We are now just near to the 52 week high – a psychologically satisfying level. Most market players, across the world, believe that - not only the worst is over but also that the much awaited ‘economic revival’ has started. While we are not sure whether economic revival has really started or not, one thing we are sure is that ‘investor sentiments’ has improved dramatically.
As they say “Stocks don’t sell for what they are actually worth; but rather, they sell for what investors ‘think’ what they are worth’. Extend this saying to the market and that is what we are witnessing. Every one believes that economic recovery has started. And like always, all investors – retail, HNI, Mutual funds, FIIs, et al, usually follow the mass thinking – usually referred to as ‘herd mentality’.
Now here is an open secret - the main reason all of us are buying today is ? - 'BECAUSE THE PRICE IS GOING UP'
And pray , this is not necessary a virtue of the Indians alone .....
Going by something what we may call a ‘world wide rotating investor sentiment’, it seems that the Asian markets rally because the US and European markets are positive and in turn the US and European markets rally because the Asian markets are positive!
The roller coaster is spinning - and spinning quite fast . We can equate this to the 'Passing the Parcel' game we enjoyed - not so long ago. While we may enjoy the game, don't forget to get down on the first signs of trouble .. Because otherwise the 'Big players' as usual, will exit leaving the 'ball' in order hands !
Happy trading !
CA Rajiv D Khatlawala
Head of Research & Training
JHAVERI Securities Ltd.
2 comments:
Rajeev, your nickel and zinc targets are finally achieved now..how does the outlook look now and can one enter shorts in these now with strict SLs?
and any other commodity plays in the offing?
Your blog is really very interesting. I have been reading it since long. Such a deep study is hardly available.
Manish Prajapati
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