How far will the stock market rise?
Stic 3220
Klci. 1855
Hsi. 22565
N225 15071
S&P 1886
DJIA. 16552
Dow Jones & S&P 500 have gallop ahead despite pundits betting against them. There are two broad markets : the developed market & the emerging market within which you find blue chips & 2nd/3rd liners.
Looking at the crystal ball now, it seems that correction is imminent. The recent run-up, an overbought position, lack of new impetus coupled with April/quarterly low ring alarm of an impending correction albeit major.
What's holding up the market is a courageous contrarian plot; where everyone is expecting a drop, it is seldom delivered.
Drop, it will. The next two weeks can be telling!
Will the bear swing send the bull to the abattoir ? No.
Market psychology has swing from momentum trading (hot money) to contrarian trading (follow the money). The range & depth will be wider & deeper & the swings more volatile.
For the moment, catch (buy) the drop & sell in May & go away.
October will always be the most rewarding month. For those caught on the opposite fence, it's also most damaging.
This year rewards will go to contrarian players. Watch M&A.
Happy trading & trade with extreme care.
Subscribe to:
Post Comments (Atom)
-
the uneasy comfort of the capital markets... When there were free flow of goods and services, the world grow steadily and many countries be... -
fearlessness and indifference are undefeatable... The greatest fear of any mortals is Death... he who fears no one but when death comes a-ca...
No comments:
Post a Comment