google.com, pub-7808368332557457, DIRECT, f08c47fec0942fa0 The Ultimate Momentum Signal: Update on The Ultimate Momentum Signal - Update for 19 - 03 - 2010

Thursday, March 18, 2010

Update on The Ultimate Momentum Signal - Update for 19 - 03 - 2010

The Breakout - Day 14

 Another Day of Consolidation.....!
The Nifty futures opened today at 5144 and traded mostly inside the yesterday's range.  It closed at 5255 forming an inside day. Today, the Australian, Indian and Taiwanese markets closed  in  the positive territory, but the Japanese and Hongkong markets closed with negative bias. The European markets have also closed flat or with negative bias. At the time of writing the post, the US markets are also trading flat. 

                     Nifty Futures - Daily Chart

As the technical position of the market has not changed today, the stop loss for long positions remains at 5160. Meanwhile the S&P CNX Nifty index valuations have reached the upper ranges of normal bull markets and therefore traders are advised to adopt a cautious mode. Please also read the
next post for more information on the index valuations.

The Updated Momentum Signal Spreadsheet 

The updated spreadsheet showing the Momentum Signal as on the close of   18th March 2010, is given below.
You can click on the table to enlarge. For more info on the above table,  please click here.

The Momentum Signal has returned the maximum value of +100 for the fourteenth consecutive day indicating the continuation of the uptrend.

 Projected Momentum Signal Close Values

The projected levels of closing values required for momentum shift / neutrality / continuation as on the close  of trading  on 19th March 2010 are given in the table below. The table also include the projected closing values of BSE Sensex required for momentum shift / neutrality / continuation.

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

Even though the trading system rules recommends a trailing stop loss of 2.5 % from the maximum favorable excursion, it stands reduced to 2.1 % from day before yesterday, due to the long nature of the uptrend and the significant non - participation by some of the Nifty constituents in the current rally.  The  new stop loss point is at 5160.



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