A big closing auction, rebalancing play today, will it be...

A big closing auction, rebalancing play today, will it be positive?.

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Finally this week, after a long time, a touch of a key number 24. Not sure if it was only because of rebalancing, but momentum was building last few days.

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So after a long play under 20s, finally MEI reached its earlier familiar territory, early 20s. It reached there last week. It reached 22, but I didn't buy then. MEI likes to do back test, one sign of how it progresses up. Not in a straight line. And that gives me assurance that it's behaving like previously. May not mean much to most, but each of us look for clues, with which we are familiar, does not mean it's right or will play out that way. So my first buy at 20.5 when it came for 20 backtest. Next at 21.5 yesterday. My average now 21 for this phase. My next buy will be at 22.5 if it comes there. But if it comes back near 20 or 20.5, then I will exit and wait. Again I say because it worked last time when I exited on weakness or certain number play, once it loses a zone, there can be a long time after which it comes back.

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So what is driving the current rise? Is it rebalancing or as most long termers will say - it was long due, so nothing surprising there. I still feel the new territory of being in index may introduce new plays. My gut feel is, if things are not well, stock or sector wise, then the adverse effects are more as it is in the eye of many including shorters. But if theee is positive about stock, or sector, long due rerate could be expedited. Will that happen? Let's hope so. Enjoy your weekend and all the best.