It always pay attention to what the market is saying. Currently I am not hearing the market calling us to enter big now. The market is in sideway mode and it does not seem easy to trade. Neither moving up nor down. Yesterday good ISM report did not help. Today DOW decrease by 70 points now.
Of course, Apple and Google contributed to some of the drop in mid day today with each down 7 and 10 points respectively. Having said that, both might have reached a temporary support at 650 and 750. So let us see how market react to these 2 big mammoths. By the way a reflection of how Apple affects the US market. 20% of Nasdaq and 5% of S&P 500 is affected by Apple. It is no coincidence that the market is weak after Apple released its iphone 5, which seems to end its run in a hype.
Btw, Dow has been down 6 in 8 trading days. A show of tiredness that coincided with Apple?
Like what we said after QE3, there seems no expectation now that QE3 is over. No more fuel to burn the market now. Perhaps we need Friday's good jobs reports to light up the fire again.
Mid term wise we do still think that bullishness is still there. But short term wise, I would be extra careful before the employment report before knowing the next move.
Once again, I suggest cutting down on any position you enter and studying your stocks more carefully before entering.
(Update at 4am Singapore Time)
Apple and Google did have a wonderful comeback with Apple hitting 650 and Google at 750. 2moro US market has a chance for a comeback with Apple. Let us see...)