Markets seldom move in straight line, hence after a sell-off there is always a bounce. The KEY is to understand how strong the bounce will be and Is it for real!!! As we mentioned earlier, we might be witnessing topping pattern hence we do expect a bounce up to 5800 level which might be our last chance to exit long term positions.
What does this mean for our Investments?
- Mutual Funds - If you are still invested then stay put but do not initiate new positions at this time.
- Stocks - Invest ONLY in convincing patterns else stay in cash. Take partial profits on open positions and always have STOP LIMIT in place.
Market continues to remain in correction phase...