Dear Friends,
If you have been following our posts regularly, you would have found out that we have been bullish ever since June. Indeed, 4 months on, we have to say we have really seen a bullish run towards election as predicted. Our market sentiment indicator has served us well for the past 2 years and judging by the look of things, we may go on for another 2-3 months after which we really need to be careful.
Correction is on the way perhaps 2-3 months later. The situation is that NYSE 3000 stocks have been in the overbought region. My guess is it would be continuing the overbought situation for 1-2 months. Nasdaq stocks have proved this year to lag behind NYSE stocks. Nasdaq might (a guess) turn bearish in 2-3 months.
It has always been this case about the market! Just when the market rejoice about QE3 aftereffects, and stock market has risen to a height, a bearish turn will pop up one day. The thing is 99% of people buying stocks don't have an idea when it will strike. Today I am giving you the estimated time for you to take as reference. It will also depend on the speed of the bullishness...
But do take note that I am not asking all to be bearish now! It would be stupid to short stocks and index as this train goes on super high speed! Go with the trend and flow! Ride on the wave. This is often the point where contrarians also get killed. Who said trading is easy... Trading is tough because we need to shoose when to be a trend follower or a contrarian. It is still a bit early to short the market.
But the time when Obama gets elected is the time to be wary! It may be December or January. I predict the latest is Feb. That may be the point where NYSE might start to turn bearish and a sign of trend changing.
Keep a lookout on our market sentiment indicator. Once our alarms sound, that is the time to get out. In the meantime, let us chase some stocks higher and celebrate with the market!!! This is one last time we can be bullish!!!
Rgds
Daniel
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