Wednesday, May 14, 2008

Tweezers?

Each passing day now makes taking sides very very difficult. Okay I will now try to put it this way -- there are now two patterns playing a role.
Firstly is a Tweezers that has been made between today's and day before's candlesticks main body. What does this imply? It signals that the top has been tested and unfortunately the bulls have not been able to close above this level on these occasions.
This would now become a resistance that has not been broken and may lead to the markets touching -- or continuing with their journey to lower levels.
How strong are the signals? - well pretty strong and only thing now going against this continuation of lower slide is that the world markets have ended strong.
To confirm the weakness ending -- the markets must close above the 5012 levels. That is the tweezers top.
So basically i am not giving a call today till the trend is established for sure. and mind you -- the trend is around the corner -- whether it is for good or for bad.
Unfortunately i am sitting on naked shorts that is not good and may have to come out with a bloody nose if i do not get a good opportunity to exit.
Cheema


allvoices

6 comments:

Uma said...

Cheema, always get into a trade with pre-decided stop-losses, it doesn't matter what the trend is, as long as you know your potential loss

preet said...

Uma,
Yes I do have predetermined stop losses -- but the nature of my job is such that there are times when i just do not have time to trigger them. If i do put in stop losses in the system then you know what -- there are deliberate spikes to trigger the stop losses and the market then goes the other way.
Like you said once, all this is to make an ass of the retail investor.
Cheema

niftyxl said...

arre waah cheemaji,
aap toh bahut handsome ho,haiyy meri nazar na lag jaye aapko ;)

by the wat y did u held(in pic) patiala peg in your hand,is it bcoz of loss or celebration of profits???
just curious to know.

and cheemaji,change your local time setting in your blog...its showing GMT instead of IST...

S S Cheema said...

Oh -- that is the national drink i am holding -- i hold it high in bad times and in good times both. Keeps my spirits high.
Will change my settings to IST -- thanks for telling.

Uma said...

yeh jaggu nehi sudhrega

cheema: I agree, on the deliberate spikes to trigger stop-losses. These days I just wait for the idiots to hit the stop-losses and then I enter my short.

Uma said...

for example, I knew bulls would take reliance to 2637 to trigger stop losses, so I bought puts when it crossed 2620 :D