Thursday, July 16, 2009

Maintain the shorts but be cautious

As I had mentioned in my previous post, HDFC did not move to the expected target of 2300 Intraday, it took support at 2342 and reversed; it triggered our intraday stoploss and went upto the target of 2430 where we had positioned ourselves to go short, now as I am writing HDFC has opened up at 2476 but it could not hold at that point and hence our first stoploss of 2460 should not be placed if by any chance it still excels 2460 50% of the position should be exited while the remaining to be exited if it crosses 2500 and if it doesn’t hit these stoplosses we can held the short positions in short term.

Hero Honda too excelled our first stoploss of 1520 but didn’t sustained over there so no need to cover the short, but any movement above this exiting half the positions is necessary which could be again built close to 1585, Bharti Airtel too opened up at 800 and hit our first stoploss, but no need to panic as it too as not sustained at that point, but we need to be extremely cautious.

Strictly maintain the stoplosses as by taking bearish positions we are fighting the strong enemy by the name US Federal Reserve and all the policy deciding Major Central Banks of the world who might even drop money from Helicopters (this are the comments by Ben Bernanke, Chairman of US Federal Reserve) to inflate the economy and cause disasters for many people living below poverty line in India as well as the World and anyways we are here to make money and to make money we have to keep our hearts out and trade with our brain so strict stoplosses and keep in mind we are in a recession but it could be deflated inflation or hyperinflated recession wherein 1 Crore note would be required to buy bread, so be cautious and don’t be over confident.

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