Vodafone IDEA Vs Media (The Art of Creating Panic)Vodafone Idea is a Great Example and a Very Easy pick for Pathetic Media Channels to nitpick for Triggering Undue Panic among Retailers
Look at how the Media houses unfolded their evil plans
News # 1 - Thursday 19th Sep - Vodafone's Target price slashed criminally to Rs. 2 (from Rs. 13)
This caused the Price to crash -19.53% on Thursday and we immediately said NOTHING would happen to Voda as the SC's judgement is common to all Telecom operators involved in the Curative Petition, but Media Channels like NDTV painted a Blood-bath picture only on Vodafone as its the Weakest. Both Reliance Jio and Bharti Airtel were trading Positive on Thursday.
www.ndtvprofit.com
News # 2 - Friday 20th Sep - Clarification that the Curative petition does not affect the lenders
By this time the Price recovered from 9.8 to 10.5
telecom.economictimes.indiatimes.com
News # 3 - Monday 23rd Sep - Conclusion of Mega Deal with Vendors and Lenders
Now today Idea blasted over +10% intraday, but now trading around +6.5%
x.com
Media Houses are Making a Royal Fool out of the Investors and Retailers. Before an investigation could complete, they write articles creating Negative Hype, Crashing the market and making People lose Money
Is this Ethical ?????
Anyways, On the Monthly chart - watch carefully as the Price started taking Resistance on Jun 28th itself from the peak of 19. The Fall was triggered almost 3 months before all these Bullshit news came out and now the recovery has started
But this is NOT yet the end of the story, the price WON'T take a V-Shaped Recovery, the price would fall again to 10.5 zone and go sideways to accumulate power and then finally Blast out to hit the previously given targets of 19, 25, 30
So, people who are looking to Average - NO NEED TO RUSH. Wait for the interim falls to 10.5 levels and sideways movement. It will give you ample opportunities to average at lower levels, but at the same time - there is absolutely no need to Panic
Panicselling
Nikkei - Yen Carry Trade - Real or Cheap Politics ???2nd Week of August felt like we are in midst of Peak Autumn Season - Wherever we turn - Every Tree is turned Fully Red. The Entire World market was brought down to its Knees, given the "EXCUSE" of Japan's Yen Carry Trade
assets.bwbx.io
Yen carry trade is estimated to be around $20 trillion, according to Deutsche Bank, which is 505% of Japan’s GDP. Other estimates, based on foreign lending data, suggest it is about $1 trillion, while Japanese investors’ net international investment has grown to $3.4 trillion.
All these stories are fine - but it was presented to the world by the Cheap Media houses. Multiple news were mixed up (Yen Carry Trade + US Recession + Iran War Escalation). It was being reported that the entire world economy will dive into Recession, Indian Economy would face a Major Correction with some "Brilliant Minds" predicted that Nifty would crash to 11,000 in next 2 years ? Really ??? Even common-sense says these are Non-Sense
Here is a Detailed R&D with Step-by-Step explanations unveiling the Evil intentions of Big Players, Media Houses who wanted to take quick advantage of the News to bring the prices down in a Flash
Comparison of Nikkei's Weekly Chart vs Daily Chart
1. Nikkei had a clean Cup and Handle Breakout around 33,820 levels in Jan 2024 following which the price blasted nearly 22% in 2 months
2. The Price then faced Multi-year Parallel Channel Resistance on Mar 18th week and started falling and bounced again taking support of Fib 0.5 only - Typically when Fib levels are NOT combined along with previous Support and Resistance - they are susceptible to be broken down again if there is a News based fall
3. By Jul 8, Nikkei tested the price levels of Mar 18 and fell - initiating a Double Top pattern with neckline set at 36,670 and the price was falling Non-stop from July 8 already....
4. Now comes the News from BOJ on Wednesday Jul 31 that the rates are increased by 0.25%. As I always say, ANY NEWS has the Power to Break one or more Supports (or) Resistances. In this case, the Negative publicity by Big Media caused a -5% fall on Aug 1st (Thu) resulting in Breakdown of Double Top Neckline
Key Point to remember is that the Fall was Pre-destined in Mar 18 and then on July 8 technically. The Negative News "JUST" Added "Fuel-to-the-Fire" setting ablaze the entire world market in a flash
If there was NO News - still the Breakdown could have happened and if it happened, then the price would slowly come down to the Cup and Handle Breakout zone of 33,820. But the Overhype given my Media + US Recession (another Fictitious Horror Story) + Iran War escalation fears caused the price to Breakdown the 33,820 support level
As per Double Top pattern, the price would reach the same place from where it Started the "M" pattern and voila - it came exactly to the same level of 30,404 on Aug 5th reaching a Intra-day low of -12.65%.
Despite breaking 3 Support levels on Monday, the price took the next Support and bounced back "Same Day" above 2 of the Supports
Remember - Neither BOJ Governor nor Japanese PM/FM did anything to Stop / Reverse the price action on Monday. The calming news from BOJ Deputy Governor that there will be NO further rate hikes came out on Wednesday. But by that time, the price regained above all 3 supports which was broken (reaching above the Cup and Handle BO ZONE)
For those who don't believe Technicals didn't save the game - tell me your Story. What caused the reversal from 30,400 zone ? Entire world is driven by Technicals and NEWS can ONLY cause a temporary direction change
By Monday - Japanese economy had already touched -30% down in 30 days since Jul 8. Its impossible for a country's economy to crash so fast and still fall below. it would be a Catastrophe and even the Big Players who wanted quick gains know this, but they just wanted to Play a "Cheap Game" capitalizing on the Panic sentiments of Innocent Retailers
Understand the True working of Market - Stay Confident - Build your Wealth.
Disclaimer:
3+ Years Teaching Experience in Stock Market - Technical Analysis, Behaviour Analysis, Advanced Patterns, Emotional Management, News based Trading...
We are NOT SEBI Registered and Our focus is NOT providing Buy/Sell Recommendations/calls. Primary Objective is to provide detailed analysis of how to review a chart, explain multi-timeframe views purely for Educational Purposes.
We strongly suggest our followers to "Learn to Ride the Tide irrespective of its Side"
*** Important *** Consult your Financial Advisors before taking any positions
If you like our detailed analysis, please do rate us with your Likes, Boost and share your comments
-Team Stocks-n-Trends
NVDA Update: How Low Can She Go?NASDAQ:NVDA was over-speculated. It is a component of many ETFs based on all kinds of index funds, from semi-conductor ETFs to Big Blue chip companies, etc.
NVDA was the big loss stock for the NASDAQ on Friday. The huge down day was due to many retail investors and smaller funds running for the door. This has nothing to do with its earnings report. It is a universal panic in the stock market. Pro traders bought the stock in the last few minutes of the trading day. Now the stock is close to being a buy on the dip candidate.
The angle of descent is too steep to sustain but the price can collapse further as there is not a Dark Pool Buy Zone firmly established at this level.
Revenues and earnings have been showing exponential growth but the next earnings report is a month away. Just keep in mind that the economy is booming. We had a nudge of higher inflation mostly due to oil prices but some due to corporate growth. Inflation = Growth.
Small Cap - Froth Few Away ??? :) :) :)Nifty Small Cap - Remember Madam Madhabi's speech on Mar 11 and the great fall....Marked in BLUE Arrows. We are back to same Level. So, where is the Froth ? Flew away with the wind ?
Look at how many RED LINES (Supports) were broken from Mar 11 till Mar 14th. All of them turned back as Resistances.
Guys - why is no one asking this question yourselves ? If the Market is Indeed weak - Breaking support is ok, but how can it take a V shaped U turn and Break all the Resistances on the upside ? Please don't fall prey to Panic Selling Messages.
Remember - we think we are outsmarting the market, preserving our capital, waiting for market to come down to do bottom fishing. But when the market is falling like crazy - how many of you know when to do Bottom Fishing ? Do you all have confidence to buy when market is still falling ? When market turns back quickly and gives sudden upward move - how many of you feel you missed your entry points ? LC to UCs
I have given so many examples of LC to UCs. We can't time the market, neither can we outsmart the market. We need to Learn to Ride the Tide irrespective of its side. To do that, we need to have conviction first, then follow support and resistances and then make informed and rational decision
I know one thing for sure - very limited folks in this group sold off their positions at levels higher than Mar 11. Many sold after the Mar 11 instigated crash. Now most of our Ex-Holdings would have come above our sell-off zone ? Isn't it
there could always be few exceptions which still might be struggling. Out of my 94 stock portfolio which is Small and Mid Cap heavy - most of them recovered to Pre-Mar 11 levels. And many are not so Fundamentally strong. But how did I get back the recovery ? Because market is not rational between Fundamentals and Technicals always. Over a long run it might equalize, but by that time, I will make my money and say TA TA to those stocks.
Disclaimer:
3+ Years Teaching Experience in Stock Market - Technical Analysis, Advanced Patterns, Emotional Management, News based Trading...
We are NOT SEBI Registered and Our focus is NOT providing Buy/Sell Recommendations/calls. Primary Objective is to provide detailed analysis of how to review a chart, explain multi-timeframe views purely for Educational Purposes.
We strongly suggest our followers to "Learn to Ride the Tide irrespective of its Side"
*** Important *** Consult your Financial Advisors before taking any positions
If you like our detailed analysis, please do rate us with your Likes, Boost and share your comments
-Team Stocks-n-Trends
Indian Indices - Realize Truth, Ignore Noise (Don't Panic)
Small Cap -
Mid Cap -
Metal -
Nifty IT -
Media -
Realty -
Nifty 50 -
FMCG -
Fin Service -
Bank Nifty -
Whoa What a Day Today !!! A Full Day of Swing Left and Right to extreme levels.
Tell me honestly how many Youtube Channels, Telegram Channels, WhatsApp Groups, Expert Commentaries came today with atleast one of the below Warning Messages
See I told you, Mid Cap and Small Cap are due for Correction and the Correction started today
This is just the Beginning - more pain ahead
Safeguard your Capital, Book SLs on Mid and Small Caps
Book profits on your trading stocks, save capital for a market fall
And what not......
For a Retail Investor - any of the above message will Translate Only into "Panic Selling" and nothing else. Its the prime duty of so called "Market Experts" to paint the right picture, convey the reality in right way without triggering Panic. Else - better to stay away from giving expert advice - because one Panic message completely Destroys any-and-all Profits a small retail trader would have gained for the past 1-2 months.
So, what's the point in giving advice which does not help anyone ??? Now let's review each Index what really happened.
The underlying force which controls the market is Support and Resistance. Whether its a Positive/Negative News or Politics or Profit Booking or FII Activity or US Treasury Bonds - eveything operates within the boundary of One-more Support & Resistances
1. Small Cap
The support levels were shared in our Telegram Channel last week itself. Look how exactly Small cap index tested and rejected from the Support at 16030. And how big is the wick ? Buyers showing strength lifting price up
2. Mid Cap
Once again 2 support levels - 48490 and 48050. One pushed the Wick up and Other was powerful enough to push the Candle Body itself up. Again, Good strength from buyers leading to a Huge Lower Wick
3. Metal
Nifty Metal index had the Biggest Fall among Nifty Peers. It had a Flag Pattern BO recently and did a BO-Retest today and found support from 2 levels in the flag (Flag Top and Flag Middle) and the support was strong enough to push the Price higher than the Flag top. So, Still Bullish....
4. Nifty IT
After finishing a Big Rounding Bottom on Weekly, it formed a smaller Rounding Bottom on Daily and after Breaking that as well - it came back to Retest the BO zone. See very clearly the BO zone providing the needed support for IT index. So, this is also in Bullish mode despite the Red candle
5. Media
Nifty Media formed a Bearish Double Top pattern on Weekly, but taking support at 2115 - look at the strong bounce. The big fall this week got negated by a Stronger Bullish Green candle. Amazing recovery. There are 3 back to back supports - 2115, 2050, followed by Parallel Channel Trendline around 1950 zone. Until all 3 are broken down - Media sector is BULLISH
6. Realty
Nifty Realty formed a Perfect Double Top pattern at 895, but took beautiful support at 875 finally ending up in a Perfect Hammer Pattern which is bullish reversal indicator
7. Nifty 50
I have been screaming of the support zones in Nifty at 21780, 21725 ever since Channels were cautioning about Big fall coming. Look how 21725 gave the push today. Both on Daily and Weekly scale - only Wick below the support levels. On Weekly - the price is comfortably above both support levels - yet people keep passing Panic Messages
8. FMCG
On weekly - its a Perfect Rounding Bottom BO followed by a perfect Retest. Finally the price did end ABOVE the BO zone
9. Fin Service
Fin Service formed a Gap between 20570 and 20255. The Cavity got Finally filled (as expected) multiple times and price took support form the Long term Parallel Channel Trendline for 2nd time. Strong bounce today - until price falls below 19910 and 19775 - sector is Bullish
10. Bank Nifty
The Leader among the Nifty Peers. Strong 620 points up. Same as Fin Nifty - Cavity Filling done and Support Taken from long term parallel Channel trendline
Folks - Now tell me - 10 Sectoral Indices have been reviewed here. Nothing Bearish. Yet there is ONLY noise in the entire market, all channels giving instructions to Book Profits, execute Stop Loss. Why ?
The Channel Admins, Big Players, Brokerages have so much funds to take on small SLs and rotate their funds, but for small Retail players - even a small SL will destroy their investable principal. Even if you are doing Swing Trading - why to book SLs when the stock is not going Bankrupt ? It will take few days to weeks for the same stocks to recover and you will repent for booking SLs there.
Before taking decision on SL booking - following instructions must be followed
Wait for Weekly Close
Check all your stocks to see how bad the support levels are broken
Check where is the next support level
Only when the next support level is too far down - take a conscious decision to book SLs. Else close your trading terminal and take some rest. market will do its magic recovery
Disclaimer:
Stocks-n-Trends is NOT a SEBI registered company. We do not provide Buy / Sell recommendations - rather we provide detailed analysis of how to review a chart, explain multi--timeframe views purely for Educational Purposes. We strongly suggest our followers to "Learn to Ride the Tide" and consult your Financial Advisors before taking any positions.
If you like our detailed analysis, please do rate us with your Likes, Boost and share your comments
-Team Stocks-n-Trends
Guru Drona (Market) Vs Smartest Disciple Arjun (Investors)The Market has the habit of Shrugging-off Weak Hands every once in a while by creating a "Panic Sell-Off" Scenario. The most popular arguments that we get to see are
1) Long Term Investors - Be Patient - ignore noise - avoid looking at markets daily
2) Traders - Every stock has to have a SL. Else short Term bets will turn long investments unnecessarily
While both statements have their credibility - only experienced people can understand the nuances between them - the Unspoken truth. Many Retail traders are very new and very naive - very much afraid and have very less capital to play around. Their main priority is to Save Principal - Decent Returns, but most of them end up in Loss.
Look at the 4 Indices shown - Nifty 50, Small Cap, Mid Cap, Nifty Energy - there are other indices as well - which CRASHED together on same day - Dec 20, Jan 23.
Should we Book Profits ? Exit in minimal Loss ? Hold indefinitely ? - These are the most debated topics and many "Smart" Investors think they are trying to Outsmart the Market, but Maha Guru Drona (Market) Teaches them a Very Serious Lesson
On Dec 20 - My Portfolio Crashed to -1.35 Lakhs by 10:00 am and within 2 Hours it recovered to -25000 by 12:00 pm. If we sold-off in Panic on the sudden fall - we would have become Crazy to see the recovery in 2 hours
On Jan 23 - My Portfolio Crashed to -1.51 Lakhs by Day Close. Jan 24 - It recovered +1.24 Lakhs and Jan 25 (Today) it gave me an additional +1.40 Lakhs. I recovered in just 2 days + I received 60% Additional Profit without doing anything
Really ??? Without doing anything ??? - Well the Answer is NO. I did NOT try to Outsmart by Guru because I realized the fact that even the Mighty - All Powerful - Smartest - Favourite Disciple Arjuna did NOT try to Outsmart / Kill his Guru. He used his skills to Defend himself and his Troops from the attack of Drona (Market).
You need the Support & Blessing of Krishna (God) + support of the Chosen one (Drishtadyumna) to Kill the Guru. Please realize we are neither God - nor the Chosen one. So Don't Try to Outsmart...But be a Loyal Disciple to the Market and Try to understand its Flow and Play alongside
So - What do we need to do ?
The Answer lies in the Charts - as you can see - Despite the Massive Crash each day (Dec 20, Jan 23) - the Market rested just above their Support line.
Why Fear When Krishna's Support is Here - So we need to Check the Support and Resistances of Indices and also each of our Stocks in the Portfolio if any major supports are Broken and if the Next support is Near / Far. Exit your Stocks ONLY if the next Support is Far Away. Else, the Market would Rebound in no time - making you Crazy and pushing you to death
So the answer is to do Proper Homework - Not Blind Patience / Neither Panic Selling. Learn Technicals, Earn Good Wealth
Disclaimer:
Stocks-n-Trends is NOT a SEBI registered company. We do not provide Buy / Sell recommendations - rather we provide detailed analysis of how to review a chart, explain multi--timeframe views purely for Educational Purposes. We strongly suggest our followers to "Learn to Ride the Tide" and consult your Financial Advisors before taking any positions.
If you like our detailed analysis, please do rate us with your Likes, Boost and share your comments
-Team Stocks-n-Trends
Using psychology, large price moves, and volume to spot bottomsI saw a recent video where the host (Marc) was explaining that today winners were those that were able to understand what goes on in other people's brains, how they feel and what their goals are, find their breaking points, and see them coming.
In the US stock market the underlying economics got ignored and the price keeps going up. It goes, or went up, because of all the new investors joining and probably also because of the massive ETF market where they use tricks to minimize taxes, and money managers push to get as much AUM as possible which means they keep buying everything.
When do bottoms often form? When the herd gets broken. With Bitcoin they kept calling bottoms in 2018, the 11k bottom, 9k, 6k. Then they held the bag for months at 6k and kept hoping, time slowly taking its toll on their morale. When Bitcoin went to 3k they were devastated, in panic, and lost hope. And then it went up. They started building their hopes up "maybe I can get my money back", then were thrilled and started laughing at bears, and finally got euphoric and complacent "the bull market is back 100% confirmed, how are people still bearish? Bitcoin bull market is back it is a proven fact".
And then... It started a drawn up bear trend, the bear market was not over. When the price dropped below 7000 that was really the final hit. They went through so much and thought it was over. They just surrendered. Bitcoin saw a drop of more than 20% in 1 hour 3 times. In a single day the price dropped more than 40%, and on huge volume.
The market found their breaking point.
If the average Bitcoin investor had held on, then it would mean other bagholders would also have held on, and so there would not have been a "SELL EVERYTHING NOW" event, and the price would have continued its slow death grind down forever. They either sell at the bottom or the price slowly goes to zero. It is impossible for the average investor to win, resistance is futile.
Technically (on the chart) there are 2 things we can look at to find bottoms: violent selling and high volume.
For the volume it is a built-in indicator, and for the violent selling I made one in november 2018 when Bitcoin was close to its fake bottom:
So first of all I am happy that with the default setting it worked! 3000 in 2018 was not detected as bottom but march 2020 was!
Some examples on the daily chart. As always, it is better to not filter enough and then go manually check, than to filter too much and miss the move when it happens.
If you bought that 2015 bottom and actually held:
I'll speculate that this (only) works in the large presence of dumb money. It may work otherwise but better safe than sorry.
After the violent 1987 crash:
Of course this only works for those that have cash available, not underwater greedy fomo permabulls.
As a currency speculator that does little long term holds, little investing, there will always be available side cash for this.
Oh and you don't always get a nice obvious volume spike & clear bottom so this cannot be relied on alone (obviously...):
Little professionals trade it therefore Bitcoin is in the presence of dumb money so it works very well 👍
It might be the last time though, it already went mainstream and nothing lasts forever (except gold it literally lasts forever).
Picking bottoms looks good, it especially looks very attractive to novices, but it's not that great I think.
It's not THAT easy if you're not emotional (and it's totally impossible if you are, modulo luck) but it might be easier than the rest, I don't know actually, is it?
Still it's pretty nice, but not the only way to make money, I like looking for small chunks myself, works really well too:
Finally, this is a good way to spot bottoms, not all bottoms form this way, and not everything this will filter will be a bottom, the thinking part is still necessary, but very often will bottoms form when there is heavy selling (price drop + volume) in a deep bear market.
Price action & Psychology - Reversal after panic sellHello !
Key points :
Gap down : The stock gaps down probably because of bad news; opens at old support level
Panic selling : The bad news and the gap down triggers panic selling which explains the surge in volume
The stock finally settles on a previous support area
Last selling burst occurs and indecision rises as volume goes back up
Through this trade I want to emphasize the fact that one should be careful when evaluating the shadows (or wicks) of a candlestick . On this particular trade, there is no need to put the stop loss below the shadow, because it is the irrational behavior (fear) that formed it.
Watch out the area around 7.00 as it is an important congestion zone on a weekly chart (3 years - weekly). The final target would be the 8.00 area.
***Disclaimer : This is not an advice to buy the stock. You should never ever blindly follow a trader's idea without knowing exactly what he talks about.***
Thanks for reading and if you have suggestions or wanna discuss the idea, just leave a comment, I'll be happy to answer.