Is Amer Sports' Rally Running Out Of Steam?

Core Insights - Amer Sports is currently in Phase 2 of its Adhishthana cycle, which consists of two parts: the Sankhya period and the Buddhi period [2][4] - The stock has experienced a significant rally from approximately $20 to $40 during the Sankhya period, which typically indicates weakness or consolidation [4] - A correction of about 20% occurred as the stock transitioned towards the Buddhi period, dropping from $42 to $32 [4] Market Sentiment - The current rally is viewed with skepticism as it is occurring in the wrong period of Phase 2, which may not be sustainable [6] - Despite some firms remaining bullish, caution is advised due to the misalignment with the Adhishthana Principles [6] - Heavy call writing in out-of-the-money strikes indicates market skepticism [6] Future Outlook - Phase 2 is expected to continue until May 2026, with a clearer setup anticipated only after the Yajña formation begins [6] - Patience is recommended as the best strategy for investors at this time [6]