Broad based buying | stockbee


Broad based buying

  • Buyers used the one day weakness on Friday to pile on in full force in the market. It was party time for bulls and shorts were left scrambling. The buying was broad based with over 400 breakouts in my scans on long side.
  • All bad news is being interpreted as good news currently. So market has factored in at this stage lot of negativity. It is always interesting to look at how the market reacts to bad news.
  • Stocks with low relative strength and beaten down stocks are bouncing back with vigor. Homebuilders had a nice day yesterday. The investment banks were also good performers.
  • The start of the quarter strength has now taken lot of stocks in to zones of overextension and low risk entries are difficult to find. If you were late to party, you will be left with lot of cash to invest with no low risk entries. That is why more a methodical approach like the IBD clustered follow through signal or Market Monitor can help you decide when is the time to go back in market after a correction.

1 comment:

Semsons said...

Hi Pradeep,
your monitor didn't give a correction signal for this week?.