The Waiting

I had sold Nifty at 5620 on 1st July i.e last Friday as per my STT. The stop and reverse level for that trade was 5703 which is less than 2% away. For the last 3 days the Nifty has remained above 5620 but has not hit my stops. So no trades were required to be done. The good thing also is none were. This is important because it means that I did not do some silly counter-productive intraday trades just to keep me amused. I have spent my time reading books on trading. I also trade commodities for myself and thus spend a little time doing that. Two hours are spent travelling back and forth to work and another hour is spend writing this note in the evening. In fact I think, these daily notes are the most productive thing that I have done in the last 3 days.

There is nothing new today that should make the market behave any differently. So I resign myself to another day of low activity. There are a couple of worrying signs in the international markets though. For one, precious metals have staged a rally. Secondly, Euro is falling despite the expectations of a rate hike. So if the rate hike does not happen it could fall even more. All this points to a risk off trade building up internationally. The question is when will it hit Indian shores and the Nifty?                            

Current Position STT Short and LTT long 

STT: Cut Short and Go Long > 5703

LTT: Cut Long and Go Short < 5561