Thursday, August 20, 2015

Market update

Previous market update here 

Was that update like 3 hours back? :) That is how much this market allowed me to sleep. :( Sometimes (FOMC/ OPEX), the market doesn't allow us to sleep. We are being used to working hard. We will catch up during the weekend, not to worry. Since I am sleepless anyway, I will present few interesting charts below.

Based on the market close, we will post updates.

Chart below: Since the cash markets are closed till 930 am EST, we will talk using the futures charts. A close of /ES (daily chart) below 2060 triggers the ST sell signal. A close above /ES 2060 is hold. A close above /ES 2072 reiterates a buy. 

Next lower level to watch for /ES is 2035. A close below that will trigger a LT sell. Clear? Any questions please raise your hand. 

Next up is FB - chart below. Yesterday's wild swings in the market did not influence this ticker a bit. FB held its nerve and closed +ve. Buy with a stop below the orange rectangle. A close below that rectangle will trigger a short position.

Next is Gold. My neighbor told me yesterday that Gold's bear market ended and it will never go below $1000. Well, there are no fixed claims in stock markets. We are very flexible to buy or sell. No fixed opinions here. 

Chart below: Gold is up against some strong IT resistance. We reckon Gold is a sell here. The recent uptrend should end here. A close above that line is a IT buy with a stop 1% below that line. In simple terms, a daily close above ~ 1142 is a IT buy with a stop at ~ $1130. Got it?

We have seen some positives yesterday despite the sell off in the markets. LQD closed positive. Let us see how it will follow through. LQD has been a sell for more than 6 months but let us see if this ticker will turn a corner. No recommendation but thought this was interesting. Chart below.

We have a recommendation for you. This ticker is low volume, so you got to have a 10% stop. And please don't get heavy on this name as I said this is (relatively) new ticker to the market. Buy EROS with a stop @ ~ $35.


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