The Strongest Market Signal

The two approaches to market timing—predictive and confirming—almost always give conflicting signals when analyzing movements of the same time domain. That is okay because they are used for different purposes and have different goals. If contrary opinion says that the market has reached bottom over the intermediate term, the other approach—trending indicators for the intermediate term—almost always indicates that the trend is still down. This is normal. Why? Because it is normal that investors become very bearish (furnishing us with buy signals using contrary opinion)as prices are plummeting and at their low. The large price drop makes the trend indicators point down, but the predictive indicators are showing that the end of the decline has been reached, and higher prices are ahead. However, there are times when the two approaches do not give conflicting signals, and these are very important to note. When predictive indicators such as contrary opinion strongly indicate higher prices, and the confirming indicators have already confirmed the start of a slight uptrend, that is the strongest buy signal there is. There is nothing more reliable or important than when this unusual situation happens. Why is this so? It is expected that, as prices move up, more and more investors will become bullish. When, however, the bearish sentiment stays high or even moves higher than prices also move higher, that is not expected, and so it is the sign of a very strong stock market. At these moments, what is happening is that no one believes the upward price movement is real or that it will last. This skepticism is the fuel needed to keep the movement going, usually for some time. The same holds true when both categories of indicators are confirming that prices are declining. If contrary opinion is extremely bullish and stock prices have already started down, so much so that trend-following indicators are confirming the downtrend, there is no more reliable or important sell indicator.

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End of Day Commentary and Overview on Nifty

Today in morning post on Nifty Fut written that

if trades above 5892 & sustains then see rally up to 5908-5929.

Nifty future made high at 5934.90.

Now hurdle is at 5924-5938. Decisive crossover may take it to 5955-5965.

IOB Q4 net tanks 89% on higher provisions, shares drop 7%

state-owned Indian Overseas Bank (IOB). The fourth quarter net profit (January-March) year-on-year tanked nearly two-fold to Rs 59 crore.

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Nifty Future for 1-3 Days of Trading Session

Ready for Short Selling by Intraday and Short Term Traders,…

 gold charms

Now, Question is what the market turning points?

Just watch careful 5918 and 5928 and 5937!

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Tradeable opportunity seen In Cipla

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Share Tips & Trading strategy- Banknifty hurdle at 12666-12700

BANK-NIFTY

BankNifty Spot

Above 12560 see rally up to 12620.

Hurdle at 12613-12630.

Crucial support at 12450-12436.

If trades below this zone then see slide up to 12403-1372.

 Arvind

Arvind

Close = 76.90

Sell On rise Below 78

Hurdle at 78-79.35

If trades below 76.55 Expect slide up to 75.75 to 75.40.

If sustains below 75.40 then see lower levels up to 74.25.

Support at 74-72.35

hul Hind Unilever

Closed below short term rising trendline.

Strong hurdle at 469-473 for shrot term trend.

Traders may short at near or within this zone.

Suppose to trade below 462 then see slide up to 459.

More down side up to 454-450 if sustains below 459.

 Exit all short position if trades above 479.

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