Global Stock market rally….
Stock markets are different from Forex and commodity markets because stock actions are pertaining to the functionalities of the respective companies.Where as in forex and commodity markets global factors influence.However the stock market moves are now related to global perception.Without any fundamental attribute the stock markets can rise and fall based on sentiments - no technicals or fundamentals are used to explain this behavior.
Now operators are moving their funds from commodity and forex market to stock markets.So they rise forex and commodites and book profit in their holdings and also rise stock markets and book profit in their holdings and drop again to buy against their sell and add new buy positions at lower levels.This way when they book profits and re-enter their holding price comes down much against the market level.Then they pump the stocks quickly to off load when traders come for short covering.
Now in stock markets the drops are buy opportunities and quick rises are profit booking opportunities.Perceive the market correctly to trade at ease without frequent surprises.
Regards
Dr.Sivaraman
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