iCharts Discussions

bpsingh · White Belt Joined: 16 May 2008 Posts: 54

Baltic Index (BDI) cannot be used in practical manner for trading Indian Market (except shipping sector). The BDI was 1930 on 12/12/2011 and gradually dropped to 647 on 3/2/2012. In the same period, Nifty rose from its lows of 4700-4800 range to 5400-5500 range. There is no meaningful relationship between BDI and Nifty charts. We will just confuse and tie-up ourselves in knots trying to trade nifty based on BDI as leading indicator. BDI is far less an indicator than US stock indices for practical purpose of trading nifty. Past 1-yr comparison chart attached.

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Singh, BDI hardly depicts Indian economic situation, our international trade being so small. My mention of it was general in nature because it indicates change in goods shipments well before quarterly results/data are out.

By the way, with world economies in doldrums, BDI is a god contra indicator because it means risk-off monies will come to India and other emerging markets. Smile

apka · Black Belt Joined: 13 Dec 2011 Posts: 6137

interesting point vinay, i never thought of BDI in that sense.

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Neither did I!

SwingTrader · Posted: Sun Nov 18, 2012 9:46 am Post subject:

I am not sure what are your trading timeframes but for my type of trading the macro economic indicators are worthless. They may be useful for fund managers but for traders like me they are just not-so-useful stats.

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

true, I agree

SwingTrader · Posted: Mon Nov 19, 2012 10:30 pm Post subject:

Breadth cycle chart with long, medium & short term cycles.

SwingTrader · Posted: Wed Nov 21, 2012 9:08 am Post subject:

Breadth continues to deteriorate, correction may not be over yet.

Vevensa · White Belt Joined: 12 Jul 2011 Posts: 59

Hello ST,
What is your definition for short/medium/long-term? I mean how many days/weeks or months?
Thanks.

SwingTrader · Posted: Wed Nov 21, 2012 9:22 pm Post subject:

Vevensa · White Belt Joined: 12 Jul 2011 Posts: 59

SwingTrader · Posted: Wed Nov 21, 2012 9:45 pm Post subject:

Today's breadth chart - Medium vs Short

The breadth indicates some more time left for short/medium term bottom. Of course, that is just an indication. If market continues to rise in the meantime, the decision point for me is going to be the 16th Nov high. I will see what to do with my trade if market can sustain above it. Before that 5625 is a major resistance too, NF needs to clear and stay above it before it can try and get to 16th Nov high of 5664.

p_wangdu · White Belt Joined: 30 Apr 2012 Posts: 126

SwingTrader · Posted: Wed Nov 21, 2012 10:19 pm Post subject:

SwingTrader · Posted: Mon Nov 26, 2012 9:11 am Post subject:

Short, medium & long term breadth are heading down. Short-term almost at the lows around -80%. I still think there is some downside left. But a move above 5670 on NF could turn things around for the short-term and if medium term & long term too turn up after that then maybe things could turn up for quite a while.

On Friday I rolled over my 5700 puts to Dec expiry, don't want to hold Nov puts in the expiry week.