HBJ Capital Team Says, "Look around yourself, you will see people holding cash are waiting for right opportunity to invest, it means we are not at the bottom, may be near the bottom. When you see none of your friends are interested or talking about market, when you see focus of most of the people shifting towards something else may be election or job security or some corporate bankruptcy etc; yes, this is the bottom of the market, don't worry HBJ will intimate you at the right time."As far as that chart is concerned, we are very much in the despondency/ depression phase. So it could be that we are getting close to a tradable bottom. I'm not sure we're there yet, but we're close.
This is usually a decent time of year to buy stocks. The sequence some of the smarter traders have been looking for is:
- Big declines into October and an October low. We got that. As I have said before, October is the Stock Market Crash's month of choice.
- Then a violent bounce. We got that in the run-up to the US election.
- A November re-test of the lows. We seem close to 'enjoying' that now.
- A nice tradable rally which would take us into the spring.
- Then the bear market resumes its suffocating grip.
I must say it's the pattern I'm now looking for. But the problem I have with it is this: who is going to do the buying? Where is the stimulus going to come from?
This has been a traders' market and the old-fashioned investor has been hammered. Why would he deploy any capital now? Indeed, who has any money? Any purchases you make may yield a quick profit, but you have had to sell double-quick - like a day or two later - before that profit becomes a loss.
- Sandeep Jain
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