Breadth deterioration continues | stockbee

10/17/2016

Breadth deterioration continues

The markets  are experiencing steady decline in breadth . Sellers are dominating the action in last few weeks.

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This kind of selling is not conducive to breakout buying. A breadth thrust to bullish side can reverse this deterioration.

In spite of selling the Indexes are near high and continue to go sideways.

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Periods like these can lead to death by thousand cuts if you are too aggressive on long side. Protecting capital and being selective is the key at this stage.

2 comments:

Will Leung said...

Dear Pradeep Bonde,

I love your blog so much!

I have two questions.

According to the market monitor, the market is at a danger point, it is best to be defensive and protect my capital at this stage. I agree with you.

I am wondering that will you scan stock to buy at this stage?

I am having difficult to control the size of capital to invest at this stage. It is because I can easily to find good setup to buy even at this market environment. So I usually be blind to the market and just focus how good the setup is. Finally, the market keeps dropping and many good setup fail.

To me, I think that it is better that scan any stocks at this stage. Just take a vacation and do other things. Just spend little time to monitor the indexes. Until the environment gets better, then I get back to full time trading. Do you think this is a good idea?

Thanks for your help!!
Will

Pradeep Bonde said...

Yes.