Today we had a 2.7% down day in Nifty. On Feb 22nd, there were many big stocks dropped like rock and that was the start of our Short trading. Looking at todays action, we had similar negative market breadth but lower than Feb 22 dollar-volume selling. That shows that today there were many mid cap stocks dropped big time. This is a systematic cycle selling and I believe, by tomorrow many investors just want to take their profit and that will force this market into rapid selling spree and we may loose this years gain in next week of two if we don't get demand back into the market which I hardly believe happen in next couple of days.
Today and Feb 22nd shows highest selling of last 1 year. So, yes this is major deal for the market. If you holding onto you long positions, you need
There is a another point to this what if market reverses from here and I would be left alone. Yes that is a valid point and if you think like that than in this kind of a market you may loose most of your profit. The better suggestion would be to invest in funds.
Overbought-oversold ratio today turned major declining area. That shows that many stocks are entering into oversold area and we may see follow through tomorrow in Nifty and in general market.
This is the time to look for good shorting position......
Yes in order to be successfull in this market you have to trade both ways........
I strongly believe that analyzing the market on daily basis will give us an good advantage. If we see strong demand coming into the market, we will cover our short position until then let it ride.......
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