How long will the rally last | stockbee

4/03/2008

How long will the rally last

  • There was not much of follow through breakouts on second day of the rally.
  • One of the most troubling aspect of this market has been lack of new leadership sectors.
  • The top 10 sector list is full of sectors which are old leaders of rally.
  • Counter trend sector rallies like that in housing are not going to have sustainable leadership and will son run in to trouble.
  • Under such circumstances you have to look for just 5 to 10%moves on breakouts. Many moves are giving back part of the profit intraday, so if you have 5-10% profit, you better lock it in.
  • It is difficult to build bigger positions or to hold positions for larger profit potential.
  • As the earnings season progresses the picture might change, but currently it is still too early to tell how much leg the rally has.

No comments: