[I have returned from a week long holiday. I thought I will be able to keep my blog updated during the holiday, but it was not possible.]
The Nifty joined world markets in a correction of the up move. While the media makes it sound like a catastrophe, the decline is not unusual. All markets correct, we just do not know 'when'.
Whenever a correction begins, two questions come up: (a) How can we say this is a correction and not a reversal of the trend, and, (b) If this is a correction, then how do we determine its end? The end of a correction is the start of the original trend, therefore a perfect entry setup.
I will attempt to answer these questions in subsequent posts.