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Guys please be careful. MPI and ASI showing sell signals on MACD, TEMA, VWA and candlesticks. This was accompanied by higher than normal volumes. I do agree that the indices are not perfect but there are other signs.
Just remember that in the recent past Fundamentally strong market leaders have started dropping and we seem to be going behind manipulated stocks at crazy PERs. These are signs of an impending correction (to put it softly). Also the number of shares reaching 52wk highs seems to be dropping. These are all ominous signs.
Do not get into the margin/ debt as you may be wiped out in a crash (even if it is short term). At least if you are in with your cash you can hold on. If you are in the margin and T+5 comes and you are force sold, you may be wiped out.
If you have made a profit - take some money out. It might cushion you for a while - besides you would have extra money to buy in the event of a drop - this is what the rich do.
Make sure that you have a written down stop loss which you stick to. Risk only 1-2% of your capital in any one trade.
Think about the long and medium term trends in the overall market before you buy a share for the short term. There is such a thing as wind below your wings. When you go for a share, do not buy falling knives thinking that the trend will reverse at your point of entry. (There is no short selling in the CSE market and therefore no reason for Elliot waves to apply when prices are in a downtrend beyond support levels.) Over sold indicators too do not apply when there is no short selling. Remember that those who buy on a dip laugh every time in a bull market until the crash comes!
Be careful when the trend suddenly changes after a prolonged drop - there is such a thing called 'a dead cat bounce'. Manipulators who buy at the bottom when the share seems oversold, push the price up and off load it again on poor retailers. Didn't we see this recently with Gran, BFL, TAFL, BRWN, CFIN. Look for at least a recovery from a double bottom before you enter such a share.
There were always obvious reasons for market drops in the recent past - debt clearance/ bandwidths/ T+5 etc. There is no real explicable and reversible reason now. There is the risk that the market has run out of steam in the short to medium term.
I would be the happiest if another bull run starts, however please be careful - it is your hard earned money. If you lose your capital in a bear market - you have no money left when the bull run starts. This would be familiar to those who were in the market before.
This is just my impression on the market. I have not quoted from any source. Please make your decisions after thinking things over. Please do not consider me an authority or one with inside information.
Just remember that in the recent past Fundamentally strong market leaders have started dropping and we seem to be going behind manipulated stocks at crazy PERs. These are signs of an impending correction (to put it softly). Also the number of shares reaching 52wk highs seems to be dropping. These are all ominous signs.
Do not get into the margin/ debt as you may be wiped out in a crash (even if it is short term). At least if you are in with your cash you can hold on. If you are in the margin and T+5 comes and you are force sold, you may be wiped out.
If you have made a profit - take some money out. It might cushion you for a while - besides you would have extra money to buy in the event of a drop - this is what the rich do.
Make sure that you have a written down stop loss which you stick to. Risk only 1-2% of your capital in any one trade.
Think about the long and medium term trends in the overall market before you buy a share for the short term. There is such a thing as wind below your wings. When you go for a share, do not buy falling knives thinking that the trend will reverse at your point of entry. (There is no short selling in the CSE market and therefore no reason for Elliot waves to apply when prices are in a downtrend beyond support levels.) Over sold indicators too do not apply when there is no short selling. Remember that those who buy on a dip laugh every time in a bull market until the crash comes!
Be careful when the trend suddenly changes after a prolonged drop - there is such a thing called 'a dead cat bounce'. Manipulators who buy at the bottom when the share seems oversold, push the price up and off load it again on poor retailers. Didn't we see this recently with Gran, BFL, TAFL, BRWN, CFIN. Look for at least a recovery from a double bottom before you enter such a share.
There were always obvious reasons for market drops in the recent past - debt clearance/ bandwidths/ T+5 etc. There is no real explicable and reversible reason now. There is the risk that the market has run out of steam in the short to medium term.
I would be the happiest if another bull run starts, however please be careful - it is your hard earned money. If you lose your capital in a bear market - you have no money left when the bull run starts. This would be familiar to those who were in the market before.
This is just my impression on the market. I have not quoted from any source. Please make your decisions after thinking things over. Please do not consider me an authority or one with inside information.
Last edited by prasrod on Thu Jun 16, 2011 1:43 am; edited 3 times in total (Reason for editing : To clarify matters more)
