Enjoy till it lasts!

Break out: MACD curve moving above 0, indicating positive trend has begun for the market!

In my previous post I had written that I was expecting some upmoves. . . But the strength of the rally was not something that many had anticipated. However I was happy as I had made some investments prior to that. But only in Cash market. I had taken Welspun, Indiabulls & GE shipping and the returns from them are 61%, 11% & 29% respectively in a matter of a couple of weeks!!!And also this is where investing in direct equities is much more of profitable game rather than investing in MF, provided one has a good understanding of the markets! For e.g. I had bought equity MF also during the same time and they have been able to just about break even in this time!!! I have set out to get decent returns from the market, and am trying to build a model portfolio that includes Equity, Gold, Debt, FD, Cash and MF. . . but I have kept the highest returns from Equity. . .so far so good. . .but I also know that when the reverses happen one has to be very very quick to get out of equities and that is the most difficult decision to make!!! 

Well as I had written in my previous post that some of the stocks were available at dirt cheap valuation, and they would become long term assets, is probably coming true, as I donot expect (and hope) that some of the stocks would ever see the kind of levels they saw in the previous month. . .

Now where from here??? A good question. . .I think currently we are positive. One should ride this rally if you have invested, if not then its a little tricky situation. . .cause you dont want to invest when the market is at the top just to see your equity getting blown up in a couple of days. . .However if you feel very strongly for some stock then wait for the downmove day and one can invest a bit . . .However a good investment is always done when the markets are in a state of fear and not when markets are on an upswing. . .So look at the basics, see if you can make some sense of the technicals (as in this market there are a lot of cos that would still be negative and are an avoid) and then make a decision. . .