Hurst Cycles Trading Software - Accurately Forecast Nifty and Stock Cycles

Monday, August 22, 2011

Bounce..for now

Ok we got the bounce. 4900. 4950 can come. I hedged yesterday with 4800 calls. Today I plan to roll that to either 4900 or 5000 calls. Now why did I hedge yesterday? Because in this intense volatility, it becomes extremely difficult to forecast cycles. Even my software is having problems placing the lower timeframe lows..let alone the higher timeframe ones. So I expect the 10 week low to come in around 6-7 days. But thats not what the Hurst software is expecting. So I have to go with my judgement. So I will go with my expectation that the 10 week low is coming and will coincide with the EW wave 5 down of this full wave 3 structure down. If I am wrong I will give some money back but overall will still be ok.

Today, I will cover the calls I have for a good profit and roll to higher strikes anticipating more bounce.

BUT since this whole month has been weak, expect expiry also to be weak. Longs might need to wait a little while more..maybe for a retest of the lows..maybe a bit lower to set some divergences. Somehow I dont expect a V shaped bounce.

I meant to post some charts but not now..a little later today.

Best,
Lee

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