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Friday, April 27, 2012


This is an interesting setup for a coming move.  Check out the chart of the Bombay index.

We clearly have a contracting volatility pattern with both higher lows and lower highs.  This is going to break out one way or the other and should lead to a good move.  There are 2x funds INDL (long) and INDZ (short)
that could be used to play the move.  The pattern in those ETFs is slightly different in that INDZ has drifted up while INDL has drifted down.  Like both ETFs are anticipating a break out in their direction.  Therefore, I don't think they should be used to analyze the break out.  The index itself should be used.  If you do not have this index in your data feed you can look at it on Yahoo with this link.


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