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Dear Investor,
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Thanking for overwhelming response to the survey. I know most of you want more frequent updates than weekly. I will try.
Theme is still - EXPECT Correction and be ready to hold.
I am adding JHS Svendgaard Lab Qty 100 at 103 to my portfolio. It could correct 50% but I am taking the risk. I will average down at 50 later. Long Side there is no resistance.
Also Bank of India stock is good. current price 515. Likely to correct to 404 so if you can hold then could go long. Long side there is no resistance for now.
KEI industries is cooking. It is a buy above 43.
NIFTY is bullish until it closed below 5800.
Thanks
Anil
Got a Question/Send your contributions for other members:
email:indiastocktrend@gmail.com
Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.
Tuesday, September 28, 2010
Saturday, September 25, 2010
Bulls Have the Control
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Dear Investor,
Check Our Current Recommendations
I am writing this blog to salute the bulls of this market. Be it fundamentals or be it excess liquidity, they are running and there is nothing to stop them. The rate of rise is so fast that you just can't afford to sit back and wait for your turn to come.
EXPECT CORRECTION
This is a wild bull market and correction is expected to arrive. Exact moment and timing is hard to find but it should not be list of our worries now that we know that bulls are ready to fight back.
Based on past corrections lets find how much correction can be expected
2004 Correction from 2011 to 1298 ( 35% )
2006 Correction from 3796 to 2616 ( 31% )
Lets forget 2008 correction that was a different story
So average 30% correction should be estimated. It will not come just now but it will eventually arrive. Right now the bulls are running strong. FII are supporting entire market. Our own mutual fund managers are selling stocks and raising cash. Eventually they will be forced to buy these equities at higher prices. This is a bull of our lifetime.
I do not want you to get super excited. Be very selective in your stock. Have a holding capacity for 3-6 months in case of correction. Even though markets may correct 30% individual stocks could easily suffer 50-60% loss.
In bull markets Index goes up 1-2% each day for months and corrections happen with a total time duration of 1 - 2 weeks. There will be no time to react. So hold on to your positions assuming you have fundamentally good stocks.
If some of your stocks are not running in such a bull market we have seen in last three weeks, I suggest you should replace them with something different.
From Bullish Sentiment to MANIAC investor
I wanted to wait till FOMC meeting in USA to judge the mood of investor across the world. It was not damped by it. Overall people are recovering from mindset of double dip recession. The fear of double dip is no more there. I believe that media will get you on that soon. Suddenly after couple of week we will hear news about Europe trouble, Gold bubble, Commodity Crash and something that we don't even know. This is a "Sadiyonse chalanewali Parampara". MANIA phase is getting developed. If you have studied your emotions last week, you know what I am talking about. It's hard to sit back watch the entire world get rich. Well that's what happens. The fear of missing out is the foremost killer in MANIA investing. Right now we are in a situation where anything you buy it goes up. That is what is called MANIA and MANIA ends with sufferings. If you are prepared that I am going to see RED color in my portfolio for some time and use the opportunity to buy more, I guess we will be fine.
New recommendation I gave are subject to suffer 30% loss and hence you should be ready to hold and buy more when situation turn negative. I divided them in risky an less risky categories also added fundamental analysis to the end of the list.
Check Our Current Recommendations
This month we complete one year of being together and sharing thoughts. Please give me your thoughts about what you feel and need in this blog. If I do not receive enough responses then I might stop writing and shut down this blog. I spend lot of time to research and write to you. I hope you will reciprocate and give your feedback by spending 5 minutes to fill this form below.
Survey of your opinion
Thanks
Anil
Got a Question/Send your contributions for other members:
email:indiastocktrend@gmail.com
Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.
Dear Investor,
Check Our Current Recommendations
I am writing this blog to salute the bulls of this market. Be it fundamentals or be it excess liquidity, they are running and there is nothing to stop them. The rate of rise is so fast that you just can't afford to sit back and wait for your turn to come.
EXPECT CORRECTION
This is a wild bull market and correction is expected to arrive. Exact moment and timing is hard to find but it should not be list of our worries now that we know that bulls are ready to fight back.
Based on past corrections lets find how much correction can be expected
2004 Correction from 2011 to 1298 ( 35% )
2006 Correction from 3796 to 2616 ( 31% )
Lets forget 2008 correction that was a different story
So average 30% correction should be estimated. It will not come just now but it will eventually arrive. Right now the bulls are running strong. FII are supporting entire market. Our own mutual fund managers are selling stocks and raising cash. Eventually they will be forced to buy these equities at higher prices. This is a bull of our lifetime.
I do not want you to get super excited. Be very selective in your stock. Have a holding capacity for 3-6 months in case of correction. Even though markets may correct 30% individual stocks could easily suffer 50-60% loss.
In bull markets Index goes up 1-2% each day for months and corrections happen with a total time duration of 1 - 2 weeks. There will be no time to react. So hold on to your positions assuming you have fundamentally good stocks.
If some of your stocks are not running in such a bull market we have seen in last three weeks, I suggest you should replace them with something different.
From Bullish Sentiment to MANIAC investor
I wanted to wait till FOMC meeting in USA to judge the mood of investor across the world. It was not damped by it. Overall people are recovering from mindset of double dip recession. The fear of double dip is no more there. I believe that media will get you on that soon. Suddenly after couple of week we will hear news about Europe trouble, Gold bubble, Commodity Crash and something that we don't even know. This is a "Sadiyonse chalanewali Parampara". MANIA phase is getting developed. If you have studied your emotions last week, you know what I am talking about. It's hard to sit back watch the entire world get rich. Well that's what happens. The fear of missing out is the foremost killer in MANIA investing. Right now we are in a situation where anything you buy it goes up. That is what is called MANIA and MANIA ends with sufferings. If you are prepared that I am going to see RED color in my portfolio for some time and use the opportunity to buy more, I guess we will be fine.
New recommendation I gave are subject to suffer 30% loss and hence you should be ready to hold and buy more when situation turn negative. I divided them in risky an less risky categories also added fundamental analysis to the end of the list.
Check Our Current Recommendations
This month we complete one year of being together and sharing thoughts. Please give me your thoughts about what you feel and need in this blog. If I do not receive enough responses then I might stop writing and shut down this blog. I spend lot of time to research and write to you. I hope you will reciprocate and give your feedback by spending 5 minutes to fill this form below.
Survey of your opinion
Thanks
Anil
Got a Question/Send your contributions for other members:
email:indiastocktrend@gmail.com
Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.
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