Life at 5600.

The Nifty touched 5600, rather easily today. As most readers know, this is a 31 month high – highest since January 2008.

Should investors buy now? My view has been that investors should buy only on dips. Such dips occur regularly. If we are not in a dip now, then wait. Patience pays.

Traders should go with momentum, which is clearly up. I am giving below a monthly chart highlighting similar patterns in 2007 and 2010. Reader comments are welcome.

Who is getting Richer?

BusinessInsider.com says:

Companies that cater to average Americans are doing rather poorly right now while companies that market luxury goods and services are generally performing exceptionally well

My Notes:
The comments are for the USA. This does raise social issues about the rich getting richer, the poor getting poorer and the middle class getting crushed. But, as investors or traders it also highlights the areas of interest to us – Luxury goods and Services.

For Day Traders:
The miday is different from the open and the close. These are slow market hours. smbtraining blog gives suggestions on what to do during this dull period. Here is a list:

1. Trade only the best set ups.
2. Trade with less size.
3. Rip through charts. – go through your charts
4. Write in your trading journal.
5. Read blogs.
6. Find great set ups for the close.
7. Talk to others about the open.