As we are not aware of the exact credit to be cleared or credit that has been cleared....one thing to keep in mind is that credit clearing doesn't happen only when the Market is red (it's probbaly one of the reasons for the market to go down for sure) it happens when it's green as well (Please understand this as some posts seem to say knowing or unknowingly eg : market will turn red as credit clearing will begin etc) everyday credit is been cleared even today some would have been cleared.
also new credit would have been given as well don't for get this over all though most brokers are clearing their excess debt before March 31st there is new debt that they give out (they need to earn as well ) New debt too will have to be cleared by 31st June ...but then again SEC might extend the deadline further or they might wants the brokers to extend credit after all .....if the 31st June deadline is adhered to old debt plus new debt given (brokers will continue to give 50% will have to be cleared by the 31st Of June)
What I feel is market will consolidate and if there is excess debt remaining before March end with a few red days it will post gains begining April and then be dull until end April and rebound in May.... then we need to watch to see how the June deadline takes shape ....
THere are still good counters to be picked up RCL/LOLC/ Gran/TAFL/BFL/TKYO/DIST/LCEY/KAPI/LFIN/SAMP ..... LHCL will continue to have play as 62 and over is the selling price (I thought it will take longer to regain lost ground but I was wrong)
As i said in my previous post the trick is to get in to stocks that will regain lost ground in the shortest possible time frame ....some that lost ground will probably take longer to regain lost ground as they may have been over bought Identify low PER levels with strong growth potential... look for companies with strong fundementals with low debt strong balance sheet....do this and everyone will be a winner no matter how much of Debt clearing or Middle east issues there are ...... try to stick with no debt as then you can hold for longer periods......How many loser there would have been who panicked and sold ( My poerfolio loss was 144000 it went to 150000 at one time...today it went down to 90000 imagine if I paniced and sold ) How many Winners would have been there who bought during the last few days with excess cash or even on credit ...... Please bear in Mind that this is post war Sri Lanka (Unless a natural disaster takes place) we are on a very good footing do not miss this golden opportunity ...stay calm and weather the storm and you will benifit
Happy Hunting !