Double Dip & Double Down
The Dow Jones, leads the pack - yesterday it was showing signs of weakness. Today, it just completed a massive 1,860 drop i.e. almost 7%. Thank you Federal Reserve. Ironically, hit closed almost perfectly at a Support/Resistance point.
What does that mean for the Indian markets, well - we will follow suit. Expecting a minimum 5% gap down...
Because the move was stronger than thee previous day increase, consider this a bearish signal. If you're planning to add to your portfolio, wait a week or so.
It may not be the time to buy the dip.
If you're trading options, might be good time to sell some CALL Options. Or to reduce the risk, just buy some PUT options.
I'll be giving an update soon, so stay tuned.