Nifty breaks important support at 5183, yet pulls back to close up. Now the line of least resistance turns towards bearishness, but consolidating markets have more false breakouts. Our New High New Low index which turned towards new lows has again reversed to bullishness with new high's taking lead. This is a rare occurance, a clear indication that the present sideways market is going to continue for a long period. Side ways markets tend to have many whipsaw trades. Trend following systems go out of trades. This is what is happening now in our markets.
Be it S&P downgrade or WIPRO failure in guidance, all were set in earlier, nothing is coming without warning. Traders need to just follow their systems, stick to system rules, play a safe game. Else account capital will get eroded and they will not be there when the tide changes into a strong direction to trade.
WIPRO was not a favorite among top IT stocks, it was already having poor earnings rank and now it has just accelerated further. Guidance reports show the real picture of what the software is undergoing. Let's not stick to an industry which is challenging, there are a lot more industries which are doing great rounds, giving out wonderful earnings and amazing growth in their performance. Invest in those super strong stocks and you are bound to make it big in the markets. You can 'Make a Living Trading Stocks'
Team BraViSa.
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