Thursday, September 22, 2011

Time/Price Alerts Latest - Nifty

Friends - I had put this chart in the beginning of the series itself and clearly mentioned that the pink and yellow squared dates are very very crucial for Nifty. I had categorically also stated the importance of 22nd September as it falls into a crucial zone in line with the low of 4720 made on 26th Aug '11; on top of that, it fell on the Fall Equinox. Tomorrow, we will be exactly 21 trading sessions away [A Fibo number] from the low of 26th Aug '11. Monday, we will be 55 trading sessions away from the swing high of July [again a fibo number; you may refer to the earlier charts I had uploaded as a tribute to Shri Mallesh Goudji]

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On a smaller scale / fractals there are some delays in manifestation of certain price actions but on a bigger scale they are not. Please ensure that you pay attention to hedging positions in futures and buying options of the right strike at the right price as the premium burn rates are very quick. I hope by now at least some of you are getting the importance of keeping track of time as well along with price action and volume action.

Looking for a short-covering session tomorrow but it may just get delayed. As per this square attached, the hint it is giving is that tomorrow's session and Monday's will in all probability be opposite to each other; i.e. if the losing streak comes tomorrow, then the short covering will come only on Monday or vice versa. However, in either case, tomorrow is not the time to shop for Puts or Calls as we have a weekend in between. The burn rate is going to be very high for the options as VIX will calm down by Tuesday or Wednesday IMHO.

Please do not go for tukkas in the 'hope' that the positions will end in profits. More will be anyways there on Weavologic and EW Counts. 

1 comment:

reachnagraj / theknight16 said...

To add - Tukkas must be taken on a well studied chart and just 1 or 2 lots maximum with tight stop losses.

The tukkas I mentioned in the post above are like randomly buying some totally absurd options like Nov 4000 PE, Oct 5500 CE etc. Such options are being sold by hedge funds just to receive premium credits for the depely ITM Options they take.