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Bulls claim their victory. Its a new world of investing for me personally. This is a dream land where you will only make money. There is virtually no risk in any asset class. For a cautious individual like me, my eyes keep looking for risk and possibility of loss. It just doesn't happen in today's stock market world. Its hard to even believe that it happens this way. I do not like it. We need pullbacks to push out weaker hands so that the stock solidifies its base. do you really believe that Indian equities are so cheap that it has only one way up? I don't.
The net result of such behavior is when the panic sets in ( I don't when it will come), the weaker hands get shaken so bad that they don't know what to do. When I look back 2008 crash, it was due to some unknown financial system meltdown. well, the meltdown did not happen. The verdict is clear. Bulls want to go higher, which we have to agree to. We have to go with them until proven wrong.
Following chart of NIFTY look for the volume spikes. It is all green. Intentions are clear. We need to move higher. We are now clearing the recent base. In my opinion, the best to buy new stocks is when we see a pull back. It is just not happening. The pressure is on upside, so be it. Don't believe that there is no risk, in fact the risk is growing faster than you imagine. The better side of story is now a days risk is being rewarded handsomely.
IDFC chart is a good chart. Remember any new money invested should anticipate 30-35% correction and accordingly move in. IDFC chart pattern shouting bullish intentions. look at the increasing green volume lines. Look how it refused to go below 193. So green line is the major support line for this stock. You can't wait for it to fall there and then invest. As I told you, this market there is no downside until it actually happens. So for us it would be wise to get in with small position, buy more if the madness continues or buy more when it falls down to green line. In any case, its only buy and hold or buy more. But go in small blocks, is my humble suggestion to you. I know, you are so excited that you want to put all your money in stock market. I have lost the daring to say that "this is the point of exact peak in market". Reason is simple, there are no pullbacks in these markets around the world. Its not a normal environment.
Sterlite Industires, you all know the US government is printing money. They are all struggling to create inflation ( higher prices for goods). This additional money being released has to go somewhere and I believe, it would flow into higher prices for food, metal and everything else around you. This was fundamental blurb which is useless. Lets look at the chart below. This is my favorite chart pattern long consolidation. It has not given a clear break into uptrend that's why I am not adding it to my personal portfolio. Worth keeping eye on. Its a good investment on longer term horizon.
I want to hear from you. Do you really believe there will be no downside in current markets? Do you believe that we will only go up from here, never ever pull back to general average prices?
Thanks
Anil
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