Bear's Ferocity

Bears are known for their ferocious attacks. Every trader should keep that in mind and give due respect. It is for this reason that the bear rallies and downward journies are real fast giving no time. I have been pretty busy since last few months and have been just managing to update the daily levels which are shown on the blog.

I had a chance to go through some of the blogs in the "Morning Dose" and forums I visit and I came back surprised. People seem to be in perennial hope of revival of Bull run. This is also very common in my office. This motivates me to quote some gyan on Bear markets once again

"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. "

Enough of gyan but let me give you some levels which I have been persistent since I posted How Will The Bear Market Saga Unfold?  on August 8th.

Check for yourself, how the markets have stopped, took a breather and resumed its downward journey

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"

Figures in red are all done and the rest yet to be completed. The last one in red being todays low.


“ Market Timing is a wicked idea. Don’t try it ever.” -Ellis, Charles D.




“ There are two kinds of investors, be they large or small: those who don’t know where the market is headed, and those who don’t know that they don’t know. Then again, there is a third type of investor –the investment professional, who indeed knows that he or she doesn’t know, but whose livelihood depends upon appearing to know.” -Bernstein, William.