Thursday, 27 September 2012

I like what I see in US today! It did not drop much when Europe tanks 1%

Dear Friends,

These few days drop did make me worry a bit. But I do like what I see in the US market today. Let me give you the reasons.

1) Yesterday Dow dropped by a triple digit which I always say is a confidence denter and I will look closely at how things react the next day. However today, Dow did not drop much, just 15 points which I consider mild after yesterday mild panic amid the Spain riot.

2) Today Europe drop 1.5% for FTSE index. Dax drop 2%. This is a considerable drop in Europe. To be honest, I anticipated Dow to drop another triple digit following Europe weakness. Yet, Dow seems resistant! to my surprise. So it indicates that market sentiment is still good, and not yet as bad.

Hence my conclusion is that for those who has stocks at hand, if your stop loss is not hit, probably there isn't any need to sell away first. As things are not that bad. In fact, I foresee there is a possibility 2moro Europe and US might close in the green.

But having said that, be careful in entering any positions. As next week is a week packed with major economical news which still has the capability to swing fortunes anytime.

For now, let us still maintain our positive stand until sentiment really changes...

Rgds
Daniel
www.danielloh.com

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