Yesterday I talked about the US market mispricing Walmart's bad news. I think DOW will soon resume its ascent. Indeed, today's 180 points movement (as of 3am Singapore time now) is testament of US market strength.
I do look forward to a great holiday season and 4th quarter from the US market. Today STI's rise by 31 points and KLCI's positive day also show confidence in the local market, despite yesterday DOW triple digit phoney drop.
With the US earnings season in full throttle now, the market will also focus less on economic issues like interest rate or China economic problems. I do look forward to a good 3rd quarter earnings amid the sharp fall these few months. The negativity may have been priced in. In US, a lot of stocks has already dropped by 10-25% recently.
I don't see a reason why the rise of interest rate might turn the stock market into a bear market. Don't panic like what a lot of chartists are!
So many of them say it is a bear market in September.
We are not in an economic super bubble yet. In fact, we are far from it. China, Japan and Europe are still trying to recover. There is no hyper inflated market yet.
Don't worry. Let us prepare for a good Christmas rally!
Especially when the whole market indices have dropped by 20-30%
(Bloomberg stats showing good december almost every year since 1990)
Rgds
Daniel
www.danielloh.com
