‘Liquidity’ sell offs can be brisk.

In my newsletter to our clients, as well as on CNBC, I have emphasized many times that this stage of the rally is all about momentum. We should not give attach any fundamental reason to the market’s current strength. It is just the same old story of fear and greed. Past evidence would suggest in a market driven by notions of “liquidity”; sell offs can be rather brisk.

This is not to suggest that a sell-off is coming. But from this perspective, risk is rising. For this reason, Investment money should wait for a market correction. Investors who wish to participate in this rally should do so as traders. A trader will always keep a stop loss allowing him to take the least risk possible. An Investors puts his money on themes, has either a wide stop or does not have an exit strategy until the theme changes. For this reason, investing should always be done on dips to ensure the least damage if the theme changes.

How much time do you spend in searching for buy and sell calls? How much time do you spend in learning the tools of the trade?
Here is what you should do:
Give me six hours to chop down a tree and I will spend the first four sharpening the axe.~Abraham Lincoln
ORCHID chemicals may have reached at least a short term price target. The chart below explains why I think so.

I am giving a chart for Power grid which explains how I search for swing trades. The trading range is my favorite pattern! Questions on the chart are welcome. Since trading styles can and will be different, comments with criticism will not be welcome.