STT and LTT

If this note was a Hollywood movie, I could have done a sequel to yesterday's note and titled it "An Irritating day at the Markets Part II". The only problem is that I am not sure that Part I was a big enough hit to justify a sequel!

Talking of sequels, here are a few sequels that should never have been made. 1] Matrix Reloaded 2] Matrix Revolutions 3] Exorcist II 4] Omen II 5] Basic Instinct II....The list is pretty long and I could go on but then this is not the forum for such a discussion. So, with a heavy heart, I shift my focus to the markets.

I am still short the Nifty. I cannot understand in how many different ways can I say the same thing since essentially I have been short for the last couple of weeks. This system that I have been talking is my Long Term Trade system (LTT). It is extremely tough to write a daily note using LTT system since a trade can continue for weeks. I will therefore introduce my Short Term Trade (STT)system to you too. The trades of this system last for 3-4 days on an average.

My Short Term Trade (STT) system will go long if Nifty Jun Futures crosses 5610.10. The LTT system is currently short. I will cut my short positions and go long on the LTT system if Nifty futures crosses 5610.10. No, it is not a mistake. STT and LTT are coincidentally getting triggered at the same levels this time.

After, two irritating days, I hoped for a day of action. But Singapore Nifty futures are already 40 points down and if Nifty futures gap down the same amount, I am not sure how much more it can move during the day. We could then be faced with yet another irritating day.