- McClellan Index continues to drop further suggesting more number of stocks are declining while less number of stocks are advancing, NOT a good healthy sign of a rising market
- Nifty is in the vicinity of MA(100) and MA(200) and it appears as if MA(100) may cross over MA(200) which is NOT a good sign either
What does it mean for our investments?
- Mutual Funds - If you are still invested in the market then enjoy the bounce until it lasts as this might be the last chance to get out. If you are already invested in debt/bond funds then no worries, stay put and wait for market to settle and provide a clear direction. If you are in cash then you may want to park your money in liquid funds until you make your decision.
- Stocks - It might be wise to stay in cash, take partial gains on open position while have strict STOP LIMIT on remaining positions. No need to invest in turbulent times and capital preservation should be our TOP priority,
Market continues to remain under pressure, hence be cautious...