Hi, I read this comment at Timamo, which makes good meaning
" I have run a simple analysis of what market returns were after 8 consecutive up days.. and surprisingly, shorting a market after such a run had negative results.. the results suggested that market tends to stay flat to positive after such large upmoves... atleast for first few days.. instead, traders should go out and buy stocks from the broader universe which are showing uptrends.. and fressh breakouts from ranges they might have formed over the past few days.. a good example for today is reliance capital.. or Hindalco.."
So, it is 6000 before shorting can be even considered. Else let it break 5700 first.
thanks for bringing this. normally resistance zone is where sellers are expected to sell but this momentum has overcome all resistances so easily which can be explained only by simple psychological factor that people are willing to bet little extra if it produces some extra profit to offset part of their holding period loss by small margin Probably it may be right.
2 comments:
Hi,
I read this comment at Timamo, which makes good meaning
" I have run a simple analysis of what market returns were after 8 consecutive up days.. and surprisingly, shorting a market after such a run had negative results.. the results suggested that market tends to stay flat to positive after such large upmoves... atleast for first few days.. instead, traders should go out and buy stocks from the broader universe which are showing uptrends.. and fressh breakouts from ranges they might have formed over the past few days.. a good example for today is reliance capital.. or Hindalco.."
So, it is 6000 before shorting can be even considered. Else let it break 5700 first.
hi alphabet1,
thanks for bringing this. normally resistance zone is where sellers are expected to sell but this momentum has overcome all resistances so easily which can be explained only by simple psychological factor that people are willing to bet little extra if it produces some extra profit to offset part of their holding period loss by small margin
Probably it may be right.
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