Wednesday, October 28, 2009
It's a correction --- not a path to Great Depression II
When US $ index began travelling downtrend to a point of maximum of pessimism on Oct 22, stock markets around the world rally went into correction. It's not a surprise to me. The US $ index hit the bottom on Oct 22 and begin to strengthen, in my opinion some kind of short covering is going on. So, I would expect many asset classes to correct.
Right at our home, when I posted banking stocks hit new highs, I have a feeling it was about the time to correct because we almost running out of oxygen. I would think the correction is going to be short and shallow -- max 3 - 5 days more to go. Would expect people to step in to buy when S & P is hitting slightly below 1,050. Sorry, I got to keep things short because I am on the road for a few days.