Market is close to all time high and everyone seems to be happy due to festive season. Does it mean we shall expect a massive rally from this point on-wards!!! OR Will this be repeat of 2010 Diwali!!! What do we need to watch for?
- McClellan Index continues to rise suggesting more and more stocks are advancing than declining which is a good sign
- Nifty is well above MA(100) BUT MA(100) is still below MA(200) which is a bit of a concern, however if Nifty continues to rise eventually MA(100) will move above MA(200)
What does it mean for our Investments?
- Mutual Funds - If invested in equities then stay put but be ready to pull the plug. If invested in debt/bond funds then keep an eye on them. If invested in CDs or liquid funds then wait for next opportunity as entering markets now is a bit risky.
- Stocks - ONLY invest in convincing patterns and DO NOT forget to have STOP limit in place.
Market appears to be bullish but be cautious...