iCharts Discussions

SwingTrader · Posted: Tue Feb 26, 2013 11:11 am Post subject:

NSE Market Breadth

Breadth is down in the dumps. Long term breadth still holding up but is deteriorating fast. Current market action is not showing any signs of a turnaround. Will be looking for positive price action before thinking about adding to longs.

I have cut down on weak long positions that I am holding. The rest are hedged with NF futures partially. I also write actively managed OTM put & call credit spreads against the long positions as part of the hedging strategy (I do this each and every month irrespective of the market trend). These spreads have performed extremely well as market has been going sideways and then down recently.

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

ST, medium term breadth is falttening out at -100% while short term one has already reversed. I guess it may still take a few months for a good recovery. By that time long term one may come to zero and then reverse.

SwingTrader · Posted: Tue Feb 26, 2013 12:18 pm Post subject: