Weekly Review and Market Watch
September 19, 2010 § Leave a comment
Market’s charge is starting to slow. Especially when approaching the traditional bear month of October.
That is of course based on, statstical probability. Nothing is for certain. And market will always make it a point to prove us wrong.
The rebound in equities has been extremely strong in the month of September, STI and the Indian Sensex breaking 52 weeks highs in the process.
In fact, the rebound is broad based, ranging from equities to commodities and export/trade.
It is a condition of reversal of extreme bearish view.
I could not help but feel that the charge could be far from over, but it pays to take profit while the going is good.
Yet, true to the contradictory nature of trading, one should also ride on profit. Take profit only when established support has been hit.
Of course, if price from the established support is a huge gap, it would be prudent to take it sooner than later.
Adding new positions at the moment would not be suicidal, but taking on unecessary risks.
While waiting for correction/retracement to appear, it would be good to add a few stocks on the watchlist.
C & O Pharm