A Word on Markets
The long awaited correction seems to have crept in the markets. Personally, I won't hold that opinion as of now. Lets think of this objectively. An uptrend is defined as a scenario where price structure forms higher highs and higher lows. Apart from this, higher Pivot highs and higher Pivot lows are formed. Violation of Pivot must always be considered on closing basis. On intraday basis, pivots are breached, but often retrace back from that breach. Hence, for the sake of simplicity and objectivity, we would want a close below critical pivots.
Currently if we see the price structure of the market, we would find that we are in a strong uptrend. The latest pivot low is 5934 and it is only after violation of this level on closing basis (daily frame) should we assume temporary pause of the uptrend. If however, close is below 5934 on weekly basis, we must definitely brace ourselves to see levels of 5500 - 5700 on intra day basis at least. There is a lot of macro economic development taking place all over the globe and hence sectors related to Realty, Metals, and Currency could gyrate viciously.
For traders, unless and until 5934 is violated on closing basis, one must look to go long. Personally, I would be looking to go long on slightest bit of visible strength. Trades won't be aggressive, but certainly I would rely more on price action than on anticipation. Every Bull run has a phase where prices collapse 10-20% every 12 - 15 months and if the current move is a beginning of that, then long term investors should use this weekend to make a list of stocks which they intend to accumulate.
Tc
