09/05/2012

From yesterday's post :

 

The lack of a buying tail was evidence that there were no new buyers in the activity of today, just closure of shorts, which makes one believe that these would come back at higher levels.

 

We also saw that the upmove was on short covering and as stated in the charts , shortcovering always weakens a market.

 

Nifty Mp 20 09/05/2012

 

The market spiked lower in the last hour of trade.

 

Spike ruiles apply at the open tomorrow and like yesterday buyers these new sellers if they do not manage to pusgh it lower than the close will be punished at the open as the move did not enjoy value.

 

In the tradingf room and on twitter I had mentioned :

 

[09:45] Shai C: buyers failing to show up at open stands for rejection of yesterday's higher prices

 

The reverse holds truw for sellers tomorrow in the context of today's activity.

 

Bn Mp 21 09/05/2012

 

Watch the spike range at the open.