The Nifty crossed 5715 today, a number last seen on January 18, 2008. We are at the current highs after 32 months. This has been quite a journey, from 6355 to 2240, then back to 5715 today, and, of course, who knows about tomorrow?
On CNBC today, I suggested buying 5600 October Puts. This is a game of patience, I said. The intermediate trend for the Nifty is now living on borrowed time.We are in the 14th week, while the maximum has been 15 weeks. A correction, whenever it comes about, will not be a friendly neighbourhood dip.
Traders should do both - ride the upward momentum, and, also buy these puts slowly, bit by bit on rallies.
What about investors? Investors should buy only on corrections. Remember, these dips come two to three times a year, at least.
Finally, find out about the Gold Super Cycle. Click here to read.