Tuesday, May 31, 2011

Watchlist

With the futures pointing to a gap up tomorrow, here are some of the stocks that I will be keeping an eye on.
 
LAVA - Nice results and volume on Friday. Wait for a break of 7.15.
 

KKD - Lovely volume pattern. Going to wait for a pullback though.


CY - Nice volume on Friday. Wait for a break of 24.


MO - Wait for a close over 28.

 

Take care and good luck!

Monday, May 30, 2011

Trading from India

As the regular readers of the blog know, I haven't posted much during the last couple of weeks. In spite of this, the blog has seen regular traffic and increase in number of subscribers through the blog feed and followers on twitter during this time period. Thanks to all you readers for your support! 

The number of posts, though still pretty high compared to most blogs, have generally reduced in the last few months. I try to keep my personal life as well as my opinions on anything else but the markets away from this blog but I feel I owe you regular readers an explanation for this decrease in output. I started trading while still a grad student in States, and having got my PhD, decided the time was right to move back to India and did so last August. The time difference makes it hard to be as prolific with the blog as I once was but I shall continue trying my best to blog my thoughts as frequently as possible. This blog is something that I literally built from scratch, and though the income from it is pretty much insignificant, the feeling of pride that comes from having built something that now enjoys such wide readership from over 100 countries in the world makes the effort more than worth it. Also, the fact that I can help new or struggling traders out there and give something back to the community, no matter how small my contribution might be, is more than enough reward in itself.

As a side note, I trade the Indian markets now as well (I still trade the US markets) and it has proved to be quite an interesting experience. The Indian markets are in a stage where you have a lot of people promising 90% winning trades and unbelievable returns. We all know how that works out. Another thing that has struck me is the lack of any good technical analysis material on the Indian markets. There is a lot of good fundamental analysis out there but nothing much at all as far as technical analysis is concerned. I know this blog enjoys a large Indian readership. Feel free to email me at positiontrader @ ymail.com (no gaps) if you have any questions on Indian stocks, portfolio analysis or technical analysis in general. I might start a blog on the Indian stock market in the near future, time permitting.

BTW, my being in India also explains tweets regarding Crown Royal and Jack Daniels when its morning your time. As it turns out, it actually IS 5 o' clock somewhere!

Take care and good luck! 

Sunday, May 29, 2011

The week ahead

The bulls made a comeback in the latter half of the week, but the future don't appear too bright for the bulls here. Following is the daily S&P chart. Here are a few points to consider before you overcommit yourself to the long side:



1. The market seems to be channel bound since last April and got rejected right on top of the channel last Friday.

2. The volume has progressively decreased during the last three up days.

3. Resistance looming right ahead in the form of MA(20).

4. 1338-1340 have act as tough resistance levels in the past and the same can be expected this time too.

5. Most of the sector charts got rejected at major moving averages on Friday. The move up has been on relatively lower volume. Here are a few of these sector charts.








All the above doesn't mean that I will not be playing the market to the long side in the coming week. Just that I will be making sure not to overcommit myself to the long side. For that, I would wait for a break of 1345, for that would imply higher highs being finally formed on the S&P.

Take care and good luck!

P.S.: Did you know this blog is being written from India since last August?