Market Watch: Late Afternoon Rally

The Nifty remained under pressure throughout the day, then suddenly August futures surged from a low of 4331 to reach 4410 – a gain of 80 points in about 60 minutes.
What did the market know about tomorrow to surge today ?
We do not have the answer. But, the Nifty did go back into the narrow trading range of yesterday. A breakout from this range is again awaited, the move could be either up or down. If you were short (as you should have been) then there may be some pain ahead if the Index decides to move up tomorrow.
For the short term, the Nifty have touched the downside target which was mentioned on Friday:
Price Target Range: 4355 – 4225
Time range: August 18 to August 21
Both, Price and Time targets have been met.
Short term: A rally may be possible. Follow the momentum. Keep stop losses in case the trades do not work out.
Inermediate Trend: It does appear that the intermedaite up trend that started from 3790 may be complete. My software targets are 4075 – 3975 on the downside. The estimated time is aroound the first week of September.
Now, remember, targets are just that. There will always some targets that goes wrong.

Traders have fun, then who makes the sacrifice ?

Trading is fun, it is the world’s most favored vocation. It is not the world’s oldest profession, but probably is the second oldest. Most traders enter this profession for money. The first group of traders will eventually exit this business since they will not find the money they seek. A second, much smaller group of traders will stay on because they love trading, for them the money is incidential.(They also make money from trading, which just goes on to prove the Age old advice in the Gita: do your duty without the desire or greed to enjoy the fruits of your labor.)
This post is addressed to the first group of traders. 
You think you are working hard in trading ? You wake up early in the morning, start CNBC. You talk to your friends and colleagues about the market while getting ready. In the office, you stay glued to the trading screen with one eye and CNBC with the other eye. After market, you again waitch CNBC, then talk to your friends, broker & colleagues about the market. You watch the American markets while having dinner, then you stay glued to the TV as Udayan wraps up the day’s action. Then the news, finally closing bell on CNBC – for the American markets. Exhausted, you go to bed after the US markets close.
Work ? All of this sounds like fun. 
Who is making the sactifice ? Your wife, children, your immediate family. Often, new traders become strangers in their own house. Application of mind and understanding the markets is one thing – this requires reading & studying which newcomers never do.
So, use the remote. A smile on your wife’s face is worth a hundred closing bells on the US market. And for studying, buy books on technical analysis and read them – again and again. Luckily, Kapil from Vision Books publishes American editions at Indian prices (low cost). get them at www.visionbooksindia.com, or call them at : 91-11-2386 2201, 2386 2935