Weekend Thoughts

A more objective look at things that transpired last week and also a look at possibilities for next week -

As I alluded to in the previous post, the last week in US was QUAD EXPO week - Basically everything expired..We had a lot of games played by the market makers...A lot of manipulation...Yeah I know lot of you dont believe it...But the markets are manipulated! So big rally in US = Big rally for our markets...Nothing else...Did something good come from our side of things? Nope...Okay instead of looking for reasons, lets see what can happen next -

CHARTS - See those posted in the posts below this and the next.

So what I see is - as I think I explained last week, a move to 2700 area is almost surely on the cards...After that, it gets fuzzy...We could make one more move back up to 2820 area at which we have to see what happens...OR we break 2700, 2660 and continue lower. At this point since there has been a lot of base building at 2500, we might not break it any time soon...Maybe never...

So taking it one step at a time...Maybe the bulls are right and we pullback a little and mount a huge rally..But I dont see it yet...I will see how we react after our pullback and expiry before making these decisions..

I am an intermediate term trader...Still I do try to identify very short term opportunities which I do post here..You'll remember the wedge, the flag pattern etc..All of these made for excellent intraday trades....I do trade them also when I see some good stuff like that...Doesnt come all the time but when they do, its worth trading them...

Which brings me to my next point...There has been some debate on anticipation vs. reactionary trading...And Sajal raised some good points to counter..

Really you think about the wedge I posted earlier or the flag breakdown..Both of them worked perfectly...It was anticipation...correct? The point is, when will you react to them? 20 points lower? :)

Okay another example, in the charts in below post, we have 2820 area as strong resistance to overcome right NOW because of the falling DT line...NOW, IF I short here with stops above...Tell me - Reaction or Anticipation? :) Hope you are getting my point...And this is not TA? Think about it.

There are different methods to make money in markets...Do your own thang..But dont be so quick to dismiss others...

Most traders lose money some time or other..The main problem I have is that whenever I do this, I do so in front of a large audience in real time :)

Think about this also a bit...

Best.