Macro Prediction
Our view of the market remains unchanged. Look to the market action of the 1930s for clues about what is happening now. The powerful rally that began on March 9 is a bear market rally. The rally has been correcting since June, paving the way for another thrust upward. We ARE approaching a rally top in the August-October time frame. After than, it’s “Katy, bar the door!”.
How NSE Stocks fit into this picture
Green stocks have lead this strong general market rally. That is not surprising since so much stimulus money in the
form of tax credits, grants and rebates have flowed in the direction of Sustainablity. Advances in technology (the engine for REAL growth and prosperity) are just gaining momentum. These micro-economic forces ensure that Sustainability stocks will continue to lead this rally and the next!
That said, 2/3 of any individual stock’s price movements are dictated by the action in the general market. Sustainablity stocks represent the next great advance in human society but that fact means nothing if you have no capital to participate!
Recomended Tactics
Cultivate cowardice! Psychologically prepare yourself to bail out early and leave some money on the table. It is better to bolt for the exit a year too early than a day too late.
Use trailing stops on everything you own to protect the gains we have! If you lose a core holding, use limit orders to buy part of your position back at a lower price. Take some money off the table. We are closer to an intermediate top than a bottom. Take some profits were you have them. Build cash.