This is a pre-market post (7:54 AM) on Monday. I received many comments on the Saturday post where I suggested that the Nifty could touch 4650 now, and, 5200 maybe. Some comments have been published.
The underlying theme in most comments is: : "This is a suckers rally". "The Nifty will face resistance ". There is even a suggestion to go short at higher levels.
In my humble opinion, this is the wrong approach to trading.
Never fight the trend. An individual trader may not be in tune with the current momentum. Often, the best traders devlop mental blocks. This is always possible. But, going against the momentum or trend is almost like financial suicide.
What is the evidence ? The Nifty is likely to see a big rally today. Probably touch 4600 easily. This is not just the Nuclear Deal, today morning, the USA has nationalised two of its housing finance companies. This news is giving a 4% rally all over Asia.
But, the reasons for the rally are not important. The evidence is that the market will rally. We should let the market eventually decide what it wants to do. Meanwhile, either we go with the flow (which is Up) or stay away. Going short is not a good idea at all.