Markets went down drastically due to covid (Mar 2020), Sensex went down -30% .As people started to get more aware of covid, lockdowns lifting, stimulus from governments, vaccines all of them together pushed the market back to track quickly.
But markets didn't stop at the trend line, They are continuing to make higher highs and going to dangerous levels (As of publishing date, Sensex 30% above trend-line).
Sensex is retesting Fib resistance formed by the Covid. Two possibilities from the resistance
1. Market does a correction and come back to trend line.
2. Market breaks the resistance and continuous making higher highs due to greed, more money from government, new people entering the market. Which will eventually lead to very big bubble (Correction will be one of the worse ever)
What to do know ?
Don't panic sell/buy, Just expect the correction and be prepared for both ways. Keep some cash, so we can buy the Dip formed by these corrections
When does we get the opportunity to buy these Dips ?
Hard to predict (i accept it around 2022). As it's hard to predict, as the market declines, make a list of companies you want to invest (your shopping list), and buy small quantities at the Fib support levels (So overall you avg out you cost)
But markets didn't stop at the trend line, They are continuing to make higher highs and going to dangerous levels (As of publishing date, Sensex 30% above trend-line).
Sensex is retesting Fib resistance formed by the Covid. Two possibilities from the resistance
1. Market does a correction and come back to trend line.
2. Market breaks the resistance and continuous making higher highs due to greed, more money from government, new people entering the market. Which will eventually lead to very big bubble (Correction will be one of the worse ever)
What to do know ?
Don't panic sell/buy, Just expect the correction and be prepared for both ways. Keep some cash, so we can buy the Dip formed by these corrections
When does we get the opportunity to buy these Dips ?
Hard to predict (i accept it around 2022). As it's hard to predict, as the market declines, make a list of companies you want to invest (your shopping list), and buy small quantities at the Fib support levels (So overall you avg out you cost)