Stockology : Auto , tech , & capital goods will continue to rally in 2023.

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The column focuses on the intersection of technology and finance, exploring how technology is shaping the future of finance. Here are some key takeaways from the recent Stockology column by Mahesh Gowande:

* **The rise of AI and machine learning is transforming the financial landscape.**
* AI and ML are being used to analyze vast amounts of data, identify patterns, and make predictions. * This has led to the development of sophisticated trading algorithms that can execute trades at lightning speed. * Examples include algorithmic trading platforms like TradeStation and NinjaTrader, which utilize AI and ML to automate trading decisions.

The summary highlights a key observation about the recent market performance: the aggressive rise in market prices, exceeding expectations. This unexpected surge has led to some short selling activities, driven by short-term indicators. Let’s delve deeper into this observation:

* **Market Expectations:** The markets were not anticipated to reach such a high level so quickly. This suggests that the market’s current performance might be driven by factors that are not fully reflected in traditional valuation metrics or market sentiment.

* **August 10th onwards:** A distribution phase is observed in the markets. * **Magha phase:** Markets hit a new high, with the sun being in its own nakshatra and own house. * **Venus nakshatra:** Profit-booking is advised, distribution happens, mature investments are exited, and new ideas are executed.

* **Bad days in the markets:** A tough day to make money in the markets. * **Intra-day trading:** A short-term trading strategy involving buying and selling securities within a single trading day. * **High-risk, high-reward:** Intra-day trading is a high-risk, high-reward strategy.

* **S.3: Hasta:** auspicious day for trading and investing. * **Third tithi:** indicates a directional move, mostly positive. * **Hasta nakshatra:** rewards patient traders and investors. * **Lag indicators or signals:** should be used for trading. * **Slow and delayed action:** will pay well.

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