Jackpot Trade No.3

07-09-2012

Jackpot Trade No.1 has ended and Jackpot Trade no.3 has begun.
Stock is L & T and target is the channel shown below:

First target should be 1500.
Stop loss 1309.

Larger channel is this one:

Contra-Probability:

Currently,the contra-probability's chances are very small.But must be borne in mind:

C has been seen as a 5 wave form:

(i)=1482-1430=52

(ii)=1430-1472=42
(iii)=1472-1324=148
(iv)=1324-1372=48(ending at 1369.85)
(v) 1369.85-1309=60

However,there is still a remote chance of (iv) still being in play as:

(a)=1324-1372(ending at 1369.85)=48

(b)=1369.85-1309=60(125%)

(c)=1309-1374*=65

And in such a scenario,we may come down again as (v).

And if this happens,it would be a golden opportunity to go long at lower levels.

For further understanding on L & T please see the link Case Study of L & T

EOD 13-09-2012
I think it is right time to book profits and go long at dips again. More aggressive players can wait for negative divergence to squre off their longs.

EOD 17-09-2012
We have come to the end of this Jackpot Trade now.
If one compares the charts posted on 7-09-2012, with the charts below,one can very easily understand why I am saying this.

The trendline test;
Long tail at the end of trend;
RSI overbot--all combine to give me a call to end the long call.
But I would not advise to go short now.
Why?
This move has been very fast & furious and though I had mentioned about C being truncated(it ended at 1309 while A had ended at 1308) and the subsequent upmove had to be swift--but this swiftness has caught me too by surprise.And we may see the blue TL getting pierced and red TL getting tested.

So ends our Jackpot Trade No.3