Systematic Momentum and Pullback Swing Trading

[spn1305]

Had quite a few trades triggered today. In the 12MA weekly, had Poly Medicure, R systems, and MCX trigger. R systems looks quite choppy, will cut risk soon.

In SHIB, had Marico and Ramco Cements trigger. Marico is a re-entry, I've already tightened my stop and cut risk to half. Let's see how Ramco Cements plays out. Lupin did well. Aurobindo didn't.

It's quite weird, I'm not too bullish on the market over the short-term with a fundamental outlook, but I'm having plenty of trade setups trigger.

-Smeet

 

[spn1305]

27/05/2020

Crazy day today, I feel most of it was fueled by short covering though, specially in banks. Banknifty closed 7% up. You could've caught a setup in Axis Bank if you were looking at the pre-open.

Holdings under SHIB: Aurobindo, Lupin, Ramco, and Marico didn't do great today. Wondering if a sector rotation is in play but it's definitely too early to say. I'm holding on and adjusting stops. I'll share my trailing stops on them if interested.

12MA weekly did great thanks to MCX today, which closed 7% up. Poly Medicure closed up 4.5%, R systems is still slightly lower than our breakeven. Had trades in Granules and Amber Enterprises trigger.

It's important to adjust stops in this environment. Let's watch what happens post expiry.

-Smeet

 

[spn1305]

Market's going good today but our trades are not, due to exposure to Pharma. I don't have any exposure to banks in my trades for fundamental reasons, and banks have been driving a major part of the rally this week.

It's definitely too early to say, but Pharma's performance this week has been disappointing. Since it was the leader of this post covid rally, it makes me wonder if we are beginning a short bear cycle which is being shadowed by short covering.

-Smeet

 

[spn1305]

Btw, does anyone know how I can move this thread to the equities forum?

 

[spn1305]

SHIB ended well today after all. Booked profit on part position of Marico at 333.85. Adjusted stops on some positions. Adding NIIT Tech to the watchlist, here's the setup:

Will buy above 1573 with SL of 1462.

No new trades triggered under the 12MA weekly, we saw some correction after yesterday's gains.
Anybody following these setups and using the screens?

-Smeet

 

[spn1305]

Trailing stop hit for Lupin @850. Chopped. Took a 0.45R loss instead of a full 1R but Lupin quickly rebounded. Other trades are going fine

 

[nimitnnshah]

I'm using the screen!

Pharma seems to have been tired after the morning action that we saw today morning. On the brighter side, it hasn't given up the gains yet. It will be interesting if we enter June with the same bullish sentiment on Pharma.

 

[spn1305]

Ending the month up 4.3R on SHIB. Booked 1R of profit in Marico so far, half position still open.
In the 12MA weekly, MCX reached first target of 13%, sold half. Entered Relaxo Footwears @680.
Adding to watchlist: Berger Paints, Dabur, Nestle, Pidilite.

In SHIB, Power Grid has come up on our watchlist. I'll spend some time over the weekend doing some research about it. Anybody here have any views?

Looks like we'll be overweight consumption from next week. What are your thoughts on that?

-Smeet

 

[nimitnnshah]

Powergrid is recovering from the March mayhem and is gaining some momentum. Not too sure if it could benefit from the stimulus given to the DISCOMS. I think you could enter a position, with a minimum stop loss, although it is against your system.

 

[spn1305]

@nimitnnshah It's not against the system since it has come up on our watchlist, based on a screen following the criteria we're looking at. I did add it over the weekend, and took a position with 0.5R risk relative to other positions.

We had plenty of fresh buys. Entered positions in Muthoot Finance and Power Grid under SHIB. Booked 1R profit on half position in HCL Tech.

In the 12MA weekly, we entered positions in Dabur and Pidilite. Had to sell some Granules and R Systems International to meet the margin requirements for the Pidilite purchase. Relative risk is now 0.25R in Granules (because we had entered with 0.5R in the first place), and 0.5R in R Systems. Would be funny if they shoot up though. Otherwise, the 12MA weekly had a great day today, with our portfolio gaining 1.25R (2.5% if you risk 2% per trade)

-Smeet