Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

S&P500 – Over Heated News Driven Markets

37 sec read

Markets are celebrating the US Inflation Numbers. US Inflation Rate is at 7.75%, compared to 8.20% last month and 6.22% last year. And the Expectation is a slower pace of FED Interest rate hike in the near future. And Post the Inflation Numbers S&P 500 responded strongly on the positive side and up by 5.54% approximately.

However, if you read the emotions of the participants is shows that laggard traders are chasing the late momentum in the markets. Usually, laggard momentum traders are the last ones to enter the market where the party is about to get over and the music is about to stop. And very rarely the laggards traders do get benefits out of the momentum.

ES Mini December Futures – Market Profile Charts

And Extreme Indication signals indicate that momentum is at the extreme on Thursday’s closing which brings possible immediate pullback odds. Overall this sudden news-based rally is a questionable one.

So what do you think? Will this rally fizzle out faster than anticipated or will sustain and create a new bull market?

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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