In my last chart posted on Nifty I had mentioned either we have very strong undercurrents or we are in for a nasty surprise soon. Whats surprising is Nifty has shrugged off most of the negative news as no-news (remember the saying no-news is good news!). On the other hand its giving more credence to news that yet to happen something like GST, Monsoon would be more than full filling etc etc.
If you look around every single stock is making good money. You might as well spin a wheel to select a stock and it would certainly make you some money. The buy calls from any random person is doing well and number of people who say " I told you so" is increasing. None descript stocks from BSE and NSE which have very low volumes generally are seeing volume spurts and doing well. Stocks with low promoter holdings (as low as 20% ) are doing well. Stocks which have avg weekly delivery at 20% vis a vis trading volume are doing well. All chatrooms and twitter handles have a buy call which is the next rocket...next bazooka and not what. Fundamentals are frowned upon and "Bhaav hi Bhagwan che" is the new mantra. And yes the GOD (Price) has not dissapointed anybody yet.
It's an old saying " Cream Rises to The Top" but then so does Scum. In this rally a lot of Scum is rising too along with the Cream. Closing Gaps with Gaps is not a healthy sign as mean reversion is surely to kick in.
So is it time to shout BEAR? No. Its just time to be very carefull about your positins. Its the time to be very very and very serious about your stops. Its time to be patient and check the GREED within.
Posting a chart: PE chart of Midcaps. See how far its stretched from its average. Something scary something screaming " Just Be Carefull".
Chart Courtesy LINK
Well ofcourse all of this does not matter to the day trader but a swing trader should be wary and carefull while choosing stocks and allocating capital.
If you look around every single stock is making good money. You might as well spin a wheel to select a stock and it would certainly make you some money. The buy calls from any random person is doing well and number of people who say " I told you so" is increasing. None descript stocks from BSE and NSE which have very low volumes generally are seeing volume spurts and doing well. Stocks with low promoter holdings (as low as 20% ) are doing well. Stocks which have avg weekly delivery at 20% vis a vis trading volume are doing well. All chatrooms and twitter handles have a buy call which is the next rocket...next bazooka and not what. Fundamentals are frowned upon and "Bhaav hi Bhagwan che" is the new mantra. And yes the GOD (Price) has not dissapointed anybody yet.
It's an old saying " Cream Rises to The Top" but then so does Scum. In this rally a lot of Scum is rising too along with the Cream. Closing Gaps with Gaps is not a healthy sign as mean reversion is surely to kick in.
So is it time to shout BEAR? No. Its just time to be very carefull about your positins. Its the time to be very very and very serious about your stops. Its time to be patient and check the GREED within.
Posting a chart: PE chart of Midcaps. See how far its stretched from its average. Something scary something screaming " Just Be Carefull".
Well ofcourse all of this does not matter to the day trader but a swing trader should be wary and carefull while choosing stocks and allocating capital.
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