Trade setup for 05th October



 Usually, Oct-Nov is a green month as it is a month of festivals and earnings. Will 2021 be an exception??

Yesterday Facebook, WhatsApp and Instagram were down for many users. There was a huge outrage by people for this outage. Facebook told that the regular maintenance activity caused it and that they have fixed it now. Facebook had the worst outage after 2008. It's surprising how there was no disaster plan in place for such a big app. All 3 apps were impacted. That was even more difficult to believe. I don't think it will be just a regular maintenance goof up. Something serious must have happened. Regular maintenance goof-up will not take all 3 apps down. 

A new whistleblower has come out and told that they have evidence that Facebook rigged user numbers for higher numbers. Yesterday FB fell 5%. Not sure if this has anything to do with outage etc

Yesterday we had a massive rally in the market. Now things are getting volatile. Till the day before yesterday, it looked like the markets would fall. Yesterday's rally and vix collapse gave some hope that the fall was just profit booking and the upside rally may continue. But things changed in 4 hrs after markets closed. The US markets opened in red and now it looks like the weakness is here to stay. Today the vix will shoot up again.

Still, it is not time to short. As I told I will wait for 20DMA to be broken convincingly. Anything can happen. Today evening if the US goes to green then you can expect the recovery again. Markets are volatile at the moment. The best part is that the premiums are pretty decent and these moves can be managed. 

One more property developer company called fantasia has missed the payment in China. After Evergrand this is the second company. Let's see if this will be only in China or other countries as well.

We have the earnings which will begin in some time. We will have TCS, Infy which will lead. Let's see if this earning season will lead the markets down or will it take it beyond 18k.

In the US, there is a huge sell-off in the techs. Yesterday, Apple, FB, tesla all fell around 5% due to the huge selling. 

SRK's son is still in NCB custody for a drug case. The entire world is looking for this event. All news channels are focusing only on this. 🤣🤣🤣🤣

"No time to die" has got a good response in the theatres. So this might boost the new releases which were pending for a long time. By this year-end, you can expect a lot more big-budget movies to come. 

Gold is rising, Crude is rising which means that the money is moving to safe havens. Now you do the math whether the markets will fall or rise.

Opec+ have told that they will not produce oil at high rate and they will increase it gradually. This caused the crude prise to surge.

MY TRADES

  1. The PE backspread which I had executed will be in good profit today. This was exactly what I was waiting for and this is what I told in the youtube video as well. Today I will be coming out with another video regarding this. You can check and learn how you can make the most of that strategy.
  2. I had executed ratio spreads in RIL, Mindtree, bajajfinance. Today most of them will be in profit.
  3. Today I will be selling PE in the weekly expiry at the opening as I have some margins remaining.
INTERNATIONAL MARKETS
  1. Dow lost 300+ points, Nasdaq also lost more than 300+ points. S&P is down by 5% from its all-time high.
  2. Even Europe closed in the red. The major indices lost around 0.5-1% 
  3. Today the Asian markets are in the red. Japan down more than 3%. China is on a holiday. Hongkong down. SGX is down by more than 125 points.
CRUDE AND $
  1. Crude is at $81.5
  2. $ is at Rs 74.5


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