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As an individual investor, best strategy is getting 100% into cash, says market expert Jai Bala

Updated : July 22, 2019 02:03 PM IST

Market expert Jai Bala of cashthechaos.com has been calling for a big reversal in this market for several weeks. Bala is very cautious and has advised people to even move to cash.

According to Bala, "This is not just a short term correction, but a culmination of a multiyear cycle. I take carefully measured views, arrive at conclusion based on evidence and it is based on the multiyear analysis. I look at the medium-term more closely than the extreme short term. Multiple degrees of trend has ended at 12,013 and last week I was talking about a price expansion to the downside and that also has come through."

He is expecting intermittent bounces along the way, but nothing significant. “11,770 level will act as a big resistance from hereon. So all the bounces will get contained below those levels,” Bala said on Monday.

“In 2018 it was India that topped out – in 2018 August and then it was the global markets that followed in September-October 2018. Once again India bottomed in the end of October 2018 and then two months later the rest of the world market followed. So, there is a good possibility that India is leading on the way.”

“This equation, I do not know if it is just a temporary shift or if it is a higher degree shift, but it is something worth watching out. I am looking for one more record high for the US markets, but there too warnings signs are there,” he added.

Advising traders, Bala said, “I am expecting the Brent trend to be much more pronounced. I expect it to drop below 2018 low; I am expecting it to drop to USD 46 per barrel for Brent. So that might give some temporary hiding place for traders. You could look at something like crude related play like tyre stocks like MRF Tyres, Ceat and maybe even Interglobe Aviation.”

“For individual investors, if you are in 100 percent cash, then nothing like it,” he added.
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