In our April 10th Chart of The Week, as well as in our Member's Only Conference Call on Thursday, we presented the question of whether the bearish momentum divergences we were seeing in the Nifty 50 and other major indexes would matter or if the market would brush them off and continue higher.

Well, we finally got our answer.

During yesterday's Members-Only Conference Call we outlined a trade idea that falls into the low probability, high reward/risk category.

In this post I want to share that idea and explain why it's the type of trade we'll take every day of the week.

Most of the Equally-Weighted Sector Indexes we track have been underperforming their Cap-Weighted counterparts for the last 16 months, however, we are starting to see some signs that a counter-trend rally in three sectors may be brewing.

Most of the stocks we've liked on the long side have either been stopped out or are well on their way to our upside objectives. While we're remaining patient and think many stocks still need to consolidate their recent gains, that doesn't mean there aren't any opportunities right now.

In this post I'm going to outline the stocks where our risk is very well-defined and reward/risk is skewed in our favor. That way we can participate in any potential upside if the market continues higher, while also limiting our downside should it succumb to the near-term weakness we've been on watch for.

Most of the Commodities and Currencies we track continue to lack a long-term trend, but I want to outline a few charts in the space that are notable right now.

Long-term, we're bullish Equities in India and around the world, but are remaining patient in the near-term due to momentum and breadth divergences we've been seeing across major indexes, sectors, and individual names. It's happening in the US too.

We've been writing about this for a few weeks, so I wanted to follow up today and show the progression of that thesis.

Last week's Chart of The Week discussed the "One More High" type setup we often see  prior to price consolidations or pullbacks, providing some context around why we continue to remain structurally bullish, but not very aggressive in the short-term.

Friday we got new Monthly Candlesticks, so this post will outline a few of the major changes since last month.

We've been erring on the long side of stocks for the last 6 weeks, taking trades where the reward/risk is heavily skewed in our favor, but are still seeing mixed evidence regarding the market's ability to make new highs in the short-term.

We've been writing about the slow improvement in price, momentum, and breadth over the last few months, leading us to err on the long side of stocks. With that said, we continue to see signals that Equities are not out of the woods just yet.

This is going to be a quick post looking at the potential failed breakdown that can lead to Reliance Communications doubling in a few months.