Most of the Trends are always Global. Here's something amazing that happened in Q1 CY 2016
What happened in Q1 2016 globally for Fund managers?
Stocks they avoided went up, and the ones they owned went down pic.twitter.com/2QwVCAzavc
— Deepak Singh (@smarket) April 5, 2016
Fundamentally, nobody can make a case for investing in Steel stocks. Forget past - the future also looks bad for the sector. But here's what two leading stocks of the sector have done in last few months
Here's JSW Steel Stock chart
Here's Tata Steel stock chart
Technically - the stocks have done very well. But they were not buy case earlier...and they are not buy case even today. Having said that - Yes - they are the big surprise movers of 2016.
LESSONS WE CAN LEARN
In market - anything can happen. It depends on how market participants are positioned. At the start of 2016 - every man on the street was bearish on STEEL and hence a surprise rally happened because there was nobody on the BULLISH side of the trade. In markets - how market participants are positioned for the trade matters much more than the fundamentals.
When everybody moves on the same side of the boat, the boat overturns
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers