- Is this bounce a surprise to us?
- Didn't we expected this!!!
- Are we witnessing similar pattern which happened during early 2011?
What does it mean for our Investments?
- Mutual Funds - If you are still invested in the markets then use this bounce to exit equity markets, if you are already in cash or liquid funds then stay put and wait for next opportunity. If you are invested in debt/bond funds then do keep them on your watch list as current times are NOT good for stocks and bonds.
- Stocks - ONLY invest in very convincing patterns and always have a STOP LIMIT in place. Take partial profits on open positions.
Market remains vulnerable to further downside...