Tuesday, May 20, 2014

How Bad It Can Hurt In a Bull Market

        Syndicate bank announced its quarterly result on 7 May and result were pretty bad, which punished the stock and it fell almost 7.5%. Most of the analyst predicted the stock could fell much more after watching intraday movement and result impact. But something unexpected happened and stock resumes its uptrend again from next day.

        Now it is trading near to its 52 week high and probably could see more upside. The reason for this surprising movement is we are in a Bull market, which means overall trend is up. And in an up trending market, we should not go against the trend.

        My point is not blaming analyst or fundamentalist. The conclusion is when we are in a Bull market, then we should try to avoid short selling either in individual stocks or index. Because they can resume their uptrend with the overall market at anytime.

No comments: