 is an range from where nifty got an gap-down. will think afresh there wheather to go long or short.
:)
Hey Sajal - I did absolutely nothing today..Which is also why I did not post :) If I dont post, assume I did nothing..I am also confused and thinking what to do.
For me yesterday was a day I could do nothing or very little...
Its what we call a narrow range day..atleast a NR tradable day..Almost for 3 hrs or so, the market just stayed in a very narrow range...Absorbed all buying and selling and then moved up - short covering or buying I do not know..But I would guess a lot of shorts may have covered.
Its a moving target - Will watch next week for more clues.
See my next post for more thoughts.
Best.
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