Market has shown enormous strength so far. Many are expecting a pullback but so far no signs to be found. Remember, Market likes to penalize most people. All those who missed the rally started in last December 2011, want to get in as soon as a pullback happens. Market may continue to "creep" higher which means those who missed the rally will get more frustrated and impatient to get in. Once all those are sucked into the market then market will materialize its plan and we might see a pullback or correction. Then when shall we exit and what shall we do!!! Below BPNYA Index chart clearly shows that BPNYA is well above 70 which indicates caution areas. As long as it does not cross EMA(30) downwards we remain invested. If you have been following this blog, by now you must be thinking that it has kind of become very mechanical. Simply follow the BPNYA Index indicator and depending on the scenario enter/exit Market. Indeed it is that simple, unfortunately no one tells us about this.
What shall we do if we have missed the rally? You can do one of following if investing in Stocks/ETFs: 1. Have patience and wait for a pullback, it is inevitable and will happen at some stage 2. If you are too impatient to wait then be cautious and use STOP LOSS if you enter any new positions 3. Be very selective in choosing Stocks/ETFs and avoid falling in traps, in short avoid Stocks/ETFs which have gone UP significantly without a pullback or pause What about 401K? If you did miss the rally then BE PATIENT and wait for pullback. Entering now is too risky and not worth the risk (considering minimum hold period of 1 month). Comments are closed.
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