Trade, Live and Thrive: 06/01/13

Saturday, June 1, 2013

S&P 500 - Triple Screen 'Technical Analysis' - Week: 27 May to 31 May: 2013 - Bears smell honey..

S&P 500 - End of Month Chart (EOM) - Channel analyzing Data from mid 2009, onward - as on 31 May'13

S&P 500 - End of Week Chart (EOW) - Channel analyzing Data from Aug' 2011 onward - as on 31 May'13

S&P 500 - End of Day Chart (EOD) - Channel analyzing Data from Nov'2012, onward - as on 31 May'13

Learning from the Past Week: (click here for the post)

Bears manage two red weeks in a row #M1.

Bears capture the short term screen - Bulls keep the other screens.

5 EMA slides below the 13 SMA #D1.

RSI and its MA slip below oversold #W2.

The 76.4% Fibonacci Retrace - remains at the last consolidation cluster #M1.

Month Channel's Top almost reached by the index #M1 & #D1.

Three inside down seen on the Week Charts #3.

Bulls sent back by our identified major resistance - Month Channel Top..

The Ellipses marked #M1, #W1 and #D1 indicate the hot spots on the long, medium and short term charts respectively.

As one can see - we are zooming into the action starting #M1 through #W1 and get up close in #D1.

Looking forward into the next Week:

Day channel's, bottom green line is support and the latest 'All Time High' the resistance for the Bulls #D1 & #M1.

Bulls would want to clear off the Triple Top Threat conclusively ...

Getting the price, above the 5 EMA on the EOW #3, critical for bulls.

Breaking the Day Channel's Bottom Green Line #D1 is what the Bears would want to do next...

The 76.4% Fibonacci Retrace - remaining around the last consolidation cluster #M1, is good for Bears.
Three inside down on the Weekly chart #3 - boon for Bears - revise it here, here or elsewhere.

Bulls look at resuming the up move - Bears at pouncing on the 3 inside down #W1.

CNX Nifty 50 - Triple Screen 'Technical Analysis' - Week: 27 May to 31 May: 2013 - Bulls see stars..

Nifty 50 - End of Month (EOM) Chart - Channel analyzing Data from 2008 onward - as on 31 May'13

Nifty 50 - End of Week (EOW) Chart - Channel analyzing Data from Mid 2011 onward - as on 31 May'13

Nifty 50 - End of Day (EOD) Chart - Channel analyzing Data from Nov' 2012, onward - as on 31 May'13

Learning from the Past Week: (click here for the post)

Bulls avert a three outside down #3.

Bearish deflection of the 5 EMA and 13 SMA, on the EOD #5.

Position of the STS on the EOW, gave the Bulls support #4.

The Bears take the short term screen while Bulls remain above the 5 EMA on the Month chart #1.

MACD and its histogram tick down #6.

The short fuse indicator ends May in the oversold #2.

May month gifts Bears a Shooting star candlestick #1.

Bulls lose the short term screen #5.

Looking Forward into the next Week:

Bullish re-cross of the 5 EMA and 13 SMA to be watched for #5.

Bulls look to stay above the 76.4% Fibonacci retrace of the Jan'12 low to All time high #5.

50 SMA and 200 SMA, convergence towards a death cross to be watched #5.

Red EOW channel Top, next target for Bulls #3..

Volume divergence a ray of hope for bears #6.

Shooting Star Candle stick can be followed up for study here, here or elsewhere.

Bulls look for a return of the up move - Bears see hope in a Shooting Star #1.

The Dow Jones - Ichimoku Study - Week: 27 May to 31 May: 2013 - Bears dig in..

.....Regulars can skip below and go straight to the chart......

Introduction can be read at this link (click).

Quick Reference :

Chikou Span - pink line,

Kijun Sen - blue line,

Senkou Span A - black line,

Senkou Span B - grey line,

Kumo - grey shaded area,

Tenkan Sen - red line.

Previous Signals seen on DJI 30 - Week Chart (EOW) marked on chart as per notes below

The Kumo Breakout: Strong Bullish Signal (B)

The Flat Kumo: Bearish Signal (Ko)

The Chikou Span Cross: Strong Bullish Signal (cC)

Tenkan Sen Cross:  Strong Bullish Signal (Te)
The Kijun sen cross:  Strong Bullish Signal (K)

Last:
The Tenkan Sen/Kijun Sen Cross:  Strong Bullish Signal (T)

Dow 30 - End of Week Chart (EOW) - Analyzing 12 months Data - as on 31 May'13

Learning from the Past Week: (click here for that post)

Bulls unable to make new Highs .. #2..

The Oscillator #3 stays high.

Bulls celebrate 24 weeks spent above the Tenkan Sen #2 after bouncing of the Kumo (cloud)

Bears get another red week #2.

Bears end the week below last week's close, gaining an edge #2.

Bears make progress...

Looking Forward into the next Week:

Bears need the index back below the Tenkan Sen #2.

Oscillator staying High to be watched #3.

Bulls would look at keeping the advantage - keeping clear of the Ichimoku Indicators.

Bulls Hold fort. Bears dig in..

BSE Sensex - Ichimoku Study - Week: 27 May to 31 May: 2013 - Meeting for Deflection or Cross 3

.....Regulars can skip below and go straight to the chart......

Introduction / Preamble can be read at this link (click).

Quick Reference :

Chikou Span - pink line,

Kijun Sen - blue line,

Senkou Span A - black line,

Senkou Span B - grey line,

Kumo - grey shaded area,

Tenkan Sen - red line.

Previous Signals seen on BSE 30 - Week Chart (EOW) marked on chart as per notes below:

The Senoku Span Cross: Neutral Bullish Signal (Ss)

The Kumo Break-out: Bullish Signal (B)

The Flat Kumo: Bearish Signal (Ko)

The Chikou Span Cross: Strong Bullish Signal (Cc)

The Tenkan Sen Cross: Bullish Signal (Te)
The Kijun Sen Cross: Strong Bullish Signal (K)

New:

The Tenkan Sen/Kijun Sen Meet: Awaited a Strong Bullish Signal (T)

BSE 30 - End of Week Chart (EOW) - Analyzing 12 months Data - as on 31 May'13

Learning from the Past Week: (click here for the post)

Tenkan Sen & Kijun Sen lines stay met, precisely without a cross or deflection yet #2.

Index remains above the Kijun Sen line #2.

Oscillator ticks up #3.

Index ranges #2.

Kijun Sen and Tenkan Sen stay together for another week.

Looking Forward into the next Week:

A Bullish Tenkan Sen - Kijun Sen Cross, should be the next Bull ask #2.

Chikou Span getting below price line a must for the Bears #1.

A Bearish Tenkan Sen - Kijun Sen Deflection, may give the Bears a sneaky win #2.

Bears unable to move index below MVWAP 34, #2 - Bulls would keep power in this case.

Deflection or Cross? Tenkan Sen and Kijun Sen are again equal, causing the index to range.

Welcome Read

The Trading methods used here are suitable for those who (like me) are always Learners in the World Market (never presuming Mastery).

One learns with 'Technical Analysis' using Moving Averages, Channels, Time frames, Pattern & Candlestick Analysis, Fibonacci, Ichimoku Cloud, Oscillators & other Technical Indicators.

To comprehend the Dynamics of any Market, Peer Wisdom suggests, that we show plenty of Patience, keep it real Simple and adopt tons of Discipline.

We therefore use the same framework 'Patiently' every week - 'Simple' Technical Analysis Tools are repeated - The 'Discipline' of keeping a Neutral view is maintained.

So welcome to my notes - posted here for my Friends and Family.

Some Quotes..

There are times when playing the stock market that your money should be inactive - waiting on the sidelines in cash - waiting to come into play. In the stockmarket - time is not money - time is time and money is money. Often money that is just sitting can later be moved into the right situation at the right time and make a vast fortune – patience – patience. Patience is the key to success not speed.

Jesse Livermore.

That's been one of my mantras - focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it's worth it in the end because once you get there, you can move mountains.

Steve Jobs.

Discipline is the bridge between goals and accomplishment.

Jim Rohn.

Favorite Quote

"Why do we trade?

To be sure, trading allows us independence, the opportunity to work for ourselves. Trading also offers the prospects of a lifestyle in which evenings and weekends need not be consumed by work. Some of us crave the competitive aspect of trading, doing fresh battle each day. Others approach trading as a puzzle to be solved, deriving a sense of intellectual achievement. Finally, there is income. A successful trader can make seven figures in a year—and many of the traders I work with are living proof of that.

So why do they trade? Once you have the money, all of trading’s lifestyle advantages could easily be yours. Needs for competition and intellectual stimulation could be met in so many other ways. Why do traders remain traders long after they’ve won the game?

The great professions are those that serve as personal playing fields. They are the arenas we choose to express and develop ourselves. In mastering a discipline, we cultivate self-mastery. In writing a poem or placing a large trade, we capture—in a single act—our vision of how we see the world at that moment.

The great occupations are great precisely because they are such meaningful playing fields. Long after we’ve earned fame and fortune, the calling remains to be more than we are, to return to the arena and do battle with our limitations. The profound urge to extend the human grasp is common to all the great callings. To run faster, to capture more beauty, to predict ever better: in no small measure, our work is our pursuit of the godlike, however fleeting.

Maybe it is our different images of the godlike that animate our career choices.In work we find something divine within ourselves. Whether as scientists, monks, or traders, we strive for those moments when we are just a little closer to perfection, a little nearer to immortality. That is why we trade"

.... Brett N. Steenbarger

Inspiration

The Parable of Talents...

14 For the kingdom of heaven is as a man travelling into a far country, who called his own servants, and delivered unto them his goods. 15 And unto one he gave five talents, to another two, and to another one; to every man according to his several ability; and straightway took his journey. 16 Then he that had received the five talents went and traded with the same, and made them other five talents. 17 And likewise he that had received two, he also gained other two. 18 But he that had received one went and digged in the earth, and hid his lord's money. 19 After a long time the lord of those servants cometh, and reckoneth with them. 20 And so he that had received five talents came and brought other five talents, saying, Lord, thou deliveredst unto me five talents: behold, I have gained beside them five talents more. 21 His lord said unto him, Well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy lord. 22 He also that had received two talents came and said, Lord, thou deliveredst unto me two talents: behold, I have gained two other talents beside them. 23 His lord said unto him, Well done, good and faithful servant; thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy lord. 24 Then he which had received the one talent came and said, Lord, I knew thee that thou art an hard man, reaping where thou hast not sown, and gathering where thou hast not strawed: 25 And I was afraid, and went and hid thy talent in the earth: lo, there thou hast that is thine. 26 His lord answered and said unto him, Thou wicked and slothful servant, thou knewest that I reap where I sowed not, and gather where I have not strawed: 27 Thou oughtest therefore to have put my money to the exchangers, and then at my coming I should have received mine own with usury. 28 Take therefore the talent from him, and give it unto him which hath ten talents. 29 For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath. 30 And cast ye the unprofitable servant into outer darkness: there shall be weeping and gnashing of teeth.

The Holy Bible: Matthew - Chapter 25.