As I write this post at 8:57 in the morning, Lehman brothers is expected to file for bankruptcy, S&P Futures are down almost 3% and the Nifty is trading lower by 130 points at 4085, in Singapore.
There is a temptation to buy. After all, how much lower can it get ? Remember, this is dangerous thinking. What stops the Nifty from breaking below 3800, and finally reaching 3200 or even 2650 ? I am not suggesting this will happen. My point is: never go against the market. If this market is ready to move up, then there will be signs : support will emerge, momentum will slowly change in favor of the bulls. The correct way to think this is: At 4000 levels, the Market is attarctive, therefore I will buy whenever there are signs of favorable momentum.
Any given level is NOT a buying or selling opportunity. Market action at that level creates the opportunity.