Short-term Bullishness in stock markets

Posted by admin on November 5, 2009 under Articles | Be the First to Comment

Short-term Bullishness

Good economic data, GDP’s upward revision, upbeat corporate earnings, etc seems to have tip the scale towards bulls’ favour ~ STI just broke and closed above 2,700 today, while U.S. futures and European markets are substantially positive due to out-performing corporate results from Intel & JPMorgan..

Can’t help but feel an urge to lean towards the bulls’ camp from a neutral position. BUT wait a minute! Aren’t we just talked about fragile recovery and conflicting indicators not too long ago?

This crisis has brought STI from its high of 36xx to its low of 14xx. A quick reflection will tell us that we are about 900 points from its peak, and about 1,300 from its low. Well, that’s a remarkable recovery even if u consider that the low was a result of ‘market oversold’ due to the market’s perception of possible depression then.

Not too long ago, I wrote that the STI is likely to be range-bound (2550 to 2750). It is now at the upper level of this range. In fact, the new found bullish momentum is likely to reach or even breach 2750..

Despite the possibilities of ‘greener pastures’ ahead, I am staying put i.e. no additions to what I already have. Yes, I will still ride on this up-wave, but no more no less.

Stay alert. Stay focused.

Franklin
RMAO
8.20pm ~ 14 Oct 2009