- What is the basis of above statement? - Check our market period between 2003 to 2005
- That is just one instance and we cannot conclude based on one case! - Alright, go and check Dow Jones Industrial period between 1983-1985
- BUT who said we are in a MEGA BULL market? - Now that's a million dollar question, we will ONLY know it in the hind sight and by then the opportunity is lost
- What if market continues to rise without a shakeout! - It is always a possibility, however at some point we shall get the shakeout no matter what! Its only matter of time...
What does it mean for our Investments?
- Mutual Funds - Stay put if invested in equities but DO NOT open NEW positions unless market can get above MA(50) line. No need to stop SIP as we do not have trend reversal confirmation. If in cash/liquid funds/FDs then stay put and wait for the next low risk opportunity. If market reverses and gets above WMA(10) on weekly chart then that would signal low risk entry.
- Stocks - ONLY invest in strong patterns and DO NOT forget to have STOP LIMIT for all open positions. Check out our trade size calculator to manage risk on individual positions.
Market appears stuck in a range for now...