You must read previous articles and watch the given chart carefully
to understand this article completely.
For 21 August 2014: -
On 20 August 2014, FII Bought INR 251.36 crs and DII Sold INR
481.37 crs
I have already given a figure of 7920 for exit my longs. I am
yet to load shorts in the market. I have strongly advised traders yesterday for
avoiding buying. Well, why only at 7920? This must be big question in traders
mind. Have a look on given snap shot. It is showing how Wolfe wave works. I am
just not giving marking as 1, 2, 3, 4 and 5 as I keep those for Elliott wave
but many technicians do so.
It is the extension of 1-3-5 or a-c-e as supply line. Bulls get
tired on supply line and they may just fail to give a break on higher side or
push on higher side. It will just cross and then dip. I am expecting that break
to be tested today and the levels will be 7920.
Wolfe wave works well as it is the reaction of market equilibrium
mode. My only concern is that this pattern is rarely seen on all-time high. It is
generally emerges after at least one market top. Still, traders need to be
flexible. I am giving over all view that top may be near for almost every
global indices. Although it may be taken first has pullback only. No harm, I am
also taking in same way.
S&P 500 (US) added a few more set of Tom Demark ‘sell’
signal near 1985-1990 ranges.
For today’s session, we will see a higher opening and then I will
plan to test for short based on Wolfe wave formation on Indian market. I favour
to add short on S&P 500 now based on Tom Demark sell signal.
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Strategy for Nifty August
future – Nifty August
Future should open higher near 7900 levels. I am now planning to test shorts
now so I would definitely like to see higher opening in bears favour. I must
say that I have not yet added shorts. It would be great if I get those in the
zone of 7920. Take 7940 as rock hard resistance and market will be ready for a
pullback now which can convert later in to selling. As of now, add soft
shorting.
S&P 500 (USA) – It is still heading towards 1990 as
said yesterday. It hit a high at 1888+ and closed on stronger note. I am
already saying that we may have on pullback or mini pullback in this zone now. Today
will be eleventh day form the low of 1904. We have already seen 84 points of
rise in just 10 trading sessions. This is heavily overbought now. I am still
not saying for shorting but avoid buying for sure. I still believe for a move
above 2000 marks but first a pullback must come now.
