Enjoy!
Cheers,
Jai

Thank a lot Jai Bala for the explanation. Now I can see the difference in the charts. But I got to say this – you use elliott wave principle in effective way than the elliott wave people themselves. 😀

Happy Holidays

-Kishan

Yes, it does look like there will be a bounce. I need to check the hourly charts here doesnt seem an easy count but it looks like it may not cross 1870 or max 1905 during the relief rally.

Best regards,
Jai

thanks

Jai,

I had shorted a pretty significant quantity of Hero M and hence decided to book profit at 1840. However, I am feeling that I might have exited early. A few questions :

– do u see a bounce in the stock in the short term ?
– should I re enter now ?
– any long term targets ?

Thanks. Again ur call on L&T for three digits bordered on the impossible when u made it, but……

Regards

I think 30 is ok for now as the market is trending lower. On the day of pullbacks you will get stopped out. LT will drop to 830 or 700. If you get stopped out with this 30 point, wait for LT to reverse – re-enter when it breaks the previous day low and then maintain stop above the 2 day high. Yes maintain indusind 200 could get delayed to January but the trend is lower.

Best regards,
Jai

Hi Kishan,
You should also try to look at 1 degree on the higher time frame – a rough idea would suffice. For INR there was a huge 5 wave rally from 08 to 09. So at the bottom of Aug, you could be convinced that the correction was over. For GMR there was a huge 5 wave decline from 07 to 08. And the high of June 09 was exactly 61.8% retracement of the down 07-08 down move. If you had seen this, you would have known that the higher time frame would not have allowed a huge rally. The high of 65 in Aug 10 was the 2nd wave of a downswinging 3rd wave – so you were playing the countertrend rather than the bigger trend.

I did not track GMR so closely – I do not know what I would have done if I had been tracking. Remember, your mistakes in the markets are invaluable lessons. Stay true to your counts and then when proven wrong by market learn from it.

Cheers,
Jai

I was bit confused. Around August 2010 I invested in GMR Infra at Rs.56. I was looking for a third wave rally. After certain time it was not behaving as It was in Third Wave so I did exit that stock taking bit of loss. If you see the ‘USD Vs INR’ Chart (When it was around 44) it was exactly like the GMR Infra chart at that time. From 44 it moved up as it was a third wave. Can you explain the fundamental difference between two charts.

By the way I took position in nifty as per your call and booked profit today. Thanks a lot for that.

-Kishan

I do not know how much it will bounce or if it will bounce at all. Try buying a put. Difficult call now decide if u shud go for Jan or Dec. You do not want to pay too much premium by buying Jan OR buy Dec and loose bcos of time decay.