A CONSOLIDATING TUESDAY

FROM AN EXPERIENCE

1. The market expects you to accept losses.  If you want to play in the market you better be prepared to play by the market’s rules.  Accept the losses, make them small based on proper risk parameters, and the market will consider it a tithe.  Just set it aside and help pay for a pew, not the entire church.

2.  The market wants you to admit when you are wrong.  Commit to admit.  If the market is always right, and it is, then go ahead and let the market know NOW that you understand and accept its omnipotence.  Broadcast it to the heavens and to depths of the earth; broadcast it to your friends and family; broadcast it to your neighbors; broadcast it in every chat room you use to brag in.   Let everyone know you will be wrong more often than right and that you are OK with that.  If the market knows you do not mind being wrong the market will leave you alone.

3.  The market will reward your discipline.  Let’s face it, the market is one disciplined son of a gun.  When it says it is going to crush the bears with their death cross and the bulls with their golden cross it does.  When the market says a bearish economic report does not matter I am going higher anyway it will.  When the market says that cute little support line you drew is nothing but “a lead pencil and I am an eraser”, then erasing it will go.  Stick to a discipline of listening to what the market is saying and the market will whisper its direction instead of shouting its lies.

4.  The market is the calculator.  If you are attempting to reach 10 via the calculator, there are many and various ways of getting there:  5+5, 2+8, 15-5, 25 –15, or even  2 + 2 –1 –1 –2 –2 +3 +3 +3 + 3.  When it comes to making money in the market our calculator may want to make it to 10 much quicker than the market does and we may want to add 5 + 5 to get there but be prepared for the market to take its own sweet time adding things up.  If all that matters is getting to 10, then make sure the road you take is paved with minuses along with pluses along the way or all your money will be going to the 5508 (punch this number into your calculator and turn it upside down to see what it spells), which will make the employee a very unhappy and broke individual.

 #The market does not beat them. They beat themselves, because though they have brains they cannot sit tight. Old Turkey was dead right in doing and saying what he did. He had not only the courage of his convictions but also the intelligence and patience to sit tight.

- Jesse Livermore

#After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting.”

- Jesse Livermore

#What beat me was not having brains enough to stick to my own game – that is, to play the market only when I was satisfied that precedents favored my play. There is the plain fool, who does the wrong thing at all times everywhere, but there is also the Wall Street fool, who thinks he must trade all the time. No man can have adequate reasons for buying or selling stocks daily – or sufficient knowledge to make his play an intelligent play.”

- Jesse Livermore 

NIFTY FUTURES LEVELS FOR AUG 21

NEARBY RESISTANCES NOW @ 5440-5521

NEARBY SUPPORT NOW @ 5350

Day’s Resistance @ 5402-11-20-40

Day’s Supports   @ 5382-54

If sustains above 5383 for 5 minutes with good bulls volume see a sure hike upto 5404-11

Suppose if trades below 5382 for 5 minutes see an intraday slide upto 5362-58 

SELLING TIPS TODAY

SELL 

KESORAMIND, DREDGECORP, HINDALCO, 

JSWSTEEL, JINDALSTEL, 

ADANIPORTS, POWERGRID

But when & where today....? 

- Only our subscribers know to mint money by that - Join Hands and Enjoy

RATE CUT CANNOT BE PREDICTED: RBI

Amid widespread demand for a reduction in interest rates by banks, RBI today said rate cut cannot be predicted at this moment.

“You cannot say when the rate cut will come. Wait for our September policy,” RBI Deputy Governor H R Khan said on the sidelines of a function organised by the Institute of Chartered Accountants of India (ICAI) here.

The Reserve Bank is scheduled to review its monetary policy on September 17.

Khan’s comments incidentally come on a day when Finance Minister P Chidambaram asked banks to cut interest rates and keep EMIs at affordable levels to encourage sale of consumer durables that will restart the engine of manufacturing.

“The middle class is complaining about increasing EMIs and stretching payment cycle. The middle class, which consumes consumer durables postponing purchases, and that is not good for the industry,” he said.

“EMI must be kept at affordable level so that people will buy two wheelers, cars, refrigerators, washing machines, cooking ranges, mixies and grinders.

“That will keep the engine of manufacturing going and large industries continue to produce these goods. The suppliers of parts and accessories in the small and medium enterprises will continue to do business.” Chidamabram said.

A fall in inflation in July has boosted hopes of a rate cut by RBI. Inflation based on Wholesale Price Index (WPI) declined to 6.87 per cent in July from 7.25 per cent in June. It is, however, still above the RBI¿s 5-6 per cent comfort level.

Khan also said RBI is taking steps for flow of capital with focus on creation of non-debt capital, “We are trying to improve capital flows through FDI and NRI deposits.”

On rupee’s exchange rate volatility, Khan said, “Our approach is that there should be orderly movement of rates in the market and there should not be any volatility.”

“Let us see what can be done to contain gold demand,” he said, adding a committee formed by RBI will come out with its report in two-three months.

Earlier addressing ICAI’s conference, Khan said focus should be on the domestic exploration of oil and gas as 70 per cent of it were being imported while 100 per cent of gold requirement was also coming from other countries.

He also underlined the need to increase agricultural productivity in order to survive the impact of the global financial crisis.

RBI to decide on rate cut in Sept

RBI is taking steps for capital flow into the country and will decide interest rate cut in its Sepetmber policy.

“You cannot say when the rate cut will come. Wait for our September policy,” RBI Deputy Governor H R Khan said at the sideline of a function organised by Institute of Chartered Accountants of India (ICAI) here.

Stating that RBI was taking steps for flow of capital with focus on creation of non-debt capital, Khan said “We are trying to improve capital flow through FDI and NRI deposits.”

On the market slide, he said RBI was making efforts to contain rate volatility. “Our approach is that there should be orderly movement of rates in the market and there should not be any volatility.”

The RBI deputy governor said import of the yellow metal has come down and a committee formed by the apex bank will come out with its report in two-three months. “Let us see what can be done to contain gold demand,” he said.

Earlier addressing ICAI’s conference, Khan said focus should be on the demestic exploration of oil and gas as 70 per cent of it were being imported while 100 per cent of gold requirement was also coming from other countries.

He also stressed on the increase of agricultural productivity in order to survive the impact of the global financial crisis.

POSITIVES & NEGATIVES OF THE WEEK

Positives:

1) Continuing the Draghi put rally, the Spanish IBEX trades higher each day this week and closes at 4 month high. It takes the Italian MIB index with it. 

2) US Retail Sales bounce back in July after previous 3 months in a row of declines.

3) Initial Jobless Claims about in line at 366k but below 370k for 2nd week and clean of July auto distortions.

4) US CPI rate of change benign in July.

5) July IP up .6% (but June revised lower) led by auto’s.

6) NAHB builder survey rises 2 pts to 37, highest since Feb ’07.

7) Multi family starts rise in July as do permits for multi and single family.

  UoM confidence in Aug ticks up led by current conditions at best since Jan ’08.

9) India inflation less than expected, Sensex near 5 month high.

Negatives:

1) If Fed’s goal is to keep rates as low as possible, what do they do now if reason for recent jump is temporary calm in Europe? QE3 alive and well after voting member Williams says he wants it.

2) NY and Philly mfr’g indices for Aug show contraction, Philly for a 4th straight month.

3) Single family home starts down 35k in July.

4) MBA said purchase apps fall for 5th straight week to lowest since Feb.

5) Economic outlook within UoM confidence falls to lowest of the yr.

6) Inventory to sales ratio within Business Inventories rise to most since Feb ’10 due to sales drop.

7) PPI both headline and core rise above est.

  Euro zone Q2 GDP contracts .2% q/o/q.

9) German ZEW falls to lowest of the yr.

10) Japan’s Q2 GDP rises less than est.

11) FDI in China falls for 8th month in past 9 in July.

12) AAA says gasoline price moves up another .04 to $3.72, to the highest in 3 mo’s.

DISCLAIMER 

THE RECOMMENDATIONS MADE HERE DO NOT CONSTITUTE AND OFFER TO SELL OF A SOLICITATION TO BUY ANY OF THE SECURITIES/COMMODITIES OF ANY OTHER INSTRUMENTS WHATSOEVER MENTIONED. NO REPRESENTATIONS CAN BE MADE THAT THE RECOMMENDATIONS CONTAINED WILL BE PROFITABLE OF THAT THEY WILL NOT RESULT IN LOSSES. READERS USING THE INFORMATION CONTAINED HEREIN ARE SOLELY RESPONSIBLE FOR THEIR ACTIONS. SURFING OR USING ‘tradersharmony.blogspot.com' DEEMS THAT THE SURFER ACCEPTS AND ACKNOWLEDGES THE DISCLAIMERS AND DISCLOSURES.THE INFORMATION PUBLISHED ARE FOR EDUCATIONAL AND INFORMATIVE PURPOSE ONLY AND THE USER/READERS SHOULD TAKE ADVICE OF HIS/HER ADVISER BEFORE TAKING ANY DECISION FOR BUYING, SELLING OR OTHERWISE DEALING WITH SECURITIES/COMMODITIES OR ANY OTHER INSTRUMENT WHATSOEVER.