However in the bear market, stronger sectors may also follow suit if the bear market continues for a while. It is difficult to predict when the bear market will end. Usually, the smallest bear market will at least have two intermediate downtrend joined by a bear market rally.

Many investors have a tendency to average down when the indices and stocks decline. During the bear market, many stocks drop by 50 per cent or more and by then holders think that was ``far enough'' and try their popular game of averaging down. After allthis ``averager'' thought, since he was going to be sitting around praying that the stock he's stuck with will recover, he might as well double up. That way he reasoned, the stock would only have to rally half as much more before he would get out even. Of course, there's something terribly sad about spending one's stock market days cheering for a rally just so as to get out even, but more importantly, there are many flaws in this approach.

Professionals ``average up'' not down. It's when the market action starts to prove right that they pile on further; not when they've been proved wrong. Instead of sitting with a weak stock, they get out promptly. The ``averager'' is thrown off the track, however, by thinking of buying more precisely when he should be selling. Later, his mind can be further misguided if and when the stock rallies a bit, as it is happening now. By then he has a target price to get out even and if the rally does not carry that far, he grimly sticks to his mathematical desire.

Every timeyou averaged in the hope of hitting the bottom, you'd simply have been adding more shares and more losses to your portfolio. The result is that one winds up throwing good money after the bad. The best thing that an investor should do is to switch over from weak stocks to strong stocks. Many stocks in the detergent sector are still exhibiting a bullish relative strength and this is one of the few sectors in which the investors can pick up a few stocks while switching over from weak relative strength stocks.

Henkel Spic
Henkel Spic bottomed out in 1997 and since then the stock has been in a major uptrend and has been exhibiting a very bullish relative strength. The daily momentum indicator is in its sell mode but with the weekly momentum indicator still above its trigger line, investors can use the current correction to add to the stock while they switch over from weak stocks. The daily as well as weekly momentum indicators are exhibiting higher tops indicating higher levels in the stock. Therelative strength of the stock is bullish and has been staying above the zero line. Thus investors must continue to hold on to the stock.

Nirma
Nirma bottomed out in early 1999 and went into a major uptrend. The stock zoomed past its earlier major top and is in the new high territory. This means that there are very few resistances to the stock. After attaining a high of 915, the stock has been reacting like an intermediate downtrend. The relative strength line for the stock is bullish and investors must continue to hold on to the stock. More long positions in the stock can be added in the current intermediate downtrend.

This can be done either now or when the stock goes into a fresh intermediate uptrend. The weekly momentum indicators are well above their trigger lines while the daily momentum indicators are in their sell mode. However, as both these indicators have been exhibiting higher tops, higher levels will be seen in the stock.

Hind Lever Chemicals
Hind Lever Chemicals droppedbelow its earlier intermediate bottom on an intra-day basis and is close to confirming that the major trend of the stock is down. The weekly as well as daily momentum indicators for the stock are below their respective trigger lines indicating selling pressure in the stock. The relative strength line for the stock has been staying below the zero line suggesting that the stock is under performing the sensex and investors must look out for other stocks in this sector.

TN Petro
TN Petro has been staying above its 30 WMA, but the stock has exhibited lower intermediate tops. It has not dropped below its earlier intermediate bottom and hence the major trend of the stock is still up. A fall below 20.70 will take the stock into a major downtrend and investors must use this target as their stop loss levels. Also as the stock is not one of the leader, investors must avoid switching over into this stock. The relative strength line for the stock has moved very close to its zero line and some more weaknesscould take the stock into a major downtrend.

Vashisti Detergents
Vashisti Detergents is the only stock in this sector which is in a major downtrend as the stock has dropped below its earlier intermediate bottom and its 30 WMA. The 30 WMA has also now been sloping down suggesting still lower levels in the stock. Thus investors who are holding on to the stock must get out from the stock in the next intermediate rise and should look out for long positions in other stocks from this sector or other stocks which are still in a major uptrend.