Trade setup for 16th Feb

 Once upon a time, Trump used to manipulate the markets. Now the communist leader Mr Putin has taken over. The day before yesterday, the US told that Russia can invade anytime. As soon as this happened, crude shot up and our markets fell more than 500 points. Yesterday the US told that Russia is pulling back its troops after Biden spoke to Russia. They also told that satellite images have also confirmed that. Yesterday there was a fantastic rally and markets recovered the entire day before yesterday fall. Not sure if Russia attacked Ukraine or Indian markets. Many traders have lost drastically because of this. But FII has still sold. I thought they would have bought it in yesterday session. 

As you see, we are almost at the same point where we started the month. It has been more than 10 trading sessions and we have gone nowhere but there was huge huge volatility. 

The US markets also closed in the green after falling for 3 days consecutively. 

Oil is at $93 and has fallen after tensions were eased. 

I did expect the tension to ease. Usually, attacks happen in surprise. You might remember when we did a surgical strike on Pakistan, we did not give any signal to anyone. One night we just crossed the borders and attacked. In the past, all kinds of attacks are in a similar fashion. The tension between Russia and Ukraine is happening for a long time and NATO which is much more powerful than Russia was alert. Putin being a KGB agent is not a fool to attack. That will be a suicide mission for him. It was obvious that the situation would ease with dialogues.

 But I did not have the guts to invest more after the day before yesterday's fall. But I did not close any of my loss trades as I expected 200 DMA to be protected which is what happened. I would have closed all in loss if 200 DMA was taken out. There was a wonderful bounce that happened at 200 DMA. Now 200 DMA will be strong support for the entire series. I am blindly selling PE below that.


  1. Yesterday in my tweet I did suggest a trade where 16700PE was trading at 10-12rs. I have sold them aggressively.
  2. Now, most of my trades are in a wonderful position as I am sitting with wonderful profit. Now I will be doing aggressive adjustments to increase the profit. We traders love volatility as that is the fire for our profit. But sometimes too much volatility will also be a problem.
  3. Today I will be selling PE of many companies as I am not expecting the markets to fall further.
  1. Now all markets are stable. The US in green, Asia in green. 
  2. SGX is almost flat. I am not expecting a huge move as we had a roller coaster in the last 2 days.
  1. Yesterday they sold for 2000+cr and DII bought for 4000cr. Now you know why the rally happened.