Tuesday, November 30, 2010

Is another round of selling coming ?

Trend is still down and the pivot is at 5977 and the low of the current rally is 5690.

Today price has risen to the 34 ema and placed just over it. We need a 30 min candle close below 34 ema and below the low of previous candle.

One can go short if we get a 30 min candle close below 5815 with SL 5836 as of now. All the indicators are approaching overbought levels, indicative of -'soon coming to an end' of the counter trend rally. (We are not into prediction, wait for the signal!)

Please note all the levels are Nifty Spot.


RainMaker

NB:  Post was created in the night.  As I post this at 10:30 in the morning market is already trading down let us see how it  pans out.  

Friday, November 19, 2010

Nifty Down Trend Begins

Nifty has finally closed below the pivot.  Halting the intermediate up trend,  formation of Lower high will confirm the  down trend.  Trend for Nifty remains down until it gives closing above 6340.    5746, 5562,  5379  are the levels to watch from here on, if the intermediate down trend is confirmed.  On every rise sell Nifty.

TRADING IS AN ART

Once, there were two farmers who lived in the desert.  Both desperately needed to acquire water so they could survive the desert and support their families.  After working together to search the area, they concluded there was water somewhere in the area but they were not sure where.  So, they set out to find a water well. They started digging in similar locations between their properties. After they both dug for several days, the second farmer finally struck water. As soon as this happened, the first farmer could see it from a distance and ran over to the second farmer.  Seeing that he had stuck a huge water well, he asked the farmer, “You and I had the same tools for digging and have been digging in similar locations.  How did you find water and I did not?” 
The second farmer asked him, “How did you dig for water?” 
The first farmer responded, “I went and dug 50 holes 1 foot deep trying to get maximum coverage of my area.  What did you end up doing?” 
The second farmer replies, “Oh!  That is very interesting.  I dug one hole, 50 feet deep.” 
Many traders set out on the path of trading and do exactly what the first farmer did – they dig 50 holes 1 foot deep. If you are going to strike water, gold or oil, you will have to dig one hole, 50 feet deep.  The reason for this is a matter of mastery. To be a master at anything, you have to become so familiar with it, know how it works inside and out to the point you understand every aspect of what you are doing.  

Happy Trading !

Cracked Pot.

A water bearer in India had two large pots, each hung on each end of a pole which he carried across his neck. One of the pots had a crack in it, and while the other pot was perfect and always delivered a full portion of water at the end of the long walk from the stream to the master's house, the cracked pot arrived only half full.

For a full two years this went on daily, with the bearer delivering only one and a half pots full of water to his master's house. Of course, the perfect pot was proud of its accomplishments, perfect to the end for which it was made. But the poor cracked pot was ashamed of its own imperfection, and miserable that it was able to accomplish only half of what it had been made to do.

After two years of what it perceived to be a bitter failure, it spoke to the water bearer one day by the stream. I am ashamed of myself, and I want to apologize to you." "Why?" asked the bearer.

"What are you ashamed of?" "I have been able, for these past two years, to deliver only half my load because this crack in my side causes water to leak out all the way back to your master's house. Because of my flaws, you have to do all of this work, and you don't get full value from your efforts," the pot said. The water bearer felt sorry for the old cracked pot, and in his compassion he said, "As we return to the master's house, I want you to notice the beautiful flowers along the path." Indeed, as they went up the hill, the old cracked pot took notice of the sun warming the beautiful wild flowers on the side of the path, and this cheered it some. But at the end of the trail, it still felt bad because it had leaked out half its load, and so again it apologized to the bearer for its failure. The bearer said to the pot, "Did you notice that there were flowers only on your side of your path, but not on the other pot's side? That's because I have always known about your flaw, and I took advantage of it. I planted flower seeds on your side of the path, and every day while we walk back from the stream, you've watered them. For two years I have been able to pick these beautiful flowers to decorate my master's table. Without you being just the way you are, he would not have this beauty to grace his house."

 Each of us has our own unique flaws. We're all cracked pots. But if we will allow it, God will use our flaws to grace this Universe. So, as we seek ways to minister together, and as God calls you to the tasks He has appointed for you, don't be afraid of your flaws.