The cat bounce is on.

My last post explained that a dead cat bounce is not a one day wonder. Today’s sgx nifty behavior is interesting. After hitting a low of 5078, it is now trading at 5139 which proves my point. Just as markets can go down more than we expect, they also rally, often more than expected.

How do you trade this? Have a view – up or down. take a position and stick to it. the volatility will ensure that you will see a profit soon enough, although your position may see a lot of turbulence in between.