When a major reversal is taking place, Oversold markets may remain oversold for more time too.
Trying to play the bounce against the main trend will make you miss the major moves down.
Once you let go off your positions, trying to get back in will be harder because the entry level may have looked relatively lower yesterday but you would wish you held on to that for tomorrow it gets lower.
A major trend line break brings in more selling from even the medium term players.
Auto stocks are starting to fall in a big way...Maruti, hero Honda, M&M..
If the previous top @ 4727-4744 arrests this fall temporarily, you may have a short term bounce from oversold levels.
Playing the bounce is a high risk game as fast falling markets tend to extend their waves..
A strategy is being developed for a possible relief rally that may develop in a day or two. It is highly possible that I am 2 days early with this strategy.
Those who are holding Shorts should trail it down till an exhaustion is seen in the prices in the short term.Some stocks strategy is posted in "STOCKWEALTH" blog.
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