Lets imagine something here - if you are in a long trade (say long in Nifty @5240) your best dream would be a gap up of 80 points to 5320. That would get you excited and start dreaming about another gap up. There you go - you get a next day gap up too.
Awesome! Thank your stars and enjoy the profits.
But lets come back to reality - gap ups are what I call "sucker plays". Gap up to me signifies the market makers don't want co cover their shorts but they want the weak folks to cover their shorts.
It doesn't mean that market will tank immediately. It will keep going up but some day the reversal will come. And reversal will come when all shorts are screwed badly and enough dumb longs are in!
There were two back to back gap ups in Nifty:
And here I present you the "ULTIMATE SUCKER PLAY" -- gap up and make 52-week high. How much more insane can it get?
Disclosure - No positions in Nifty. Waiting to aggressively short when reversal starts! Even if it means the wait is for few weeks to months. Till then let the longs enjoy their profits.
Because no matter what the FIIs want to talk about INDIA being the "domestic story" or some shit like that - lets face it when the whole world is burning we can't be just making merry.
What was that they said in OCT2007-Jan2008 -- DECOUPLING - lol
And this is what happened ..
This time its "domestic story" - rofl
Any guesses what will follow? ...
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