Thursday, August 11, 2011

The cat bounce is on

My last post explained that a dead cat bounce is not a one day wonder. Today's sgx nifty behavior is interesting. After hitting a low of 5078, it is now trading at 5139 which proves my point. Just as markets can go down more than we expect, they also rally, often more than expected.

How do you trade this? Have a view - up or down. take a position and stick to it. the volatility will ensure that you will see a profit soon enough, although your position may see a lot of turbulence in between.

4 comments:

Shazia said...

Your observation was proven right.. Although the US markets tanked overnight, the bounce was not affected much.
How long do you think a bounce could carry on?
I mean, is there something by which it can be calculated? Or just a swing target of an upswing could be one target ( irrespective of how many days? One or many)Your observation was proven right.. Although the US markets tanked overnight, the bounce was not affected much.
How long do you think a bounce could carry on?
I mean, is there something by which it can be calculated? Or just a swing target of an upswing could be one target ( irrespective of how many days? One or many)

amarjeet said...

respected sir,
please advice me where i see charts because i see charts on moneycontrol.com.but there s no true indicators.

a said...

ur favourites have been those that build bases sir..while gold has been galloping along...silver seems to ve quietly built a base and broken out of that and now consolidating again...your view on silver wil be appreciated

Atul Krishna said...

Why brokerage in delivery is so high in comparison to derivatives ? Is it now like pushing people more towards futures market !!