The market has a habit of falling in love with a sector and then driving its price up like crazy. As a market observer/trader, all you need to do is find when the market is falling in love and position oneself for that opportunity.
The love for Technology stocks started way back in October 2017 and I covered it back then in smarketpremium.com Member's only section:
The stock mentioned back then have followed textbook moves:
1. Hexaware stock broke out a week after I wrote the above article. It helps to focus at the right place:
2. Nucleus Software stock was very well positioned around last week of October as breakout play. Just see how well it behaved
3. 8K Miles stock also posted a textbook turnaround chart right around October 24 and just see how it responded
4. Axiscades Software stock also posted a textbook turnaround chart later and I covered it. Just see how it responded
As if this was not enough - now most of the frontline Tech stocks have joined the bullish bandwagon with TCS breaking out to new high after long long time.
What can we learn?
Market has a fascination for a theme and how important it is for a trader/investor to position for it right when the change is happening. So, people are talking now of IT stocks but the trend started way back in October 2017 and smarketpremium.com was right on time to bring to its readers attention.
smarketpremium.com aapko rakhe aagey 🙂
Science of Stock Price Action
The Business of Investing is not same as Investing in business. You have to know how stocks make a move and try to capitalize on that opportunity. It means following fundamental newsflow and its impact on Price Action.
Price Action is one of the best ways to make good investment decisions. That's what I teach all the time.
If you find Price Action fascinating - then Science of Stock Price is a good place to start. It's a website designed to help you learn various Price Action concepts.
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