US Markets Today : Volatile, Range bound Session

Aug 29, 2014, 9:21AM EDT

I’m in a very foul mood today !!! Grrrrrrrrr!!

I am a workaholic and I hate long weekends! And this weekend is going to be the longest!  Starting from Indian stock markets today and stretching till U.S. markets on Monday! Who made such crazy, compulsory holiday rules?!  I hereby declare them expelled from the universe of stock markets. (now, that feels a bit better :) )

Thankfully, European markets have started declining on some disappointing reports from the U.S. economy, and hopefully, we can look forward to a bigger trading range in U.S. markets today. Personal Spending and Personal Income numbers have come lower than expected from the U.S. economy and that brought down U.S. stock futures from their earlier highs, though futures are still trading positive.

Going by yesterday’s trading pattern in U.S. markets, I don’t expect any big loss in these markets today. in their last session, after a big gap down opening, and Dow Jones falling nearly -100 points; U.S. markets recovered from those low levels and continued to recover and closed with a green candlestick on charts, even though numbers were showing a negative session in markets. That meant that markets found good buying pressure at low levels and buyers dominated the session.

Today also, we might see U.S. indexes roam around in their rang of last two session. All indexes will face resistance at high levels of yesterday. For S&P 500, that is 1999.10, and for Dow Jones 17,120 will be a big challenge to cross. In case markets see profit booking, last session’s low level might provide a strong support. Sell at high might be a better trading idea, can’t say the same about “buy at low” trading strategy. Ukraine problem is very much alive and trader would not want to leave money on the table before a longer weekend.

Get ready for an action packed session in U.S. markets and enjoy the trading opportunities!

See you later.

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Indian Markets Today: Closed for Ganesh Festival

 29 Aug, 2014

Indian stock markets are closed for Ganesh Festival today. We wish our Indian readers a very joyous day !

ganeshGanesh is worshipped to remove obstacles and we wish that he will remove all obstacles in profit making- path of all small traders :)

He is also said to accompany Goddess Lakshmi, the goddess of money. I  hope that both Lakshmi and Ganesh bring you prosperity, lots of money, peace, joy, and happiness !

Enjoy your holiday, but keep an eye on stock markets in rest of the world :)

More information about world markets later.

See you then.

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US Markets Today: Negative Session on Ukraine tensions

Aug 28, 2014, ( 9:21AM EDT)

The Ukraine- Russia peace talk have failed and a few hours ago, the Ukrainian President was reported as saying “Russia has invaded Ukraine”.

European markets opened with a gap down and then continued to drop on this report, U.S. stock future declined, the Dollar index, Gold futures and bond markets zoomed up as investors took money out of equities and parked their lot in safer instruments.

A long weekend waits for U.S. markets and both traders and investors are expected to take their money off the table before that.

Going by the current situation, we can safely assume that U.S. markets will trade in the negative and in a bigger range.

U.S. stock indexes were anyway trading at uncomfortably high levels and were looking for an excuse for profit booking and today’s session just might provide that opportunity.

For Dow Jones, 17,076 and then 17,000 are major support levels. DAX has breached its major support levels today, will Dow Jones do the same ? I hope so :)

So keep your fingers crossed and wait after markets stabilize after a gap up opening in U.S. indexes. After that, if indexes breach their day’s low levels again, then bears will dominate U.S. markets today :)

Good luck and enjoy the opportunity of a bigger trading range in U.S. markets today!

See you later.

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Indian Markets Today: Volatile on F&O expiration

28 Aug, 2014 (9:12AM IST)

Nothing much to write about Indian markets today as F&O expiration sessions are not bound by normal trading pattern (that’s half a lie, I’m late so can’t write a bigger update:) )

Nifty had traded in a similar manner in last two sessions; opened slightly higher, then turned negative and dropped to support levels, and then bounced back to close near 7,900 level.

It was just as I had been writing about these markets, that up side is limited and so is downside as Nifty will try to hang on to the 7,900 level.

Today is Futures & Options series expiration and markets will remain closed tomorrow. So, a highly volatile session will take place and Nifty might continue to trade between 7,950- 7,900 levels.

Good luck, trade carefully and enjoy the day in stock markets today!

See you later.

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World Markets Today: Range bound, Volatile Session

 28 Aug, 2014 ( 9:10AM IST)

Aug 27, 2014, (11:40pm EDT)

Except for equity traders in U.S., rest of the world is going to see highly volatile trading session today, although the trading range might remain narrow. U.S. equity markets have turned quite boring as volumes has disappeared because of two high levels and coming Labor Day holiday on Monday. Bored U.S. traders can still have fun in forex markets which is seeing high activity these days.

Asia is churning up and down, giving good chances to both bearish and bullish traders. Main stock indexes in Japan and Australia are trading negative, but other major Asian markets are trading with green numbers. SGX Nifty is showing slight but uncertain gains.

The ECB meeting next week will keep global markets range bound, at least in these last two sessions of this week.

Euro is gaining from bottom level, the Dollar index is trading negative, perhaps due to profit booking. I look forward to shorting this currency today :)

Expect a volatile but small range bound session in world markets today. Local cues will create intra day patterns as global cues have become very subdued. Range bound markets are best traded with the help of support and resistance levels, so use those levels and trade for smaller profits.

Good luck, enjoy the session, have a great day in stock markets today!

See you later.

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US Markets Today: Profit Booking Session Ahead?

Aug 27, 2014, (9:12AM EDT)

Can you hear it?

I mean, snoring of DAX :)

What an utterly boring day for German traders ! (although euro traders in currency markets were having wonderful trading trends today ).

European markets have been mostly negative, and stayed confined in very small range- just as I had written earlier.

U.S. stock futures have just turned negative, indicating a flat or negative opening ahead. Please remember, global markets are range bound and U.S. markets are also confined in their range of this week. As I have been writing this week, buyers have disappeared and sellers are refusing to enter the trading ring. That leaves markets nowhere to go and some traders might go in for profit booking before a longer weekend arrives.

Selling at high levels still looks a better choice for day trading, with strict stop losses as markets are trading rumors nowadays and any rumor/speculations/ assumption might bring in another short lived jump in markets.

U.S. markets are expected to remain range bound so watch out for intra day resistance and support levels and trade accordingly. Selling at high might work, can’t say the same about buying at low. Don’t blame me if markets turn this strategy upside down :)

So, keep your eyes open, wait for the right trade entry point and try to book profit near major support- resistance levels without being much greedy. This is the week of small trading range in various markets.

Good luck, enjoy the session, have a great day in stock markets today!

See you later.

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Indian Markets Today: Nifty turns range bound, choppy

27 Aug, 2014 (9:00AM IST)

Day traders in Indian stock markets had excellent intra-day trading opportunity in Nifty yesterday, in both directions. At least for those who were careful enough to time their trades on support and resistance levels.

Nifty’s current range has become 7,950- 7,850. Yesterday, the index gave good opportunity to sell at high (7,914) and buy at low ( 7,865).

Tomorrow happens to be the F&O expiration session and markets will be closed on Friday for a long weekend. That makes today’s session even more volatile.

SGX Nifty is showing inherent weakness as yesterday, there was a big gap down drop during the second half of the session in this index. That showed some big position holder dumped huge lot of shares at cheap price. Such big, sudden movements are indicative of nervousness or running away from long positions.

Even though SGX Nifty is trading quite high today, it will trade within this week’s range of high and low and Nifty is expected to do the same.

So watch the resistance levels in the first half of today’s session, and watch rupee’s trading pattern. Indian markets are trading as per USD/INR currency pair trades (watch live charts of USD/INR here).

If rupee gains then Indian markets will also gain- but only up to certain levels. Global cues will be more dominating than anything else. European markets might decide the trading pattern in second half of today’s session.

Trade carefully, Good luck.

See you later!

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World Markets Today: Smaller range, Volatile session

27 Aug, 2014 (8:59AM IST)

Aug 26, 2014, (11:30pm EDT)

Be careful, global markets are going to be quite unpredictable and volatile in today’s session (nothing new, you might say :)).

In their previous session, U.S. markets had come down drastically from their highest levels, just as I had anticipated (selling pressure at higher levels).

That’s why Asian markets are trading almost on the verge of red line as buyers have disappeared form markets. Sellers are still waiting at the side lines for the ECB meeting next week. That means the trading range in markets will continue to shrink and volatility will continue to increase. Sell at resistance at buy at support – the classic trading strategy of range bound markets might become useful in such conditions and traders will need a lot of patience to wait for the right trade entry point. A quick exit with smaller profits should be the second part of your strategy.

European markets will be even more volatile as some important economic reports will arrive from Germany, France and Norway.  Forex markets will react strongly to these reports and so will equity indexes. It will be a good time for quick spread trading in forex. Can’t say the same about equities as these are dancing to the market speculators’ tune.

Global cues are dominating and U.S. markets are guiding other markets. So, keep an eye on U.S. stock futures and your local index’s pivot levels for intraday trading. As I said, you would need a lot of patience and good measure of luck to find proper entry and exit points in these markets :)

Good luck, enjoy another action-packed session in stock markets today!

See you later.

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US Markets Today: Range Bound, Volatile Session

Aug 26, 2014, (9:25AM EDT)

The French government has resigned and their stock markets are rallying. What do you call this? Bubble ? Speculators’ market?

How do you trade a market that rallies on bad economic news and drops on positive news?

I don’t know. If you do, then please teach me as well :)

U.S. stock futures and European markets are back in the green after a few negative numbers from the U.S. economy. All these rallies are spurred by hopes of an asset purchasing program by the ECB. It does not matter that the ECB president Mario Draghi keeps promising “to do whatever is needed” and actually does nothing ! Markets rally only on his words! I call it the “Draghi drug” for speculators :)

This “drugged rally” is not going to subside till next Thursday when the ECB will hold its monthly meeting and declare its intention about improving a slugging euro zone economy.

And if you are wondering why I’m writing about European markets in a post intended for U.S. markets, the reason is, that U.S. markets are also following the same path; rallying on the ECB QE hope.

So today, as U.S. markets will receive many more reports through the session, expect a highly volatile trading pattern where bad numbers will make markets jump up and good numbers will stall any movement. U.S. indexes are expected to trade within the high and low levels of their last session. S&P 500 is at historic levels and buyers have disappeared so higher levels might present an opportunity of selling short.

Good luck and have a great day in stock markets today!

See you later.

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Indian Markets Today: Local, Global cues put pressure on Nifty

26 Aug, 2014 (9:10AM IST)

Indian markets slipped down yesterday after the Supreme Court declared all cola block deals illegal. Metal and power companies crashed nearly 15% after the news, dragging Nifty down with them.

On top of that, state by-election results came as a shock for the new government which lost to its rival parties so soon after winning in the center. This political development might prove to be a bigger drag on Indian equities as FIIs might start having second thoughts about the central government’s powers.

Global cues are also signaling profit booking in stock markets. Then there is F&O expiration in Indian markets day after tomorrow and markets will be closed on Friday due to Ganesh festival

All these point to a weakness in trend and we might see a lower intra day trend in Indian equity indexes. I might be wrong because Indian markets are know to trade whimsically and sometime rally even if things start turning negative :)

So, trade carefully, and watch the pivot levels for intra day trading today. Markets might pick up a more stable trend once European markets start trading. Nifty will try to keep above 7,900 till the F&O expiration so remain alter near support levels if markets go down and you sell short.

Enjoy the session, have a great day in stock markets today!

See you later.

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