Thursday, May 27, 2010

Update on The Ultimate Momentum Signal - 27th May, 2010

    The International Markets, ( Read the US Markets ) Reigns .. !

The US markets opened with deep losses on Tuesday and recovered most of the losses by the time the trading ended. Therefore, all the markets including the Indian market gained on Wednesday. As the Nifty futures is trading all over the place in accordance with the whims and fancies of the international markets  position trading has become more difficult now a days. 

However, there is a way to reduce the trading risk in such markets. Traders may reduce the Position Limits to decrease the risk in such markets. A trade which turns out to be a correct one may still generate good returns because of the higher volatility.

    Nifty Futures - Daily  Chart 

The Nifty futures is still trading below the 50 week moving average (WMA) placed at 4915. The 200 DMA is at 4995.

World Markets 

The European markets closed with gains of around 2 % each, even though they were off from their daily highs. The US indices were trading with gains of 0.5 to 1 % at the time of this post.

The Updated Momentum Signal Spreadsheet

The updated spreadsheet showing the Momentum Signal as on the close of  26th May 2010, is given below.

The Momentum Signal has returned a -100 value for the consecutive eighth day. 

Projected Momentum Signal Close Values

The projected levels of closing values corresponding to the momentum shift / neutrality / continuation as on the close of trading on 27th May, 2010 are given in the table below. The table also include the projected closing values of BSE Sensex corresponding to the momentum shift / neutrality / continuation signals.

     Please click on the table to enlarge. For more info on the above table,  please click here.
Due to the computer system failure and some personal exigencies, the daily updates will be  very short  for the time being. I hope to provide the updates of the Momentum Signal System uninterrupted.

Cheers and Prosperous Investing and Trading !!!
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