What I had feared that really was the case. After last weeks article the number of calls that I received was overwhelming. My readers had actually taken the positions on the wrong side and were really curious to know now what?? And believe me the positions were really very big to hold and not worth the risk. People have been acting on their instincts which I feel is really dangerous in this market, because the way this market is moving and the way the moves are coming in I request you to please trade with caution and please trade in small quantities. Do not be in a hurry to recover your losses that you made in the past trading the equity markets. The markets are going to be volatile till the end of august till the rain spells have not ended. So please do not make the mistake of holding huge positions quantity wise as you will not be able to catch the reversals easily with the speed that is needed in the market.
The rains have been lashing Gujarat , Rajasthan, Madhya Pradesh and Uttar Pradesh. The way the satellite images are showing the cloud formations it is quite obvious that they won’t be stopping soon. The rains are going to be good and there is no need to worry. As I had said before do not make your conclusions that the rains are less simply by seeing the news channels. They are always on the lookout to give out hot news without even checking the authenticity of the matter. I had also said till the end of august you will be in the right position to conclude if the rains were satisfactory or no. I don’t think you will be having any doubts now.
This week I would again make an exercise the way I had done previously. I know many of my reader have been caught on the wrong side of the market and that’s why I decided to help them out by setting in stop losses for most of the commodities irrespective of which side you have taken the position. I am going to mention only the commodities that I feel most of the people are stuck in and they are their hot favorites.
If you wish to follow these figures make sure that you follow them on closing basis. If the prices close above or below these figures exit your positions.
Crude – stop loss for long position 3105 and stop loss for short position 3325.
Gold – stop loss for long position 13960 and stop loss for short position 16375
Silver- stop loss for long position 20001 and stop loss for short position 24735
Zinc- stop loss for long position 72.35 and stop loss for short position 83.75
Copper- stop loss for long position 241.25 and stop loss for short position 272.65
Nickel – stop loss for long position 722.50 and stop loss for short position 805.75
Natural gas- stop loss for long position 171.65 and stop loss for short position 215.65
I had very few callers who had any position in the agri commodities. That’s the reason why I am not giving any calculations for them. What I have noticed that most of the traders are interested in trading metals and energies as they give quick returns. But please keep in mind that they too follow fundamentals and they are more dependant on fundamentals that are based on international market and not Indian markets. With the end of the solar eclipse lots of commodities have already shown their reversals. This week the prices will show the effects of eclipse. I wish you a happy trading week and a profitable week.
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