Usual jitters persists at fundamentally non supportive heights. Smart owners know the value of the things they are holding and reducing long equity positions before weekend makes sense. We have just mentioned in our monthly market update as well as in another piece ( To earn from equities innovation is needed ) why markets will keep on floating until the bubble burst suddenly.
Don’t be fooled by today’s drop in NIFTY assuming it will be a start of downward move. As the market will approach 9000 and Fed rate meeting during later month, such inexplicable drops and bounces will be the sight de jure. Stay calm and carry on with simple strategy. Buy the drop from good support ( 8800 in this case ) and short ( preferably via put options ) during big spikes. S&P may drop back to 2100 but still that can’t jeopardize its upward bias. Thus, NIFTY drops will be supported too at every major supportive junction.
Cause for today’s drop is, traders fretting out because of weekend. Come Monday and there will probably a bounce or a gap up. So keep listening to the clues from the price action along with sound intermarket analysis in order to continue profitable trade or at least not to get sucked into inadvertent silly loss 🙂
Also these are our recent individual stock picks for trading and they are performing as per the technical script.