Thursday, July 1, 2010

Update on The Ultimate Momentum Signal - 1st July, 2010

 NAV Rally or Real Momentum ... ?

The Nifty futures opened lower on Wednesday and  traded positively till it reached the last days close of 5268 in the initial hours. Thereafter, it corrected 20 points and rallied to 5299. It again corrected some 30 points to reach 5268. At around 2.40 PM the European markets rallied suddenly on the back of a news release which said the Banks have utilised lesser refinance from the ECB than expected. The Nifty futures too rallied strongly in tandem with the European markets and finally closed at 5319. The market might have been helped by the half yearly  institutional net asset value management too. 
Nifty Futures - Daily Chart

The last hour rally has negated the sell signal and the market is evenly poised at present. The short position ended with a loss of 51 points. The market can still go either way. It can test the highs or restart a correction if the world market weakens further. Whatever the immediate move, the Indian market remains as one of the strongest markets  in the world at present.

World Markets

The rally in the European markets fizzled out by the close and the markets  there closed marginally positive with minor gains. The US markets were trading absolutely flat on the back of disappointing news on the employment front. The US S&P 500 index was trading at 1042 near the multi-month lows at 00 Hrs IST.

Updated Momentum Signal Spreadsheet

The updated spreadsheet showing the Momentum Signal as on the close of  30th June 2010, is given below.

The Momentum Signal has given a value of -30 as on Wednesday, indicating a neutral to negative momentum.

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 1st July, 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.
The closing values required for another sell signal has increased and are near to the closing values of Wednesday. All readers of this blog are once again requested to read and understand all the intricacies of trading the Momentum Signal System and the risk factors.

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