...Have to admit yesterday's rally was a good one..I dont care much for rallies that show a big gap up and then do nothing for the full day. Yesterday's was good..Went and tested support at which I covered a big amount and then tried to reshort as we went higher. I say it is good because this is how a strong rally is built. Test support and then try to make a move higher.
Not that it makes much of difference. Today also looks like a gap up. So now I am uncertain how to deal with this. Do I cover? Do I hold and watch? Do I add to shorts? Dont know. Dangerous here either position. As I mentioned before, the Oct 12/13th date was when I was expecting a top to come. So still on target but price wise this is going much above what I expected. Today if it clears 5030 and stays above, it opens up the 5150-5200 range again. So lot of pain to take if you are short. So I am confused :) Whats new. If we go above 5200 without much of correction, then have to admit we might be going much higher. However I still think we have one more downmove lurking in the shadows which will come once majority is once again bullish. Too many unknowns out there..Infy results is another one..I have posted some thoughts on this in earlier post's comments section.
However, for today, will wait for clues after opening and act accordingly. Will post updates. I am holding some shorts so its a toss up as to what to do at this point. Will watch price action and make a decision.
1. Looks like going up..Covered almost all shorts..Will look to readd back later. Intraday scalping till then
2. Very uncertain here..Shorting back in slowly. They never make it easy do they?
3. Part booking and reshorting higher might be a good plan of action here. Will add back later. INFY results is also a wild card here.