- Market is back above MA(100)
- MA(100) appears to be almost crossing MA(200) and most importantly is sloping downwards
- McClellan Summation Index continues to drop further
- Mutual Funds - If still invested in equity funds then enjoy the bounce but be prepared to exit as soon as market drops below MA(100). If already out of market and in debt funds then nothing to worry, stay put as market is very volatile and no need to rush into any decision. If NOT sure what to do and not invested in any funds yet then you may want to park your capital in liquid funds until we get clear direction from the market.
- Stocks - Take partial gains on open positions and have strict STOP LIMIT or trailing STOP on remaining position. Entering new positions might be risky unless the pattern is very convincing, however do not forget to have STOP LIMIT in place. In volatile times, its better to remain in cash.
Market not out of woods and hence be cautious...