Breadth deterioration continues

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


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.


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.


Unknown 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!!

Pradeep Bonde said...