Profit taking hits the market | stockbee


Profit taking hits the market

  • The buying frenzy which started with rate cut cooled a bit yesterday. Short term players were actively booking profits in many high momentum names.
  • The ratio of 131/100 breakout reflects that. While the indices have formed a consolidation area here, buying and slow broadening of rally continues.
  • While this profit taking and reversal hit some stock, a fresh set of stocks like CROX, GRMN, CHNR, ICE, etc had fresh breakout. So there are more stocks joining the action. In a healthy rally such relay race continues with fresh stocks breaking out all the time.
  • All this action has been happening against the drumbeat of negative commentary and obituaries to Goldilocks. But ultimately in the market, price action triumphs. May be the market has priced in subprime.

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