Find me on Google+ Find me on Facebook Follow me On Twitter Subscribe to RSS

About the Author

author photo

Shabbir is an online entrepreneur in the field of Internet Marketing and is devoted to optimization and usability of his websites. Apart from doing trading he blogs about Internet Marketing Tips @imtips.co

All Articles by

Bear Market Rally Vs Bull Market

Bear Market Rally

I was doing some research about the historical data of Nifty and Sensex and I have seen something interesting. In the history of last 4 decades we have seen almost you can say 14 Bear Markets. In each bear Market there was a sharp V Shaped recovery and that V Shaped recovery is similar to the current Bear Market V Shaped recovery.

Bull Market

Again the above data I used to see if there is something different from the previous rally and I found one thing which is Volumes. All previous bear market rally had always been a low volume and there is definitely a reason behind it. The people feel tired looking at the market which never goes up and then tend to move out of the market and does not look at the portfolios. This means low participation for a very elongated period of time and this low participation drive the recovery and as the interest of people come again the next leg of downside comes in.

Conclusion

Current Rally is a bear market rally based on pattern but a bull market when you look at volumes. So now it’s your call to decide what it could be. No marks for guessing because you may now know that I am an all time bullish on Indian Equity market.

Share ...

How My Technical Analysis eBook Can Transform An Average Investor into A Market Analyst

Learn Technical Analysis

If you're trying to make money from equity market, you should understand how the market works and not bet on your luck.

Technical analysis and chart pattern can revolutionize your understanding about the market and help you understand when is the right time to get into any stock and what should be your possible target for the stock.

My eBook helps you get equipped to understanding the market from practical point of view which means unlike many other technical analysis books my eBook does not explain all possible technicals and patterns that any student need to know.

In short I have explained technicals that I use when trading and investing in market.

Click here to find out more …

2 Responses to “Bear Market Rally Vs Bull Market”

  1. Lee Smith says:

    I would say the stock market is in a rally of a bear market. From March 2009 to June 2009, it was recovering from steep declines which is normal on a bounce back. The short term affect is positive but the long term affect is still negative. Remain in money market funds at the present. If you are still in stock funds, then you will have to wait this out. If the S&P 500 Index goes below its 1 year low from March 2009, then a critical decision will have to be made to transfer to money market funds or continue uncertainty.

    Stock Market Consultant for Mutual Funds,

    Lee Smith

  2. Lee,

    S&P 500 going below 666 is very much unlikely but yes its not impossible provided the recent Jobless Data this week but emerging markets don’t expect to touch March 2009 Lows.

    Thanks
    Shabbir

Leave a Reply

Spam protection by WP Captcha-Free

Disclaimer- Trading have large potential rewards, but also large potential risk. You must be aware of the risks and willing to accept them in order to invest in the markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to trade in market. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
Learn how to make money in equity with my free e-book. Get your free copy now