Monday, January 9, 2017

Market has gone berserk

I thought that the market would take a breather after the correction on 8 Jan 2017. But the market is making me work over-time. Hope the pay is fair ;-)

It seems the market has gone berserk. 


It is a war between the bears and bulls. And it seems the bulls are relentless - and restless - and winning at the moment.


The bulls gobbled up supply at 4970 and sliced through 5000. Today's candle suggests that 5200 has been taken care of! Next Supply is around 5240 (which will be tested this week) and then at 5368. Do they stand a chance!!!


Mentally, we need to be ready for correction/retracement.


But there seems to be opportunity in the air. These are a few options (among others) for us traders:

1. To take initial position in possible future bull moves. For example:
The previous Renata analysis failed - resulted in loss: http://imti77az.blogspot.com/2016/12/technical-analysis-of-renata-on-2-dec.html - - but it is again taking nice shape (which I hope to write on later).

Curious minds could find many more in this “crude” analysis: http://imti77az.blogspot.com/2017/01/correlation-does-not-imply-causation.html

2. Break-out trading: Take higher risks by buying stocks that have just broken a major Resistance - like:

3. To take an early position before break-out as a "possible" break out could give "good" profits. I explained this tactic in this article: http://imti77az.blogspot.com/2016/12/technical-analysis-of-bengalwtl-part.html 

This tactic allows one to take an early position before break-out. If it breaks, then one gets profit and if it fails, one can get out with hardly any loss. You could check these stocks:



4. I hardly enter into the middle of a bull run. As I might be the last fool holding the stock when everyone has sold out. But if you are highly confident, then you could check these:
Confidence Cement: http://imti77az.blogspot.com/2016/11/technical-analysis-of-confidence-cement.html
GPH Ispat: http://imti77az.blogspot.com/2016/12/technical-analysis-of-gph-ispat-on-9.html

(Later) I will write about ICB and Rangpur Foundry, if they retrace and give a chance to enter.


There were a few break outs in the last two days - I hope to write about them soon.

Before I conclude here, I would like to highlight that - open a position that goes with your risk appetite and your personality. I always prefer risk averse positioning - but currently the market is not providing many such opportunities.

Horses for courses then . . . Best wishes . . .

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