It's been awhile since I last talked about market clarity I longed for; the good news is it has finally arrived, but unfortunately the news itself is bad!
Taking cue from the technical readings of the market, the signals flashed actually point to...more market weakness over the medium to long term, amidst an on-going technical rebound now.
This concludes that the current technical rebound represents a mere dead cat bounce...any precipitating end to this strength should be taken as opportunity to ditch stocks by maintaining a position where one is comfortable holding onto, even in the event of heavy correction or crash (this however is definitely not my style of trading as readers can comprehend from the 100% cash position I have right now; nonetheless, this is far too common a practice for many investors in general).
The price to pay for making the mistake of greed is way outweighing the blunder of fear in my opinion. The last check of my estimated investor sentiment cycle was dated 7 Feb 2011...
I'm convinced still with my projection then, the fast-forwarded cycle now will look like this, ~6 months after...
Taking cue from the technical readings of the market, the signals flashed actually point to...more market weakness over the medium to long term, amidst an on-going technical rebound now.
This concludes that the current technical rebound represents a mere dead cat bounce...any precipitating end to this strength should be taken as opportunity to ditch stocks by maintaining a position where one is comfortable holding onto, even in the event of heavy correction or crash (this however is definitely not my style of trading as readers can comprehend from the 100% cash position I have right now; nonetheless, this is far too common a practice for many investors in general).
The price to pay for making the mistake of greed is way outweighing the blunder of fear in my opinion. The last check of my estimated investor sentiment cycle was dated 7 Feb 2011...
Investors will learn that at times a dull "investment" like cash in FDs can be one of the best strategies...performing just the basic but least appreciated act of preserving capital.
Honestly, the floodgate for a bear market is wide open now, only if the bear capitalises on it and takes full advantage..
0 comments:
Post a Comment