Are Markets Too Toppy Or Are You Still Buying?

Discussion in 'General Trading Discussion' started by longtermbull, Oct 29, 2017.

  1. longtermbull

    longtermbull Administrator Staff Member

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    As markets remain strong, are you still buying, reducing your exposure or waiting on the sidelines for the next set back?
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I'm pretty bottom-up - buying stocks that appear to be good bargains or to otherwise indicate they are headed higher, and selling some or all of a position in some stocks that are shooting up and become more fairly valued or overvalued.
     
  3. longtermbull

    longtermbull Administrator Staff Member

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    Buying stocks left behind and selling those which have pushed on is not a bad strategy :)
     
  4. rakhi

    rakhi Active Member

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    Events like elections may cause temporary market volatility, but investors should avoid attempts at long-term predictions based on short-term market movements. Relying on forecasts is not a proven way to protect your capital, despite the confident predictions you may be accustomed to hearing and reading.
     
  5. longtermbull

    longtermbull Administrator Staff Member

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    Hi Rakhi,

    If you dont rely on forecasts when investing, what does guide you? Are you a stock specific investors?
     
  6. manoharb

    manoharb Senior Investor

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    I am FNO trader. Asian markets are still bullish so I am buying on every dip. I strongly believe in Technical Analysis ( Micro, Macro Indicators both ). Crudeoil and Forex Technicals are showing Russia, Saudi Arabia will increase Crudeoil production in 2018. Which will boost global markets. Possible more weakness in Dollar index in 2018.

    News is, US decided to increase Crude production 10 Million Barrels/ Day. My study says, US don't need to produce 10Million Barrel/ Day. US just need to support Global Trend and Increase/Decrease production according to changes in production of Russia and Saudi Arabia. Overall Global trend is Bullish.

    So, I am buying Call options on every dip.
     
  7. longtermbull

    longtermbull Administrator Staff Member

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    Oil could be an interesting play in 2018 after a few years in the doldrums. I am not wholly convinced that the worldwide economy will grow significantly in 2018 which would be a key factor in increased oil supply. Donald Trump would win his battle against the Fed if the dollar does fall in value - will Brexit have a greater impact on world trade in 2018? Not necessarily the UK leaving but the challenges ahead for the EU after losing a net contributor and potentially putting at risk a UK trading partner which buys more EU goods/services than the EU block buys from the UK.

    Could a small, but important, rise in the cost of worldwide finance restrict economic growth in the short term?
     
  8. manoharb

    manoharb Senior Investor

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    In 2018, Domestic level consumption, Electricity production and Supplementary fuels which can reduce Crude Oil demand are key triggers for Global Economic growth. As much time will pass, demand for Crudeoil will reduce.

    About Brexit, I think , Brexit impact don't create any trouble for world trade because of weakness in Dollarindex and Worldwide Domestic level consumption will reduce this impact. EU can manage its goods and services by increasing export to other countries or by reducing cost of manufacturing by starting new projects in other countries.

    How Politicians and Economists of any country, work in favor of own country's citizens ? This is important question for 2018 and more years ahead. Increase in Domestic Level consumption will reduce war threats ( Depends on understanding, in between Politicians, Terrorism is a biggest threat ).

    So overall , I think Economic Growth will rise, until battle of Polarized Nationalism against Constitutional improvisation find Pivot.
     
    Last edited: Feb 1, 2018
  9. Chartman

    Chartman Senior Investor

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    Nationalism is still strengthening around the world, the UK, US and even Europe are showing signs of pulling up the drawbridge and looking inwards as opposed to outwards - not good for world trade. They all talk the talk about increased international trade in public but signing deals, well that is just a whole different ball game :)
     
  10. Buyonthedips

    Buyonthedips Senior Investor

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    What is the general opinion about the markets after the recent wobble? Personally I think there is a lot more downside but the consensus seems to suggest otherwise?
     
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