January 27, 2016

KITEX down 60% off recent highs

Some interesting analysis as to how some pundits got it wrong while other people (forums) smell a rat.

Market outlook

Daily charts
- trend is down on daily charts
- strong resistance around 7550 levels
- option writing support 7200 resistance 8000 (FEB series)

January 25, 2016

Reminiscences of a Stock Operator

Excellent book... read this at least once every year.

Now don't say you have the pdf file... you should have a book which you can hold in your hands and read few pages every night.

The Process of Judging an Investment Process

A couple weeks ago I looked some of the reasons behind the fact that smart money tends to chase past performance. I received a couple of good follow-up questions from people in the industry who were curious about my thoughts on how to judge a portfolio manager or investment process.
Putting together a portfolio using a manager-of-managers approach is extremely difficult. Not only is it tough to beat the market, but it’s also very hard to put together the right type of organization and team in place that can successfully perform the due diligence and monitoring required to judge a group of money managers.

HIND ZINC expanding triangle difficult to trade

CESC at long term support on monthly charts

INTELLECT having resistance around 245 levels

INDIGO almost back to listing price - no charm left?

Market outlook

Daily charts
- 2 consecutive days of higher high higher low
- see chart; observe strong resistance around 7500-7600 levels

Trading psychology - issues and how to deal with them (video)

January 24, 2016

GLENMARK monthly charts beautiful

EXIDE v good support around 95 monthly charts

ESCORTS strong resistance around 147

DISH TV strong resistance around 95 levels

IDEA near support on monthly charts

Norway's Biggest Bank Demands Cash Ban

Why are governments suddenly so keen to ban physical cash?
The answer appears to be that the banks and government authorities are anticipating bail-ins, steeply negative interest rates and hefty fees on cash, and they want to close any opening regular depositors might have to escape these forms of officially sanctioned theft. The escape mechanism from bail-ins and fees on cash deposits is physical cash, and hence the sudden flurry of calls to eliminate cash as a relic of a bygone age — that is, an age when commoners had some way to safeguard their money from bail-ins and bankers’ control.

Stocks trading above last month's high

MARUTI at good support

M&M bullish above 1220

GAIL showing strength in this correction

COAL INDIA resistance around 305

RPOWER at supports

January 22, 2016

Top gainers charts


Market outlook + weekly update

Weekly charts
- trend is down on weekly charts
- as expected, NF takes support at lower end of channel
- upper end of channel around 8000 levels

3 components of trading

January 21, 2016

Trading as a way of life - must watch video

Market outlook

Daily charts
- trend is down on daily charts
- today markets closed in negative; AD was positive
- trading range was within previous day's outside bar
- sustaining above 7500 will be bullish in short term

Emotional burden of trading

Emotional discipline is what matters

Be indifferent to the outcome of any trade

Stop watching TV, newspapers if you want to be a good trader

Start investing for long term

Markets are off 20% from their all time highs.

Good support is expected around 7200. If this breaks, we have even stronger support around 6500 levels.

In other words, if you are a long term investor, the region between 6500 and 7200 will offer good investment opportunities.

Which stocks to buy?

Interesting reads

Is China's "National Team" Now Bailing Out US Markets?

Many people wondered what the trigger for today's massive short-squeeze was. We may have found the answer.Right as the "Most Shorted" stocks started to soar, someone decided to buy offshore Yuan with both hands and feet (yes in the middle of the US day session). This held up until the NY close... and now offshore Yuan is fading back fast. So did China's "National Team" step in to save the world today?

War On Cash Escalates: China Readies Digital Currency, IMF Says "Extremely Beneficial"

Remember when Bitcoin and its digital currency cohorts were slammed by authorities and written off by the elite as worthless? Well now, as the war on cash escalates, officials from The IMF to China are seeing the opportunity to control the world's money through virtual (cash-less) currencies. Just as we warned most recent here, state wealth control is the goal and, as Bloomberg reports, The PBOC is targeting an early rollout of China's own digital currency to "boost control of money" and none other than The IMF's Christine Lagarde added that "virtual currencies are extremely beneficial."

It Is Now Cheaper To Rent A Dry Bulk Tanker Than A Ferrari

ISIS Cuts Fighters' Pay By 50%, Cites "Exceptional Circumstances"

"Provisions will still be distributed twice a month as usual"...

January 20, 2016

Top losers this month/ year

Market outlook

Daily charts
- trend is down on daily charts
- today, markets closed 1.7% in red but formed an "outside" bar
- AD negative; VIX up 14%
- option writing not giving clear clues
- expecting good support around 7200 levels on weekly charts

Nifty Can Bounce Till 8200-8400 Followed by Crash Again

Nifty Can Bounce Till 8200-8400 Followed by Crash Again – Analysis on 17 Jan 2016

 | January 18, 2016
Nifty opened gap up at 7561 but failed to sustain at higher levels and trade with weakness for rest of the day. Nifty declined more than 130 points from day’s high to register day’s low of 7427 before closing huge 99 points down at 7437.
On Friday, I expected a decline below 7425 again without breaking above 7633 and suggested to buy Nifty puts as stoploss was huge. Nifty declined till 7427 without breaking above 7633 and all Nifty put were near to double. Let’s have a fresh look at latest Nifty charts for latest scenario.

January 19, 2016

Market outlook

Daily charts
- trend is down on hourly charts
- first time in 11 days, we had higher high higher low formation
- AD was positive; VIX dropped 8%
- for trend reversal, markets need to form a swing high and then cross it
- above will take some time
- deep support 7200 immediate resistance 7600 and then 8000

Nice post from Nassim Nicholas Taleb

Why you should not get carried away by your class toppers or gym body builders

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