Update on The Ultimate Momentum Signal - 28th May, 2010

  Is It a Relief Rally or the Real  One .. ?

Some Pointers :

• China expresses that it will remain as a long term investor in Europe, leading to a rally in all securities.
• Equities, sovereign bonds and commodities gain.
• The Euro currency too stages a bounce from the four year lows.
• More European countries plan or authorise more budget cuts.
• Optimism prevails in all the markets, at least for the day.

Stocks rallied all over the world on Thursday.  The European indices, the FTSE, CAC and the DAX gained 3.1, 3.4 and 3.1 % respectively. The US market indices were trading with gains of 2 to 2.9 % at the time of this post at 11.30 PM IST. The US VIX index has also fallen and was trading at 30.33.

Nifty Futures 

The Nifty futures took it's cues from the international markets and rallied strongly on the derivative settlement day on Thursday. However the June month futures were quoting at a discount of 19 points on the basis of the last traded prices. Meanwhile, the May month Nifty Futures closed at 5004, just above the 200 DMA at 4995. It is felt that some more steam is left in the rally. The momentum Signal system has indicated the end of the down trend. The closing levels required for the continuation of the down trend have decreased and are below the last traded prices.   

    Nifty Futures - Daily  Chart 

 

The Updated Momentum Signal Spreadsheet

The updated spreadsheet showing the Momentum Signal as on the close of  27th May 2010, is given below.

The Momentum Signal has indicated neutral value as on the close of trading on Thursday. 

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 28th 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.

The closing values required for the resumption of the down trend have decreased significantly and  are reasonably away from the last traded prices. The neutral area has also shrunk significantly thereby increasing the probability of indicating a buy signal as on the closing as on 28th May, 2010.

Cheers and Prosperous Investing and Trading !!!

 

To access the free online Position Limit Calculator click here.

To checkout the five year history of The Momentum Signal Spreadsheet click here.

© 2010 momentumsignal.blogspot.com All rights reserved.

Disclaimer: No research, information or content contained herein or in the accompanied spreadsheet shall be construed as advice and is offered for information purposes only. We shall not be responsible and disclaim any liability for any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered by the user or any third party as a result of or which may be attributable, directly or indirectly, to the use of or reliance on any information or service provided. All files/information is provided 'as is' with no warranty or guarantee as to its reliability or accuracy.

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 !!!

 

To access the free online Position Limit Calculator click here.

To checkout the five year history of The Momentum Signal Spreadsheet click here.

 

© 2010 momentumsignal.blogspot.com All rights reserved.

Disclaimer: No research, information or content contained herein or in the accompanied spreadsheet shall be construed as advice and is offered for information purposes only. We shall not be responsible and disclaim any liability for any loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered by the user or any third party as a result of or which may be attributable, directly or indirectly, to the use of or reliance on any information or service provided. All files/information is provided 'as is' with no warranty or guarantee as to its reliability or accuracy.