Midcap/Smallcap Weekly – We have had a good rally from July to Sept and the consolidation which looked like a setup for a breakout appears to be weakening. I thought some good numbers will help the breakout but even good numbers are getting sold into, unless there is a big earnings surprise. I am not sure what will help this breakout. The longer this sideways movement goes, more the probability of a breakdown out of sheer fatigue.
Disc: Booking profits and reducing exposure on trading positions. Selling bulk of the consumption names since I have very high allocations and good profits (nearly 25-30% on avg. since July), except VBL which I am unable to sell. I am thinking the weakness in smallcaps will give some opportunity so raising cash seems prudent. I might be wrong.
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