Searching for a Direction Concerns about inflation and hope for continued strong recovery boosted by infrastructure spending – markets are oscillating between holding onto one of these two opposing views but are not able to get clarity on either one. The Quarter-end and new month flows could play a big role in supporting the markets (more…)
All Sizzle and No Steak? Our models are not finding any meaningful signals in the post-Fed market action. Especially, no sustainable upside potential in sight. Of course, all this could change with the price action in a day (see positional trading model levels below). Positional Trading Models: As per the trading plans published Monday (09/20) (more…)
Models Sitting Out the Markets This Fed Day Our models are indicating to much heightened potential for choppy markets today, on the account of the Fed event at 2pm. Considering the static nature of the trading plans, our morning trading plans are sitting out the markets today. Positional Trading Models: Our positional trading models are (more…)
Positional Trading Models Flat till Tomorrow Having got the much-needed small retrace yesterday, the markets may not have much to go off of until tomorrow’s Fed event is out of the way. Especially, no upside drivers in sight. Playing from the flat or short side could be the best option for today, for positional trading. (more…)
Tightening the Take-profit Level on the Shorts Taken on Wednesday After selling a long and going short on Wed 09/15 – as published in our morning trading plans here – our positional trading models are now looking at potentially booking profits today. The bears are finally peeking out of their hiding today. Will the selling (more…)
Beware the Four Witches Today! Today being the Quad Witching day (options on four different kinds of instruments expire today – index futures, single stock futures, options on index futures, options on single stock futures), expect hightened volatility today. Beware sudden spikes in either direction, especially during the last hour of the trading. Positional Trading (more…)
Not Going Anywhere Fast The market internals point to many divergences across different segments which makes for a rough ride for a while – regardless of whether you are a bull or a bear. If taking new positions, you might need wide stops to let those positions play out. If you don’t have enough capital (more…)
Our Positional Models Turning Short After selling a long and going flat, our positional models are going to take a short position on the open following the index’s close below 4445 yesterday which has been the published take-a-short level. As we wrote in our morning trading plans yesterday: “The pattern of early session gains followed (more…)
Caution Signals Emerging The price action last few days is causing our models to raise some early caution to the bulls. The pattern of early session gains followed by losses behooves the bulls to turn a bit more cautious against jumping in. Our models indicate no bullish bias while the index is below 4515 on (more…)
No Bull. No Bear. In our last trading plan – published on Thu 09/09 morning – we announced that our positional models went flat after selling an open long position, with a directional bias shift to neutral. Over the two sessions, markets slipped through some of the support levels we have been publishing, confirming our (more…)
