The BRICKS are breaking out, but India is being left behind due to a lack of breadth. Large-Caps continue to perform, but when they pause there are not enough stocks to pick up the slack…so what we get is a messy, choppy 2-year range in the Nifty 500.
As a result, we’ve been focusing on the stocks showing relative strength…making money on the long side by sticking with the names that continue to trend, and playing the short side when the reward/risk is ridiculously skewed in our favor.
Unfortunately, it looks like we’re going to close out the year/decade with the same gameplan as charts like the one below are a symptom of the weak breadth problem India’s had for two years.
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