It finally happened and what a move. The Sensex powered past the 15000 mark and very close to the 16000 mark, before the US market jitters caused a pause in the momentum. The question is will it get past the 16000 mark or will the rally peter out.
If we look to the recent past it is likely to move beyond the 16000 mark on the back of a lot of money flowing it. That it is fools money is without doubt. But as we have often said the markets can remain irrational longer than we can remain solvent.
What we do is use the safest instrument we know, options, to trade away to profits. I am sure you have heard about options being a risky instrument but that was not me. More about the safety net of options trading later.
In the mean while look for going long on any sharp corrections. Happy trading.
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