Friday, November 5, 2010

Priced in ?

About two weeks ago, I felt that I need to take a break from the markets. That will allow sufficient time for a few issues to play out. I normally do not care so much for issues like that because stock markets are normally forward looking trying to price in most of the issues like Republican will wallop Democrats, QE 2, earnings, etc.......

Dow managed to make a new high yesterday at 11, 434. Bullishness among investors and traders are quite high The market went higher because it has converted more bulls especially those people has been waiting for a market setback hoping some of the traders to sell on news. The sell off did not materialize. March Faber for example was waiting for market to sell off if QE announcement was less than $ 1 trillion. The market did not sell-off though the quantum was only US $ 600 billion. Luckily I did not have any shorts or else I will be hurting like crazy.

The retail investors are in the driver seats now. Since they have just joined the party less than 1 month, I think the KLSE party will go on for a while. The usual year end rally and Chinese New Year rally will make a lot people smile.

I will make a few personal trades(I won't be sharing these trades because these trades are from popular blogs and newspapers and broker tips) but I will keep Turtle portfolio original mission to generate 10% return per year slow and steady(so expect very little action on Turtle portfolio). Despite of strong momentum ahead, I will still want to wait for a reaction before jumping into actions.

Wishes all Happy Deepavali.

No comments: