MARKETS FOR 3RD AUGUST

AS PREDICTED YESTERDAY, NOTHING CAME OUT OF ECB MEETING & INSTEAD IT STRENGTHENED THE HANDS OF DOW  OPERATORS TO BOLDLY SHORT THE WORLD MARKETS THAT WILL SEE THE ASIAN WHIPPING BOYS DANCING TO THE TUNE OF DOW OPERATORS ON FRIDAY & MONDAY MORNING. EVEN THE NON FARM PAY ROLL DATA TO BE OUT IN U.S. ON FRIDAY NIGHT WILL BE MANIPULATED TO  DEPICT WORSE
THAN EXPECTATIONS TO DELIVER ANOTHER KNOCK OUT PUNCH TO ASIAN MARKETS ON MONDAY MORNING. SO, EVEN THOUGH THE UNDERTONE FOR INDIAN MARKETS HAD TURNED BULLISH &  THE DAILY TECHNICALS HAVE GENERATED BULLISH SIGNALS, YET TRADERS SHOULD NOT HESITATE TO QUIETLY WAIT FOR AN OPPORTUNITY OF AN INTRADAY RISE IN THE MARKETS TO UN LEASE THE ENTIRE SHORTING POWER AVAILABLE TO SHORT THE MARKETS AND CARRY THE SHORTS TO BE IN LINE WITH THE OPERATORS .

ONE SHOULD EXPECT THE MARKETS TO BE UNDER THE TIGHT GRIP OF EXTERNAL OPERATORS FOR NEXT FEW DAYS AND SHORT, SHORT  AND ONLY SHORT ON EVERY INTRADAY RISE SHOULD BE THE MAIN THEME OF TRADERS AS LONG AS SPOT NIFTY CONTINUES TO TRADE BELOW THE CRITICAL ZONE OF 5258 TO 5268 SPOT ZONE TO REVERSE FOR LONGS ONLY ABOVE 5268.  SIMILARLY IN CASE SPOT NIFTY APPROACHES THE LOW OF 5160 TO 5150, THEN ONE MAY PLAN GOING LONG FROM THERE WITH A STOP LOSS BELOW 5151 TO BOLDLY REVERSE THE TRADES  FOR RUTHLESS SHORTING AGAIN IN CASE SPOT NIFTY SLIDES BELOW THE CRITICAL TUESDAYS HAMMER LOW OF 5154.

FOR FUTURE TRADERS, EXPECT AN AS USUAL  GAP DOWN OPEN AND ONE SHOULD EXPECT DOW AS WELL AS SGX OPERATORS TAKING THE MARKETS FURTHER DOWN AFTER THE GAP DOWN.  NIFTY FUTURE TRADERS MAY LOOK FOR THE FUTURE LEVEL OF  5222 TO 5218 INITIALLY FOLLOWED BY THE CRITICAL FUTURE LEVEL OF  5200 TO 5195 TO ENTER MEGA SHORTS. HOWEVER IN CASE THE LOWER FUTURE LEVEL OF 5200 TO 5195 IS PROTECTED THEN  ONE MAY HOPE FOR A GOOD BOUNCE IN NIFTY FUTURES. LAST WEEK NIFTY SPOT HAD CLOSED AT 5100 AND PRESENTLY SPOT NIFTY TRADING AT A MUCH HIGHER LEVEL AROUND 5228  WHICH WILL NEVER BE RELISHED WELL BY THE OPERATORS WHO WOULD MAKE THE UTMOST EFFORTS TO PULL INDIAN MARKETS DOWN IN ORDER TO HIDE THE OUT RIGHT BULLISH INDICATIONS THAT THE TECHNICALS HAVE GENERATED SINCE LAST FRIDAY AFTER THE MANIPULATED EXPIRY DAY LOW OF 5032 SPOT.

WELL, OPERATORS WILL TRY THEIR BEST IN NEXT 2 TO 3 TRADING DAYS TO SEE THAT THE EMA GOLDEN CROSS OVER NEVER HAPPENS TO STRENGTHEN THE DMA GOLDEN CROSS OVER AND ONE SHOULD NOT BE SURPRISED  TO SEE THE NON FARM PAY ROLLS IN USA IS SO MANIPULATED ON FRIDAY NIGHT IN ORDER TO SEE DOW AGAIN FALLING BADLY TO PULL DOWN  ASIAN MARKETS ON MONDAY MORNING WHICH WILL INDUCE ANOTHER FALL IN INDIAN MARKETS THAT MAY NEVER ALLOW THE BULLISH CROSS OVER OF THE 50 & 200 DAY EMA DURING THE COMING WEEK  WHICH  WILL GENERATE ANOTHER PSYCHOLOGICAL FEAR THAT AUGUST MONTH IS REALLY BAD SIMILAR TO THE DEADLY MONTHS OF MAY & OCTOBER,  EVEN THOUGH THE MONTH OF AUGUST TECHNICALLY LOOKS BULLISH AFTER THE HOPELESS LAST MONTH OF JULY.

IF AT ALL ONE HAS TO CARRY OVER THEN CARRY MORE SHORT POSITIONS & LESS LONG POSITIONS. OPTION BUYERS MAY BUY 5200 PUTS ON EVERY INTRADAY RISE OF MARKETS AND BOLDLY HOLD THESE TO ADD HALF THE NUMBER OF 5200 CALLS ON INTRADAY FALLS TO CARRY EITHER EQUAL NUMBER OF CALLS TO PUTS OR CARRY TWO PUTS TO ONE CALL RATIO. REMEMBER THERE IS NOTHING WRONG IN INDIAN MARKETS, IT IS QUITE HEALTHY, BUT IT IS THE OPERATORS ACTION COUPLED WILL NEGATIVE SENTIMENT GENERATED BY THE OLD FINANCIAL CHANNELS WHICH ARE RUINING THE INDIAN MARKETS.

Source:Queenstrade