Market will go either up or down

There, I said it. Truer words have never ever been spoken. Markets will go either up or down. Pure genius, even if I say so myself. You have spent countless hours trying to anticipate the future direction of markets, and in the end this is all that it amounts to - Markets will go either up or down. But that's not important! What's important is what are you going to do when the markets go up or down? Do you have a trading plan? Do you have a plan for what you will do market when the market does not behave as you were expecting it to? Forget about that, do you even have a plan for what you are going to do when the market DOES behave how you were expecting it to? Now, that's a question worth spending countless hours trying to find an answer to.

Take care and good luck!

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Watchlist for next week

Another good day for the bulls on Friday and there are plenty of bullish setups out there. Here are a few I like for next week. The important levels are marked on the charts itself.

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Take care and good luck!

DHI

Not the best of days for the bulls but still some good looking plays there. Nothing unexpected as far as the overall markets are concerned.

Watch out for DHI at 19.35 level.

Also like KBH, DFS and PAL here.

Take care and good luck!

ASML

ASML, from the watchlist posted this weekend, is looking good here. Has broken the trendline today on good volume.

Take care and good luck!

Advice for new traders

I got a question on my mail asking for some tips for new traders. Some time back, I had written a post on the same. Here's the link to it.

Advice for new traders

If you have any questions on trading in general or financial planning/mutual funds in India, please send them on positiontrader @ ymail.com (no gaps!) and I promise to get back to you. I was myself helped by a few good folks when I first started trading, and its just my way of repaying that debt. 

Take care and good luck!

Positive diverenge in FB

FB is exhibiting a nice positive MACD divergence on the daily chart. I like the odds of a test of the 20 level here and would not want to be short the stock right now.

Take care and good luck!

Update: FB ended the day at 20.01, a gain of over 6% from when I pointed it during the course of the day. I hope some of you readers played it!

Watchlist for next week

Following are a few stocks I like for next week. The important levels are marked on the charts itself.

Y

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Take care and good luck!

Indian stocks watchlist

Long time, no see dear readers! I hope life and markets have been treating you well, exactly in that order of preference. With Johnny Cash playing in the background, Jack Daniels in my hand and the Mrs. away visiting the dear in-laws, I just remembered that I have a blog to get to. Here are some Indian stocks I like for the medium term. Before I mention them, I must repeat (I have said this before here somewhere) that my approach to the Indian markets is very different to that to the American markets. While with the American markets, I am strictly a momentum trader, with the Indian markets, I am more of a position trader, adding slowly and steadily on dips and consolidation periods and holding for longer time frames. Gotta love the 0% tax rates on long term capital gains!

TATA COFFEE

Above is the 3 year weekly chart of Tata Coffee. The big spike that you see in 2011 is when the news related to supplying Starbucks came out. Its been over 2 years of consolidation since then. Well, its having a crack at the 1000 level once again. Gotta love its chances after the long, strong period of consolidation.

CASTROL

Love the volume pattern of the last two months. High volume break of 600 level followed by a period of consolidation. Would love to see it consolidate some more. Due date for 1:1 bonus share allotment is expected anytime now.

The real reason why I like the stock is the three year weekly chart above.  Again, would love a couple more weeks of consolidation before it takes another crack at the important 600 level.

APOLLO TYRES

 

Again, needs some consolidation before it takes out the 95 level and heads to multi-year highs. Like it on dips here before it takes on 95.

Will be back with a watchlist of stocks from the US stock market sometime this weekend.

OK, The long black veil just came on. Time for a refill. Take care and good luck!