Market leaders and Market's Turning points

This thread is about my thoughts on the right way of trading the markets.

The right way to trade the markets is to buy the market leaders for swing for 2-6 months or more. Its the way Jesse livermore would have traded the markets.

This thread is not about trading intraday. its only about swing trading.

Will update the thread sometimes on daily basis and other times on weekly basis.. all my thoughts..

As of today,
We may be at a risky area for longs in the market, as the leaders in the current bull run are not making new highs , when nifty made a new high.

It either means, we could be looking at Sideways market or a correction in Indices and stocks.

Let's see how it pans out in the next few weeks. We are not looking to go long at these levels . We will look to buy leaders if we get a buy signal from our system.

As Expected,

Correction has started. Nifty is down just 1 day today, but many stocks are cracking down big time

Weakness seen in all the old market leaders as expected..

TATAMOTORS , TATAMTRDVR (Down 4%), CESC(Down 4.5%), ARVIND (Down 4%), CENTURY TEXTILES, VOLTAS , all the cement stocks of course .. and many others..

Also we are seeing PHARMA's and IT's showing strength

PHARMA companies like LUPIN, SUNPHARMA, RANBAXY
IT companies like TECHM, TCS

All though the buy triggered in Pharma and IT companies couple of weeks back, they are the leaders for now (DEFENSIVES).

When the next signals come, will let you know the new leaders in the market..

As of now, market is looking pretty weak.. No buying on dips recommended.

As William O'Neil points out, we need to buy the strongest ones which hold during the market correction. We will get some excellent buying opportunities.

On the side note : Bharti Airtel is looking Strong, No buying or selling as yet.. Just in observation mode..

As you can see correction has started, and will likely continue on the downside...

When Nifty tests 7450-7500, it might bounce for a day or two, but this correction will likely come below 7400.. So we dont want to buy the dip for long term, as there is a possibility of going to lower levels.
All these studies are not just based on price action but also on market internals, sentiment analysis, sector rotation , divergence etc ..

Well,

Timing is a bit off, markets are kind of consolidating... not seeing the strong down push which i expected.. But the weakness continues..
Lets wait for the next signal..

Well, Very sad i exited short positions yesterday.. And today it is following through on the down side..

Today, While the nifty looks like holding up , Carnage in many stocks..
Looks like, there will be a very good opportunity in the next few days

Big safe buying opportunity in markets
Can look to buy either Indices ( which will not give as much returns as stocks)
or the below set of stocks

BUY BPCL CMP 668 Stops 650 Add above 695 ( Futures, MUST BUY)
BUY Yesbank 578 Stops 572 Add above 595 ( MUST BUY)
BUY ICICIBANK 1522 Stops 1500 (MUST buy)
BUY SRTransfin 927 Stops 915
BUY JSWSTEEL 1243 SL 1230 (MUST BUY, BIG BUY)

can expect minimum 15-30% upmove from current levels
Timeframe for taking profits 1-2 months.
Risk-reward is the highest, risk is the lowest here


dont take these as trading calls , as i am not responsible for your profit or loss

This is just the start of the upmove.. can buy even today.. with todays low as stops