Wait for Market Crash - Part I

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Dear Investor,

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Oh...I am tired of waiting for the crash in this market to happen. Irrespective of news, the market just holds on or just going up. I wonder, What will take to get everybody selling. Nothing I guess. The buyer base is so wide and so large, any selling just gets sucked up. Nothing left to sell at lower rates.

Whatever everybody else is touting, I do not believe that this market will crash. There is not indication for that. One thing I am sure is that few stocks are getting ready to break out and make new highs. Dollar strength, gold weakness, bad earnings news...nothing matters..the buyer is excited and is willing to buy. I have been waiting on cash for quite some time. I believe the time to change the strategy has arrived. We should start building the positions in phases. With a medium term view of 3 to 9 months, buy your selected stock now and keep the half position to be filled for next correction. If the market falls so what. It will fall to rise again.

I know, Stock Market is a emotional game than a game of numbers. Right now there is a balance of fear and greed so market keeps in the range. It will be a good strategy to just accumulate. At no time we should be invested more than 50%. Keep the rest for either huge breakout or tiny correction. This market has huge support base at 4700. It will not be violated under any circumstances. Be selective and be in the game. Only 50% though.

Kansai Nerolac has been sold for quite some time. It might have put in short term bottom. Its ultimate support is at around 830. Good buying interest has been seen at 1000 level.

Gujrat Mineral is on my watchlist for quite sometime. Recently it has just broken out to upside and small correction it had was quickly wiped out. Good volume accumulation days observed so might be worth your money.

Century Enka has wonderful chart pattern. Buyers are all excited about it. Very sharp uptrend. Good buyer support in this range bound market. Buy some now and buy some if it corrects and hold it.

Adhunik Metaliks just started to move up. Classical bullish pattern. Keep it on your watchlist. If it closes above 125 for three-four days then it will raise well.

ACC overall cement sector is doing very very well. Keep at least one cement stock in your portfolio. Ambuja Cement, Dalmia Cement or may be Grasim.

The wait for Market Crash is too much. Its not happening and it most probably will not happen soon. We have seen the worst already. Earning season will be used to generate some fear or worries to get you out. My suggestion is to stay strong. Keep your stocks and average them down in correction.

Sell your stock only if closes consistently below is 150 day moving average line. If you need to learn about how to plot the chart, please check my previous blog entries.

Thanks
Anil

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Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.