So you Predicted the Parliament dissolution!!! You were right hah!!! Did you make money out of it!!! Yes or No???

Just like on the 26th, our politicians gave their beloved voters A SURPRISE again yesterday.  Just like the ASI moving up 60+ points on the 26th, we saw the market closing 48 points higher on Friday the 9th of November 2018. At this moment I hear a lot of folks saying that what they predicted is what happened. They say " Saw I told you so, blah, blah, blah ". If you are one of those, if you are also one of those who like short term profits in the stock market, tell me this, Just as you are telling me that what you told in politics happened, did you use that to make short term profits in the stock market FOR YOURSELF? Did you!!! If not, think to yourself, when these politicians are sucking you up and making billions, you are not even making 2 rupees in the market, by using your brains and time. What is the use of predicting what politics is doing, when you can't use that time to make money for yourself. Only charts will help you to do that. Practice to learn that, without wasting your time like a Naatami talking about politics, and confusing your self more than even a labourer. Chart will help you to trade, make money and be peaceful when all are talking of how to run the country.

The bullish close we saw will persist in the morning sessions on Monday the 12th due to the actions of the aforementioned politicians. How strong the momentum will be could test the resistance levels we see in the 15m chart as explained inside the image given below.
If you are a trader then you need to get into action and trade with your buy, sell and stop rules.
AEL, TKYO, COMB, JKH, SAMP, MGT, LLUB and TJL are the once which will show you more action. Hence better get busy with these counters.

If you want buy, sell and stop levels on the above stocks to trade on Monday, and you have an Atrad online connection, please WhatsApp me on 0773219506, today and tomorrow, I will be happy to share them with you.

ASI - Reversed around 5963 and 5912 points

ASI reversed after taking support at the zone I expected between 5963 and 5912, and it happened within 2 days. That is a strong signal for the traders. However selling above 6100 will be very strong. That will be absorbed only with very strong sentiments. We need to give another 2 days to see the strength of this renewed momentum. The behaviour we would see on Monday and Tuesday will certainly determine how far the rally is going to go. Till then 6100 to 6170 is very critical. AEL. TKYO, COMB, JKH,SAMP, MGT,LLUB and TJL will be the stocks that will keep the Traders busy. Therefore getting into short term positions on these stocks with strict stop loss rules will be a must for Traders.

 

ASI - 08.11.2018

ASI retraced as expected, moving down to the highlighted range. Let's keep watching how things unfold.

ASI - 07.11.2018

Retracement of the ASI broke down through my previous support levels, without any evidence of a reversal. The highlighted range in the chart below, between 5963 and 5912 is where the support needs to halt the fall. Heavy volumes and turnover persisted today as well. But that is not the case with traders, who will need to watch the turn with restrain.

ASI - Good Volumes, Heavy Weights GULP what the Foreigners Sell!!!

Some pundits say that the Foreigners are Selling both Stocks and Bonds due to Politics (This is only a part of the problem). These same PUNDITS 'said' that the Foreign selling is due to what Trump is doing to the US economy. They said this NOT SO LONG AGO. They said the same things to the USD too. If you are going to GULP what these pundits are saying, then there is something badly wrong with your brains. While you are Gulping what these pundits say, 'The Heavy Weights' are Gulping all the selling that is actually coming due to the Volatile Global Markets. Buying JKH is what they are doing while selling JKH is what the foreigners are doing. These Big Buyers are having a different plan for JKH, so they pump in Billions of rupees. Foreign Selling on JKH is not over. The Big Guns who are shooting all their cylinders into JKH sellers aren't done yet. They will absorb all what the Foreign Sellers are unloading. Pity that the Local Pension Funds did not absorb atleast a tiny part of the Foreign Selling. It would have been a wind fall for the Funds and their Contributers.

The stupendously large Turnovers aren't helping the Traders as much as the real fluctuations happening in the Market. If you want to see, think and feel the real fluctuations, start educating yourselves to read the charts. Atleast read articles as these and get informed.

Remember this!!! CHARTS CANNOT BE MANIPULATED. This you will understand only with enhanced Learning, Practice and Real Time experience. It is not easy to start believing in Charts. But you can.

As I expected, we see a SWING HIGH FORMATION in the ASI and the 7 stocks I mentioned in my last post. The image of the ASI you see elsewhere in this article shows you exactly what the formation is all about. It is a "Short Term Bearish" Signal. So you need to wait, until a trend change takes place. For the Short Term Traders this change must happen within a maximum of 2 days, or 3 days at worst. If there is no trend change within these 2 to 3 days, BE HEAVILY IN CASH.

Let the pundits talk their crap, Let us watch the Charts and make money. After all how many of your darling pundits ever helped you to earn an income with your hard earned money? Charts will help you and guide you.

Watch trend changing signals on : AEL. TKYO, COMB, JKH,SAMP, MGT and LLUB. Also TJL.

Tokyo Cement - Watchout for the Cup and Handle Break out

Watch out for Tokyo. Once a break out is established above 28/=, a re-test of the present high is expected. Break down below 26/50 will not be the best for a short term trade. Initiate a Buy at 28/= once the break out takes place, with a target at 30/60. Failure to trend in the short term will not be healthy, hence a stop at 26/50 is strongly advised. A plan to achieve this setup within a period of 2 weeks, would be a good idea if you are going in for a short term trade. If the target is not hit within this 2 week period you could close the trade.

ASI - Traders must see this

In my last post I expected the ASI to pull back to 5914 and 5858 points. It pulled back to 5920, then trended up to the expected highs between 6100 and 6200. This aggressive up move within a short period has its negative effects for sure. Fridays (2nd of November) behaviour confirmed this. Although it hit a high of 6168 points, closed below the Thursdays close. Long upper wick and a close below the days open, by all means is a bearish formation. This may end up with a swing high formation for which we have to see how the Market behave on Monday. Traders must be careful. Preferably should watch the morning session before getting into any position. I must also  say that the bullish trend coming from the positive sentiments in and around the market will certainly help the traders who will watch the pull backs well. Let me whole heartedly wish the traders good luck, as they had to face a major blow in their trading activities for a long period of time.

Short term Support Areas : 6066, 6057 and 6007.
Counters that must be watched for pull backs : AEL. TKYO, COMB, JKH,SAMP, MGT and LLUB.