Top line stocks are showing more weakness than the index, it very clearly shows that all is not good for the markets at the moment. Traders please ensure caution on your trades both long and short. Market is struck in a broad sideways move. Many prominent indicator signals have been faked out. The Industries that are showing strength is not in a smooth way, all the advances are adding to more confusion.
For example the Edible Oils Industry took a bounce, it does not mean that there are opportunities, it is showing volatile movements. KS OILS is a dumped down stock. Almost all the top ten rank file has collapsed except for Bharti and Infosys. Here apart from Infosys, bharti is not very attractive.
Financial sector has taken a strong 'U" turn after showing some strength. If a super strong indicator signal fails, it shows that there is some underlying bearishness yet to be unveiled. System traders stick to your rules, have confidence, do not use punter calls. Trade only with full confidence. Once in a trade you should know why the stock is behaving in the way it is doing. If you are in doubt, stay out on the sidelines. Staying on the side lines is also a position is long or short.
It is holiday season now, there may not be much activity in the markets, volumes may drift down, insiders will have a upper hand, do not get struck to their greed.
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