Saturday, 12 April 2014

Weekend charts

As we have been watching over the last 3-4 months that tops are a process in the making whereas bottoms happen in a matter of days. Similarly, bear markets move 3-4 times faster then bulls markets. The markets have been showing many signals that the rally is stalling with margin debt levels breaking record after record and cash holdings of investors and traders are minuscule compared to their asset holdings. Simply put; masses are invested in waiting for their assets to appreciate but they need more buyers to jump in for that. But are there enough buyers? Where will they come from? Once the invested ones start getting scared and sell, will the others follow suit or will they keep holding? Will everyone rush to the exits once it is clear that the party is over? I would be very careful to buy the dips from here as the declines can be relentless.