Tuesday, August 3, 2010

Update on The Ultimate Momentum Signal - 4th Aug. 2010

  Another Day of Flat Trading ... !!!

Belying all expectations of a probe of the 5465 to 5475 levels,  the Nifty futures traded almost absolutely flat for the entire trading day on Tuesday. It opened at 5440 and recorded the day's high of 5448 in the initial hour itself.  Finally, the futures closed at 5435 after recording it's traded low of 5418 in the middle of the trading session. As there is no meaningful trading action in Nifty futures these days, it seems that the market is recording lower turnover  these days.  Many brokerages are said to be finding it tough to bring in enough commission income  due to the lack of trading interest by the retail investors. As very few stocks are moving, it is advisable to trade in  very small quantities or even abstaining from trading.

Nifty Futures - Daily Chart  

The Nifty futures are still trading in the previous trading range and there is no significant change to the technical position of the markets.

World Markets

After the sizzling rally on the first trading day of the new calender month, it seems that the markets are taking a breather on Tuesday all over the world. 

Updated Momentum Signal Spreadsheet

The updated spreadsheet showing the Momentum Signal as at the close of the trading on 3rd August, 2010 is given below :

Both the Nifty future and the underlying Nifty index have returned neutral values of Momentum Signal on Tuesday.

Projected Momentum Signal Close Values

The projected levels Momentum Signal values applicable to various ranges of closing values of the Nifty Futures, Nifty Index and the BSE Sensex,  as at the close of next trading day, ie. as on  4th August, 2010, are given in the following table.

  Please click on the table to enlarge. For more info on the above table,  please click here.  
Readers of this blog may please note the following  'Risk Factor' which is being  repeated almost daily these days. The markets are trading in small ranges at the top end of a slow climb and for all practical purposes the trading is range bound. Range bound markets are not suitable for the  profitable trading of the Momentum Signal system.
"As the Momentum Signal is primarily a trend following system, it may indicate whipsaw signals in range bound markets. As such, all readers of this blog are requested to read the various pages describing the system and understand all the intricacies of trading the Momentum Signal and it's risk factors too. Please do write in your comments and suggestions."

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