Thursday, June 2, 2011
Now you got my attention
First, let me do the routine portfolio update. Received 888 saving for the month of June.
Yesterday sold off in the US market finally got my attention. I love to see headline of any indices dived 2% on heavy volume. It's one of those signs pointing either we are getting closer to capitulation or the end of a correction. If you look that the short term trend, it's almost like beginning of a downtrend, every rebound is lower than the previous rebound high. However, if you look at the medium term, the market is still in the uptrend but trying to get back to lower part of the uptrend channel.
I think this is a third time that I said that we are going to have consolidation for at least 2 - 3 months time, the market is likely to fluctuate within 2 - 3%, 12,000 - 13,000 range for the Dow.
When the bull market goes into second or third year plus some other factor like QE 2 exit, summer time, etc ......we can expect investment maxim of Sell in May and Go Away will hold very true for traders.