9/15/2006

Market heading for correction

Too much of froth. Many gap ups. This market needs a serious scary correction. I am actively watching for signs of market hitting an air pocket.

Two weeks ago no one wanted to listen to possible bullish scenario. Now everyone is talking of Goldilocks. The obvious low risk bounce from bottom for many sectors and stocks trade which worked so well for couple of weeks is over.

Notice how the bearish commentators for past week have been scratching their head as if they had bad bout of dandruff. Some even talked of deflation (Grandma talked about it weeks ago). No more 20 posts in day scaring you about impending collapse, crash in housing, inflation, oil to 100 USD and so on.

It is time for rest and retreat for market.

2 comments:

amit said...

I agree, am cash since this morning.. its going to be a dicey few weeks from hereon untill we hit the numbers season.. would you agree with it?

Pradeep Bonde said...

I think so. Now suddenly everyone is bullish. You have to be ahead of the curve. Last couple of weeks was easy money when the bears were thumping the table. When I see GOOG gapping 4 dollars and CME 10 dollar plus, I quickly liquidated many profitable position in that morning gaps.