Last phase of the rally

Posted: April 3, 2014 in Uncategorized
Tags: ,

We are fast approaching the last phase of the rally.

– Volumes in US markets are dropping so much that High Frequency Trading is switching to the For Ex market

– Institutional are selling with “Pass the candle” strategy ( Bloomberg Font: in the last 5 days investor sold Equity ETF for USD3.7 Billion  and bought USD1.3 Billion of Bond ETF – Sector wise Financial lost the most assets under maangement

They are doing it with what I call “pass the candle strategy” – Only institutional can do this. They buy a lot (usually options) in Pre Market…so the retail investor flocks to buy the great new rally day and they dump their positions.

So what is in it for us?

The market can drift higher for a while – sometimes  there is here and the a bad day that wipes out 5-6 days of drifting higher.

This could go on until end of April


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s