US Markets Today: Central Banks pour money, futures rally

Nov 21, 2014, (9:14AM EST)

The way central banks are cutting their lending rates all over the world; it seems to be the best time to start a business, any business at all because only the business class is benefiting from all this free liquidity in global markets.

That’s’ why I too have been busy finding a new office for my nascent business :)  Maybe I should immediately file for bankruptcy and then request the ECB/ The Fed/ Bank of China/ Bank of Japan or any other central bank to loan me a few trillions from their bailout money :)

That is a good dream to dream, but right now, in stock markets, all traders should forget about any correction and ride on the coat tails of upward running markets. You all know by now that the Chinese central bank  has made a surprise cut in its lending rates and the ECB president Draghi has talked about more easing in the central banks’ monetary policy. This double whammy has made European markets and U.S. stock futures go crazy with high gains.

U.S. stock futures are signaling another big gap up opening ahead. So, these markets will continue with their trading pattern of “buy at dips” and now, rest of the markets have also joined these markets.

So, do as markets do and if U.S. markets continue to rally even after a gap up opening, then please join the rally and enjoy some positive trading.

I’m saying “if” since any big opening move must be watched for confirmation of the trend, like yesterday we saw, where U.S. markets turned high after a gap down opening. Also, there is one political worrying signal for markets, that of confrontation over immigration bill between President Obama and the Republican Party.

So let markets mark their first high and low in the initial hour of trading, then watch which levels markets breach and trade in that direction.

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

See you later.

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Indian Markets Today: Range bound, weaker

21 Nov, 2014 (7:58AM IST)

I had been too busy to look at rupee, so it sneaked behind my back and started tumbling against dollar in recent sessions :)

Yesterday  it recovered and supported Indian indexes too.

Nifty has been continuous showing weaker trend, although it is still trading in a range between 8,460-8,350. Selling keeps coming in at higher levels, just as we saw at yesterday’s opening, and buyers jump in at 8,350 mark, effective “sandwiching” Nifty between these two levels.

For Nifty, the immediate trading range will be yesterday’s high and low levels. If the index falls below yesterday’s low levels, the we can see more losses in the index.

Indian markets are still following global cues more than anything else. So keep an eye on those levels and trade accordingly.

Good luck, have a great session in markets today!

See you later.

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World Markets Today: Volatile, Range Bound

21 Nov, 2014 (7:54AM IST)

Nov 20, 2014, (9:24pm EST)

Like a Phoenix ( or like me :) ), U.S. markets once again rose from the “ashes” and closed high after opening low. That is classic pattern of a range bound market, although with a more positive support than negative resistance. This means, U.S. markets are still showing “buy at low” trading.

Range bound markets show another trading pattern, called “sell at high” when resistance levels become dominant, like we are seeing in Indian markets.

In between are European markets, uncertain but clinging to their support levels- at least until now.

DAX has twice recovered from low levels to close positive in last two successive sessions. That gives the index some support.

Major Asian markets had started out negative, and still trading with high volatility. SGX nifty is slightly negative, but expected to remain in its weekly range.

Expect a highly volatile session in global markets. All markets are range bound so an early drop gives chances to gains in second half and vice versa.

So, watch your local index carefully as local cues seem to b more dominant today, and trade accordingly.

Good luck, enjoy the last session of the week.

See you later.

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US Markets Today: A breach in range?

Nov 20, 2014, (9:12AM EST)

Although I had not had time to look at global markets since Asian markets’ early session, it is very interesting to see highly negative U.S. stock futures.

European markets are also trading negative but my focus will be on lower levels of Dow Jones, and to see, if this index breaches the support levels of its current range?

Although that major support sis quite far away, at 17,500 but a lower session even after a gap down opening in U.S. markets can bring that level very close.

The catch lies in “ a lower session after gap down opening.” We have seen many negative opening in Dow Jones recently but every time this index turned around and climbed back to close in the green.

Are we going to see that pattern again? Or, will Dow Jones fall further after a highly negative opening?

I don’t know. If you do, then please let me know too :)

I feel that today, we might see a continuation of lower trend in U.S. markets. Please note, this is what I’m “feeling” and it’s not necessary that markets will oblige me. If they do, I’ll come back and brag about my crystal ball,  if U.S. markets climb back from day’s low, blame it on speculators :)

Good luck, have fun, enjoy another session in U.S. markets today.

See you later.

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Indian Markets today: Start of a correction?

20 Nov, 2014 (7:45AM IST)

Like a hawk, I sit far away and can see patterns of a decay in markets :)

I am very happy to report that Bank Nifty, Nifty and Sensex are signaling that “decay” on stock technical charts. In short, technical indicators have turned negative for all these indexes.

Nifty, as well as broader markets, traded negative yesterday, just as I had anticipated. Nifty made a big negative candlestick on charts, easily breaking various support levels. Today, as global cues are also turning negative, we might see this negative trend picking more points in Nifty.

For Nifty, yesterday’ low levels will provide first support today. 8,360 -8,324 are immediate supports today for this index. Indian markets will continue to follow global cues so keep an eye on U.S. stock futures for any sudden trend reversal.

Keep an eye on 8,300, the major support of this index.  If, by any chance, Nifty tumbles below this level, then next support will arrive only at 8000.

If global cues don’t improve, then I guess bears will continue their yesterday’s party in Indian markets today :)

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

See you later.

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World Markets Today: Losing steam at current levels

, 20 Nov, 2014 (7:41AM IST)

Nov 19, 2014, (9:11pm EST)

That sounds interesting, eh? I mean, “losing steam at current levels” :)

The central bank support has become uncertain for liquidity junkies in global markets. The Fed is still talking about rate hike and in Japan, new elections have been declared which creates a political uncertainty. That is a big dampener or QE junkie speculators who have been recently pushing markets up on BoJ’s ambitious easy money programs.

U.S. markets survived yesterday’s session but early in Asia markets, U.S. stock futures, European stock futures, Asian markets and SGC Nifty have turned negative after bad economic data from Chinese economy.

Right now, everything is in red in equity markets, which, of course looks “golden” to my bearish eyes :)

At the time of writing, all indicators are pointing to a negative session in global markets. High volatility and range bound pattern will mark this session like all previous session in this month. In short, day traders can have profitable trades if they wait for right opportunity and watch markets like a hawk to exit those trades.

Last week’s low levels are still marking the range in global markets. Till those levels are breached, markets will be remain range bound.

Good luck, have fun, have another great session in stock markets today!

See you later.

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US Markets Today: Waiting for the Fed’s meeting minutes

Nov 19, 2014, (9:17AM EST)

12 seconds and from Asian markets we have reached at the gates of  U.S. markets

At least, that’s how it seems to me :)

A highly volatile session in global markets, where even European markets are trading in separate ways. DAX is holding on to its previous gains, albeit with even lower volumes and FTSE100 is trading in the negative.

U.S. stock futures are also slightly negative and everyone is holding their breath, waiting for 2 PM EST when the Fed’s last meeting’s minutes will be released.

So, till then, traders can expect a highly volatile and range bound session in U.S. markets and after that, we might see a bigger trend in these markets. All will depend on what the FOMC members discussed about the Fed’s policy going forward.
If the meeting minutes show any delay about hiking interest rates by the Fed, then markets will be jubilant. If, by any chance, there are more talks about a rate hike then markets might see some correction.

Expect high volatility at that time as high frequency speculators will interpret Fed’s meeting minutes in their own way and trade accordingly.

After that, we might see a more stable trading pattern in U.S. markets.

Good luck, enjoy the session and have a great day in U.S. markets today!

See you later.

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Indian Markets Today: Resistance ahead?

19 Nov, 2014 (8:56AM IST)

Here comes Nifty, to fry my brain cells once again with unexpected trends :)

Going by pure technical indications, Nifty made a negative candlestick at the top in its last session, so today, we might see a continuation of that session, that of a higher opening lower closing.

Nifty is range bound between 8,450-8300 and yesterday, we saw a stiff resistance at those higher levels again. Today, we might see a similar resistance in Nifty once it reaches the day’s high levels. 8,460-8400 is the immediate range for this index.

Overall, Nifty is showing support at lower levels so don’t expect a bigger negative trend in this index till global cues start turning negative.

As I have written previously, till Nifty closes above 8,460, the range will remain in place and you can use “sell at high and buy at low” trading strategies in this index for day trading.

Good luck, have fun, have a great session in stock markets today!

See you later.

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World Markets Today: Still Volatile, Range Bound

19 Nov, 2014 (8:53AM IST)

Nov 18, 2014, (10:23pm EST)

The opening bells have been ringing in Asia since a few hours now and looks like we are again going to have a small range bound and volatile session in global markets.

That means, traders have another hard-working session ahead of them if they want to make money :)

I have already been working hard on company reports since U.S. markets closed a few hours ago, so I guess I have already scored on the part of “hard work”, now I only need to score on “making money” part :)

U.S. markets are continuing with their small gains every day, inching up step by step, supported by big money from various central banks.

European markets also joined this rally yesterday after the ECB president once again hinted at the central bank’s bond buying or QE program. DAX , which has been making lower highs, in its range, or hinting at weakness, staged a positive breakout in its last session. But, this rally in DAX was not supported by volumes so I will keep an eye on confirmation of a positive trend in this trend.

Asian markets are mostly trading negative. U.S. stock futures are trading slightly negative, but this trend usually changes before the opening bell so need for bears to be happy about this red ting in markets.

European stock futures and SGX Nifty are trading positive, signaling a gap up opening, even if a small gap up, in European and Indian markets.

Please remember, global markets are filled to the brim with liquidity from various central banks. Just when the Federal Reserve started pulling shut its purse strings, the Bank of Japan and the ECB opened their coffers. Maybe it was all pre-planned between these big players, that one will close its doors and other will open theirs for continuous money-printing and pouring in markets.

The basic thing is, do NOT expect markets to correct till some major negative news hits global markets. There is money so buying pressure and speculative trading will continue in global markets.

So keep an eye on support levels of your local index, buying at support has  been working in all markets till now in this month and today also, that trading strategy could be beneficial for day traders.

Good luck, enjoy the day and changed weather in markets :)

See you later.

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US Markets Today: Volatile at the top

Nov 18, 2014, (9:10 AM EST)

Don’t know about you but I’m thoroughly enjoying the “separation” of U.S. and European markets :)

It increases volatility in markets and gives day traders more trading opportunity.

So, here we are, celebrating a “tantalizing Tuesday” where European markets are rallying, yet remaining at a lower level compared to U.S. markets and still confined within their current range.

U.S. stock futures are refusing to join this “hope for more QE” rally in European markets, and have been trading negative most of the time in this session.

That means, we can look forward to another highly volatile, and most probably a range bound session in U.S. markets today. Nasdaq is more prone to losses, as mentioned before. Overall, last week’s low levels are still providing a strong support to U.S. markets and as long as that support is in place, you can expect U.S. markets to keep bouncing from intraday low levels.

So, keep an eye on resistance levels to seek chances of “selling at high” and on support levels to find “buy at low” trades.

Range bound markets give multiple trading opportunities, but a profitable trade depends on right timing of trade entry and profit booking. For that, you’ll have o watch and observe markets keenly, and do as markets do.

Good luck and enjoy another “entertaining” session in U.S. markets today :)

I certainly will :)

See you later.

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