Readers of this blog must have noticed that I have been skeptical about the upmove - my thinking was that I could not see what reason could there be for the market to go through 4700.
But the market has spoken. It has broken through 4700, Regardless of the reasons why it should not cross 4700 -- NSE PE is at 22, not cheap - or the reasons why it should go above 4700 - lot of cash on the side line - the price action is that the 4700-4750 has been broken through. It will be confirmed if on the next pull back the last swing low 4570 holds and we should all keep that in mind.
As traders, we must follow the market. So, either enter now or at the first pull back ( keep in mind that the pull back could be very short!!).
For investor, however the challenges are somewhat different. One challenge is not to chase price but wait patiently for a pullback, the other challenge is to preserve capital when the pendulum swings too far - the best way to do that is through asset allocation. Rebalacning asset allocation is an absolute must as we head into somewhat uncharted territory.
If you have any comments please write to me at stockmarket.methods.in.madness@gmail.com
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Disclaimer: The above analysis is just that - my analysis. If you choose to trade on the basis of this analysis, you will be solely responsible for the outcome of the trade - profit or loss. Please keep in mind that trading and in particular day trading is not for the novice and there is significant risk of loss of capital in trading
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