What do the markets now say? One thing is for sure, the head and shoulders made on the 30 minutes chart has now been cancelled and with that the Nifty has moved into a short term downtrend. It has given a signal to all short term traders to exit long positions and wait for a further dip to re-enter the markets. The investors are already waiting on the sidelines to enter at lower levels. Their stop is much wider and is close to 4500. But, at what point should we make a re-entry? The answer to that is, only when the market tells us to. And that will happen when the short term trend changes to up again, which means a move above 4970. We may get stopped out again like this time but that is the only wise thing to do.
We should just wait and see what the market wants to do. Wisdom lies in following the market and taking positions accordingly. There is no point trying to catch a falling knife or try to jump in a running train.
As mentioned in earlier newsletters, we are inviting our esteemed readers to send in their contributions in the form of articles to be published on this page. Take this opportunity to voice your opinions to the world about the fall today, the markets in general or anything remotely connected to the markets. Please e-mail your articles and don’t forget to mention your name and location so that you are given due credit for the article that is published.
Happy investing!!!
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