If you look at the price action on the topi, the 28600 - 29000 zone has been where the bulk of the transactions have taken place over the last 8 or 9 months. It is basically the neutral zone, where bulls and bears hang out to decide what the next trend is going to be. It is also the zone where you are going to lose the most money as a trader, because it is where the most volatility sits (unless you are swing trading). So my strategy for trading right now (not day trading) is as follows. I am bullish. The market has absorbed every piece of bad news chucked at it and reraised it. So basically, the market has said - you doomsdayers are lying about your recession predictions, and I am not calling the bluff. I have picked up all the cheap stocks on offer, and I have a nice 10-15% cushion to absorb any more bad news you can chuck at me. I am still not convinced that the news is good, but I am already in, so will capitalize on any upside predictions thank you very much. So me personally, I am doing the same. I am holding my longs, and not taking any new positions. I will watch the breakout, and buy the pullback. I will trade momentum on the Topi, so will use the 3 strikes long technique I have mentioned in previous posts
Heres the problem, volumes across all bourses have been super light. The question remains as to who is buying this rally. According to US, it is not investment houses/asset managers. The markets are in turmoil, the info we have been receiving over the last two weeks have not convinced the main players, however it has convinced some people. Then you have Mr roffey preaching about grouping of oscillators and how things are going to fall apart. The undertones are all bad, however market has ignored.