Office and coffee areas are abuzz with stock market chatters. Some folks keeps on talking about Top is eminent and some folks keeps on saying that market will put in another record year as we are in super bull cycle. I also get pulled into those conversations once in a while.
When to come to ask me my answer is as follows:
Lets look at some charts on weekly time-frame and one can judge for yourself what is going on and at levels one say say that Bull market is over.
As you can see from the below charts that all indices are making new highs. The last lows in all the indices were around Feb 2 2015.
Tops normally takes 2 to 4 weeks to form where we don't go anywhere and just chop around at the same levels. The professionals are systematically selling to the amateurs who are hoping that new highs will be there soon and eventually market runs out of buyers.
As of now we are not seeing that type of phenomena in the market. The stocks are making new highs, we also see some sort of rotation from one group to another.
So for now the market is in a healthy state. One has to keep an eye out for any sort of corrections. If the corrections gets strangled at the levels shown by dotted line then the bull market is intact and expect the trend to continue and markets to go higher. If for some reasons, if the markets decides to take a bearish mode and one of the buried ghosts comes alive(there are lots of ghosts buried under namely, Greece, Russian war, Chinese deflation, Oil Crisis and mother of all Federal rate increases)
then you should expect the above dotted lines breached and good 10 to 20% correction should be expected.
When to come to ask me my answer is as follows:
Lets look at some charts on weekly time-frame and one can judge for yourself what is going on and at levels one say say that Bull market is over.
As you can see from the below charts that all indices are making new highs. The last lows in all the indices were around Feb 2 2015.
Tops normally takes 2 to 4 weeks to form where we don't go anywhere and just chop around at the same levels. The professionals are systematically selling to the amateurs who are hoping that new highs will be there soon and eventually market runs out of buyers.
As of now we are not seeing that type of phenomena in the market. The stocks are making new highs, we also see some sort of rotation from one group to another.
So for now the market is in a healthy state. One has to keep an eye out for any sort of corrections. If the corrections gets strangled at the levels shown by dotted line then the bull market is intact and expect the trend to continue and markets to go higher. If for some reasons, if the markets decides to take a bearish mode and one of the buried ghosts comes alive(there are lots of ghosts buried under namely, Greece, Russian war, Chinese deflation, Oil Crisis and mother of all Federal rate increases)
then you should expect the above dotted lines breached and good 10 to 20% correction should be expected.
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