Longest consolidation phase.

Nifty has entered it's 9th day of consolidation on the hourly charts. By far the largest since Dec 2009, when it lasted for 7 trading days. These types of broad ranges with gaps on the opposite of the previous days closing does not come without reason. 

Analyst reposts yesterday on CNBC showed mixed response. As market started climbing up, one analyst came in and said, 'NIFTY is poised for 6300'. But when there was a small slide towards closing hours another analyst comes in with his view, 'Market will touch 5000, before any bullish moves.'

When analysts themselves can differ in their views, it is a clear sign that there is no informed sources playing the markets now. It is just swinging on global cues. Volumes have shown considerable fall. There has been below average volumes for 3 weeks continuously in a row immediately after budget announcement.

Japan's natural disaster has added more fuel to the prevailing confusion.Japan lost it's No. 2 position on the Global economic rankings to China a few weeks back and now it follows with yet another bigger blow. But, as it is said, Adversity breeds diversity, man needs some negative needs to prop up his inner strengths.

The previous time Japan had its worst when World War II collapsed their economy, its patriotic citizens just came out in a blaze to get their economy to the developed country status from a developing nation. This astronomical growth always had kept USA, the financial behemoth in worries both in technological development as well as on greatly advanced policies that the Japanese followed.

Even now, this disaster coupled with their downgrading will make them fight back with vengeance. Maybe an even more powerful strike to reach the Numero Uno status very soon. Let's pray for those poor souls who lost their life's, most important is the pain that they have to undergo in this process of evolutionary elimination. The nuclear disasters, one after the another, though some are less dangerous in magnitude are giving hints to mankind that we are stretching too thin in damaging the nature around us for luxury and laziness.

If we do not take corrective measures, we may have to face more severe natural disasters in the coming years. Maybe the present older generation may leave this world scot free, but we should keep in mind that what we are leaving back to our own family members who are going to take the realms from our hands is a very a poor state of affairs and all that we are teaching them with our extravagant life styles are also not good for their well being.

There has literally no trades in the swing section from the beginning of this month, while the trend following accounts have been massacred of all the gains made in the past 2 months in just 15 days of market activity. Those traders using very strict position sizing methods could only has kept their losses smaller is this disturbed time of the markets. Traders please scale down risks, keep positions smaller, you almost always get an opportunity to make it big when the going is good. Market is abundant with opportunities.