The market is up! Opening higher and hovering high today, the market lost a bit of steam at the end to close at 3126.30, up by 38.81 points. The markets in Asia and in the US have been linked relatively closely as I have mentioned before. This part of the world takes the cue from the US and how it closed. The US closed 2% higher yesterday which could have fueled buying today.
I would suggest that this phenomenon is not long lived. Looking at the 3-month chart, the top seems to be near. I do not expect to see the market breaking its previous mark of about 3186.
Tactics we can apply now are, selling to lock our gains and buying them back on the correction. This would be similar to shorting on your own holdings. The rule of thumb to make this profitable is to make sure the difference of the sell and buy price in this "pseudo-shorting" is greater than the total cost of this transaction (sum of sell cost and buy cost). This will give you a higher return than holding on to your current holdings for a longer period (if you are expecting a positive return). Also, your risk is cut when you have "locked-in" your earnings on your gains.
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