How Will The Bear Market Saga Unfold?

There is hope in air. A friend of mine asked me if we are going to touch 5000. The B-Channels are more than happy to give such figures, the reason best known to them. Some five weeks back everyone was asking if we are going to touch 3600 - 3000. Now just five weeks later  everybody is going for 4900-5000 levels. This exactly what bear market feeds on. Its always a contrarian call. When everybody was 3600 the markets went up till 4600 and now when everybody is 5000, market will spring a surprise.

Enough of gyan , lets check it with some chart. You have to show some proof to the world to make them realise their folly.

 

So we can clearly see how the markets have moved since January. Lets see another chart to bring more perspective to what I am saying

  

I think now it must be clear. A point to note is the Slow Stoch which is likely to go downhill bring down Nifty with it. So get ready to short guys. This will be a lifetime opportunity to earn money by shorting , buying puts and build a portfolio when we are close to bottom. Stock will be sold at unbelievable prices.

Levels to take note of

4577.53 4558.30 4539.07 4500.60 4462.13 4442.90 4423.67 4385.20 4346.73 4327.50 4308.27 4269.80 4231.33 4212.10 4192.87 4154.40 4115.93 4096.70 4077.47 4039.00 4000.53 3981.30 3962.07 3923.60 3885.13 3865.90 3846.67 3808.20 3769.73 3750.50 3731.27 3692.80 3654.33 3635.10 3615.87 3577.40 3538.93 3519.70 3500.47 3462.00 3423.53 3404.30 3385.07 3346.60 3308.13 3288.90 3269.67 3231.20

Meanwhile for some reading

Some excerpts
"bears are exceedingly dangerous environments for investors. Fools ignore bears at their own great peril, and even the prudent are filled with plenty of trepidation. For the most part, you can't merely weather a bear by buying the best-of-breed companies. They will get sucked into the selling too. Other than sitting in cash, the only viable strategy for surviving, even thriving, in bears is actively trading these merciless beasts. "

"The key to successfully trading bear markets is understanding their primary driver, sentiment. The mission of a bear is to gradually hammer on investors until their perceptions of stocks radically change. When a bear begins, optimism and greed abound and traders are far too complacent. But by the time the bear ends, all hope has been beaten away. Pessimism and fear remain and traders are totally demoralized. "

"To trade a bear, traders have to carefully monitor popular sentiment. And then when it gets to an extreme, they must do the opposite of what mainstream market thought considers right. When the thundering herd is scared, traders want to go long and buy stocks. When the herd is greedy or complacent, traders want to go short and sell stocks. Contrarian trading within bears is dazzlingly effective. "