There’s evidently froth building up. Once bitten, twice shy. The Zopportunistic bet is sold.
With fast changes in fundamentals of these, it is difficult to differentiate between stage 1 accumulation & distribution.
The frequency & swiftness with which the sentiment in junk stocks is changing in USA is quite astonishing and some of it is rubbing off in Indian markets too. This is concerning and may be a precursor of mini October, 2021.
The order of money flows is no longer the same too! It is becoming difficult to differentiate between fundamental based fund flows versus speculative ones.
There’s nothing wrong in speculation if the rules of the game are known & taken advantage of - which is not easy at all, burned hands & torn shirts are guaranteed if leverage is used without respect & regard.
Earnings, medium term visibility of growth, valuations mismatch must be respected.
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