Market correction? Good!

Intelligent Investing · 1 Market correction? Good! Fri Jan 17, 2014 3:08 pm

Intelligent Investing

Senior Equity Analytic

Posts : 88
Equity Stars : 3897
Reputation : 0
Join date : 2014-01-05

Its actually a good sign to see a market correction with profit taking after a few days of upward momentum. It shows that market is a healthy one. The downward movement was not significant - which is technically a good sign.

I expect the market to move up from Monday onwards. Today was a good time to buy good shares at cheaper prices. Shares like TKYO halted the upward movement so one could collect them. From Monday on, it'll move upwards.

Last edited by Intelligent Investing on Fri Jan 17, 2014 3:29 pm; edited 1 time in total

D.G.Dayaratne · 2 Re: Market correction? Good! Fri Jan 17, 2014 3:15 pm

D.G.Dayaratne

Senior Vice President - Equity Analytics

Posts : 2020
Equity Stars : 8708
Reputation : 57
Join date : 2011-12-13
Location : Kotte

"Its actually a good sign to see a market correction with profit taking after a few days of upward momentum. It shows that market is not manipulated and artificially driven. "

100% correct

You can use technical analysis now

econ · 3 Re: Market correction? Good! Fri Jan 17, 2014 3:19 pm

econ

Global Moderator

Posts : 1479
Equity Stars : 8430
Reputation : 94
Join date : 2011-01-27

market is in over bought condition. so the correction is expected.. I am expecting 2,3 days of correction.

knockknobbler · 4 Re: Market correction? Good! Fri Jan 17, 2014 3:38 pm

knockknobbler

Manager - Equity Analytics

Posts : 178
Equity Stars : 4285
Reputation : 12
Join date : 2013-02-21

Intelligent Investing wrote:
.........................

I expect the market to move up from Monday onwards. Today was a good time to buy good shares at cheaper prices. Shares like TKYO halted the upward movement so one could collect them. From Monday on, it'll move upwards.

Any chance ....,
for market to go down from Monday onwards ......
What should be the strategy ?

puliyanam · 5 Re: Market correction? Good! Fri Jan 17, 2014 3:40 pm

puliyanam

Manager - Equity Analytics

Posts : 119
Equity Stars : 3998
Reputation : 10
Join date : 2013-12-04

Up up and away hopefully guys....

sureshot · 6 Re: Market correction? Good! Fri Jan 17, 2014 3:53 pm

sureshot

Vice President - Equity Analytics

Posts : 1222
Equity Stars : 7681
Reputation : 19
Join date : 2011-04-26

buy when others sell.......
sell when others buy.......

may be Monday market in over sold condition Very Happy

Intelligent Investing · 7 Re: Market correction? Good! Sat Jan 18, 2014 8:58 am

Intelligent Investing

Senior Equity Analytic

Posts : 88
Equity Stars : 3897
Reputation : 0
Join date : 2014-01-05

knockknobbler wrote:

Intelligent Investing wrote:
.........................

I expect the market to move up from Monday onwards. Today was a good time to buy good shares at cheaper prices. Shares like TKYO halted the upward movement so one could collect them. From Monday on, it'll move upwards.

Any chance ....,
for market to go down from Monday onwards ......
What should be the strategy ?

No need to panic - this market is still under valued and quarterly results are around the corner. This market will move up towards 6500

Antonym · 8 Re: Market correction? Good! Fri Jan 24, 2014 7:52 pm

Antonym

Vice President - Equity Analytics

Posts : 1090
Equity Stars : 7454
Reputation : 275
Join date : 2011-02-09

econ wrote:market is in over bought condition. so the correction is expected.. I am expecting 2,3 days of correction.

Thought for Next Week:
As many as 66 stocks, including JKH & COMB, are currently in overbought territory (RSI>70): This has happened because prices have moved up sharply. Based on current technical charts, prices appear to be too high...

Does this mean that prices will come down soon? Not necessarily, according to Sam Collins (Chief Technical Analyst at InvestorPlace): "In a highly volatile market in which traders and investors alike expect a correction," he says, "the chances are high it won't happen."

Out of the 66 stocks that I mentioned, 54 are still displaying a bullish trend. Under such circumstances, Collins advises, "Be cautiously bullish. Only buy into dips and keep your stop-loss orders intact."