In ideal scenario this would be perfect BUY signal but what constitutes ideal scenario?
Only if Nifty was crossing MA(100) upwards while McClellan Index crosses EMA(59) upwards eventually crossing MA(100) as well.
In beginning of this year, we wrote an article on "Where is Market headed in 2013" and one needs to look at longer term market. At the time, based on available information and charts, it seemed like market may put in a top by mid to end of this year. It looks like market is on track for it to happen as 2014 is election year with lot of uncertainty.
What does it mean for our Investments?
- Mutual Funds - Stay invested until we see signs of market trend change, initiating new positions is risky at this junction.
- Stocks - Invest in right patterns but do not forget STOP LIMIT.
Market continues to be bullish for now...