Initial Themes From September's Monthly Candles

First, let's start with the Nifty Small-Cap 100, which spent the month consolidating gains below resistance near 6,000-6,100. September was a month of churning for a lot of stocks, commodities, rates, and forex pairs we track, so that is theme #1.

Click on chart to enlarge view. 

The next thing we saw was the weakest stocks in the market breaking down instead of continuing to churn sideways.

Over the last few months, the broader market has been strong, so even the worst stocks could maintain a bid. But since late August and throughout September, we've seen a shift in the market and are now seeing stocks participating in both directions as the major indices trade sideways.

Here's a good example of that in Coal India, which held above 125 since March and is now finally breaking to the downside.

And on the other side of that argument, we're seeing continued strength in leaders like Infosys, which made new all-time highs and closed near the highs of the month.

A lot of churning across the board in September, which reaffirms our call to be extremely selective in terms of the long/shorts we put on, sticking with the strongest trends across all markets.

As a reminder, members can check out the fully updated monthly chartbook here: September Monthly Candlestick Chartbook.

And make sure to register for Monday's live strategy session and send in your questions ahead of time so we can address them in the deck!

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Thanks for reading and please let us know if you have any questions!

Allstarcharts Team