Dear Friends,
This is one of the crucial months where the final push may come, let us see whether the DOW index will struggle at the all time high, 14198, or 14000 centinnial figure, which I believe it might.
Looking forward, I am optimistic about the employment results this Friday. Let us see if this good result will push the index towards the all time high resistance. However my job is to serve a caution to those who thinks that life will be rosy in the market these 2 months.
Our forecast (which is of different sentiment to what the market is thinking now) is that this peak will reach in February, at which the index will struggle, and might go sideway for around 4 weeks before the fall occurs. Our opinion is not that Feb will drop big. Nope. We feel that it may go up a bit still but reach a peak and hang there for a while.
The latest date of the fall will be end of March or beginning of April.
I think some of you might have heard of the debt ceiling story. It is delayed to May. With or without the debt ceiling, market cycles do occur. And I believe we do not have to wait to May for the drop.
Is this a GREAT opportunity?
YES!
In fact, we have already prepared by weapon to capture this downfall. A fall to us is a great opportunity, to capture the short first and buy at bottom. It is when market falls where BIG MONEY is make! Money is going to change hands again, and the retailers is going to suffer again. This cycle will happen again.
Now, selecting the right stock to play is more difficult as not all will run now. Do be extra vigilant and careful this month onwards.
This is an early cautionary prediction from me.... we may be wrong, but the RISK is higher in February than January, especially after the earnings season in mid Feb!
Daniel Loh
www.danielloh.com