Selan Daily Chart !

Nifty Realty and few Stocks !

Baltic Dry Index and a few Shipping Stocks !!!

Weekend Views On Nifty !!!

The Weekly above and the Daily Below:

The Hourly Chart Below;

Lessons in Trading from Kung Fu Panda !!!

Nice movie with lot of philosophy thrown with animation. What struck me was that the message of the movie is very apt to our trading psychology!

In one of the scenes under a peach tree the wise old man Oogway tells his student master Chifu to let go the ILLUSION of control and start BELEIVING(Chifu has serious doubts that the big fat panda can make a dragon warrior). He says that things don’t happen as we wish but they happen on their own and take their own time. Same with good trade setups we should WAIT to let them happen and don’t try to preempt them! All we can do is nurture our trade and believe in it!

In the second instance in the movie when the Panda becomes the dragon warrior, and open the centuries old scroll to read the secret, he finds it blank with only his reflection on the scroll. Dejected by not seeing anything on the scroll he assumes that after all he wasn’t the true dragon warrior. Realization dawns on him later when his father the noodle soup seller tells him the secret ingredient in his secret ingredient noodle soup is NOTHING! Yeah he say there isn’t any secret ingredient and to create something special one needs to believe in that you are special. Bingo! There is no secret indicator or method to play the markets….Its only about you and your beliefs in your system. A nice lesson in trading I must say.

I BELIEVE THEREFORE I AM!!!

Caveat...Time to be a Li'l more watchful !

In my last chart posted on Nifty I had mentioned either we have very strong undercurrents or we are in for a nasty surprise soon. Whats surprising is Nifty has shrugged off most of the negative news as no-news (remember the saying no-news is good news!). On the other hand its giving more credence to news that yet to happen something like GST, Monsoon would be more than full filling etc etc.

 If you look around every single stock is making good money. You might as well spin a wheel to select a stock and it would certainly make you some money. The buy calls from any random person is doing well and number of people who say " I told you so" is increasing. None descript stocks from BSE and NSE which have very low volumes generally are seeing volume spurts and doing well. Stocks with low promoter holdings (as low as 20% ) are doing well. Stocks which have avg weekly delivery at 20% vis a vis trading volume are doing well. All chatrooms and twitter handles have a buy call which is the next rocket...next bazooka and not what. Fundamentals are frowned upon and "Bhaav hi Bhagwan che" is the new mantra. And yes the GOD (Price) has not dissapointed anybody yet.

It's an old saying " Cream Rises to The Top" but then so does Scum. In this rally a lot of Scum is rising too along with the Cream. Closing Gaps with Gaps is not a healthy sign as mean reversion is surely to kick in. 

So is it time to shout BEAR? No. Its just time to be very carefull about your positins. Its the time to be very very and very serious about your stops. Its time to be patient and check the GREED within.

Posting a chart: PE chart of Midcaps. See how far its stretched from its average. Something scary something screaming " Just Be Carefull".

Chart Courtesy LINK

Well ofcourse all of this does not matter to the day trader but a swing trader should be wary and carefull while choosing stocks and allocating capital.

Weekend views on Nifty !!!

Nifty : The Monthly Chart above...The Weekly Below...

The Daily Chart above...and The Hourly below...