Market Strategy for investors

The global markets have bounced with S&P in the US crossing the critical resistance of 1405 level. This might be encouraging for the US bulls ad we might see further upside momentum.

Indian market have held firm for last couple of days and clearly trending up. It is very difficult to say as to how long will they move up. As the house is divided on this being a “bear market rally” or “bull market uptrend”, the volatility might begin to pick up. Personally, I like this skepticism. I am also seeing many stocks that are ready for a good 10-20% bounce .

This is not a “buy and hold” market. This is a market where trader shall make decent money. Infact my gut feel is that coming times shall be really bad for “buy and hold” investors.(especially we actually stay in a range)

If you are a passive investor it is better to preserve your cash and live for another day to fight it out later. It might not be prudent to expect 2003-2007 like upmoves in this market. During last 4 years it was more about your putting your money into equities rather than any stock picking skill.By any stretch of imagination, we might not go from 20,000 to 100000( in next 4 years)like we moved from 3000 to 20,000! If it does happen, that shall be real party.

This market might move both ways to give a lot of money to smart traders.