Market Thoughts

Halo Friends...

Interesting day it was on Monday...Low volume...And FIIs and DIIs figure showed no big selling...So who sold? I think retail capitulated yesterday...Atleast to some extent....What I found most interesting here was how some midcap stocks went down heavily without any real reason...

One thing I have noticed is when we get very close to a market top, speculative midcaps start flying...daily 5%, 10% up and exact opposite at the bottoms...This is nothing but retail speculators getting active..Often very late to the game...Happens regularly and will keep happening I guess...

So what am I doing now?...Holding tight to longs and adding...Throwing in hedges and booking profits on them so that my cash longs dont suffer too much...Still in the red...But adding on as we go down...Markets are irrational creatures...When we go up we overdo it...When we go down, we overdo it...I think we are overdoing it now...How much more? Not sure but watch 3950...This is very very important in short term...Break this and it opens up 3800, 3600 and then 3400...
But now is a good time to be doing a bit of SIP daily into quality stocks...

Not posting charts today but above figures should be important...

One thing here is we need atleast 2 weeks of sidewise to up to turn the trend back up...So if you arent long yet, wait for this....Weekly stochastics as I have mentioned below should tell us when its safe to go all in....I will update when I see this happening..

Best.