google.com, pub-7808368332557457, DIRECT, f08c47fec0942fa0 The Ultimate Momentum Signal: Update on The Ultimate Momentum Signal - 13th May, 2010

Wednesday, May 12, 2010

Update on The Ultimate Momentum Signal - 13th May, 2010

Why Should Anyone Fight With The Sovereign Money ... ! 


Why should anyone fight with the sovereign money ?  Yes, the international investors faced this question when markets opened on Wednesday. Therefore, after the Tuesday's doubts, there were doubts about the doubts .. !  Hence the recovery on Wednesday .. !

The European markets closed positively on Wednesday. The FTSE nad CAC closed with gains of a percent each whereas the German DAX gained 2.4 %. The FTSE and CAC were trading near their five day highs. The DAX had recovered most of it's losses and closed near it's 11 day high. The DAX also closed above the major DMAs.

The US markets were trading just below their 50 DMAs with gains of 1 to 1.5 % at the time  ( 11 PM, IST ) of this post. The CBOE VIX index was  quoting at 25.68 which is higher than it's 200 DMA at  22.27.

Nifty Futures

As anticipated in the last post, the Nifty futures opened with positive bias, and traded towards  the minor resistance at 5162. As it could not get much higher and due to a lower opening of the European markets, the futures traded lower. It broke the Tuesday's low of 5122, which also coincided with  the 100 DMA and recorded a  low of 5088 for the day. However the futures did not break the low  of 5080 recorded on Monday. As the trading progressed the futures traded higher in step with the European markets and recorded the day's high at 5174. The futures closed at 5150 for the day. The futures a may test the resistance zone at the 5210 - 5215 levels ( 50 and 100 DMAs ) on Thursday. This resistance zone also coincides with the Monday's high of 5208. ( Please see the chart below ).

 Nifty Futures - Daily Chart  


The Updated Momentum Signal Spreadsheet

The updated spreadsheet showing the Momentum Signal as on the close of  12th May 2010, is given below.


  Momentum Signal has closed in the neutral territory.


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 13th 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.

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

The closing values required for the resumption of an uptrend have decreased significantly  and are just above the last trading day's highs. The closing values corresponding to the resumption of the downtrend have also fallen.

Please do write in your suggestions and comments about this blog.

Cheers and Prosperous Investing and Trading!!!   
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