Thursday, April 22, 2010

Update on The Ultimate Momentum Signal - 23rd April, 2010

 A Roller Coaster Day .....! 

The Nifty Futures opened near the day's low at 5220 and rallied till around 2.30 PM to record a high of 5341.70. There after it sold off 100 points and finally closed at 5257.55, completing the roller coaster ride for the day.  The trailing stop at 5270 was hit during the early part of the day and left a profit of 60 points on the short futures position. The expected short covering rally has been enacted and the next direction of the futures remains uncertain.

  Nifty Futures - Daily Chart  

The European stock indices sold off today too by around a percentage each on increasing fears about widening deficits and further weakening of Greek bonds. At the time of writing this post,  the Wall Street has been slowly trading upwards after opening with significant losses following President Obama's call to the Street to work with him for enacting common sense rules.

The Updated Momentum Signal Spreadsheet

The updated spreadsheet showing the Momentum Signal as on the close of  22nd April 2010, is given below.

The Momentum Signal remained in the sell territory for the seventh day with  values of -80 for the futures and the index.

Projected Momentum Signal Close Values

The projected levels of closing values corresponding to momentum shift / neutrality / continuation as on the close of trading on 23rd April, 2010 are given in the table below. The table also include the projected closing values of BSE Sensex corresponding to momentum shift / neutrality / continuation.


   Please click on the table to enlarge. For more info on the above table,  please click here.

The triggers for the end of the downtrend have moved downwards and are placed at the yesterday's closing levels. The minimum values required for the resumption of the uptrend have  moved downwards. Although re-entries are tricky and the risk-reward returns are not very favorably placed, the re-entry level as per  the system is at 5229.50 ( High 5341.7 - 2.1 % ). However a re-entry is not advised because of the above reasons.

Cheers and Prosperous Investing and Trading !!! 

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