Dejavu?

Extremely strong US market. Will our market remain true to form and take that as an excuse to take profits and sell off? Quite possible. Either way expect the unexpected and remain vigilant.

Replying to comments from earlier post -

Thanks a lot to everyone for your comments in the earlier post.

Sujatha, may have been a bad decision to short yesterday? Early? Maybe...I am not sure..still will work it out. I was very clear on it going to 5150 and above but still could control myself..lol..but its small so I am not too worried..I might also exit them today depending on what I see.

Nov Puts because of cycles only. No other reason. Oct also might work out but not sure how long this current bounce will run. Next week is a good time..cycles view wise..for us to turn down. Price is the grey area. 5200/5250 is still what I am thinking.


Not much more to say today. Same views as yesterday. My favoured scenario had always been a C wave - more bounce - into the 5150/5200 area. But even though I took some advantage of it, I could have obviously done much better. Its funny how the markets plays with our psychology isnt it? Still we are only human. We will make mistakes. The ability to cut it and go for the next trade is what will make a successful trader. I think this is one of the most important things I have learnt over the past 3 years and I think what everyone should learn - never to fall in love with a trade. Cut your losers and let your winners run. After all its just another trade.

Today could be interesting. As I mentioned, I did enter some long term puts and some shorter term NF shorts yesterday..Very small amounts but still I think I am early on this. So I might close some of them today on weakness. I think that might be the prudent thing to do.

If time permits, I will post my reliance and US markets analysis here a little later.

EDITS:

1. Covered all my pilot shorts on the early weakness. Not much of pilots were they? lol. Anyhow will play on intraday longs now..Market may be telling us its not ready to top..not just yet! I will update if I see something differently..For now things do not look too bearish. Market may have a date with the 5180/5200 area at a minimum.

2. Done with intra longs. Those were some good points to scalp. But beginning to look weak again. Will start adding shorts from here as we go higher.

3. I did add a quite a few shorts in there..Not very sure but it looks like this cycle has topped and we are going into the next 2.5 week low due sometime toward mid/end of next week. We shall see.



Best,
Lee