I like to be proven wrong sometimes...

Year 2011 was a very volatile year. Topping in Q2 2011 and then falling in Q3. Global equity markets reversed in 2011 Oct and kept on climbing. That’s when I started to speculate that we’re out of the bear market.

Though the market was volatile, I mentioned the markets were trending North despite the volatility. Bottoms were made at 10,400 and 11,250. Who would know where the Dow would meet resistance in the future?

The rally stalled in Nov having gained support in late November. Equity markets continued to climb assisted by the Santa rally commencing mid December. Again, the post was reinforced that we’re out of the bear market.

Is it time to go in? Should we chase the market?

In my last post, I hinted that the Dow would meet resistance at the 12,800 level. Did you all notice? On Jan 26^th, the Dow broke through 12,800 to 12,830 thereabouts but closed below the 12,800 level. From there onwards, the Dow had closed lower for the next two days.

The rest is history? Who would have known that the Dow would meet resistance at the 12,800 level?

I like to be proven wrong. So far, the market had proven me right for many a times! The US major indexes has risen 20% so far. A correction would be healthy.

What’s in store for the Dow’s near future?

·         A trading range from 12,300 to 12,800?

·         Market to fall below 12,300?

·         Markets to consolidate and head northwards, break 12,800 for a stretch target at 13,800?

We like to hear your views! What’s your opinion?

My daughter Michele once asked, Daddy, how do you spell a blind pig? Puzzled, bewildered, I gave up. The answer is PG because a blind pig has no eyes (I). That’s the initials for Portugal and Greece. Listen closely to what’s brewing up in Portugal!

For the record, we’ve been ‘long’ since October 2011. The profit is reasonable and decent. So far we’ve been invested in Asia Pacific with additional concentration on South Korea, Australia, Hong Kong and of course, Indonesia with a small percentage in India for the more aggressive risk profiles! Our speculation in the above could not be better.

Gentle reminder on investing. Follow your strategy.

·         Have a good entry level

·         A support and

·         Resistant level.

·         Cut your lost on your portfolio no matter where the market is heading. This avoids an even bigger lost.

·         Ride your profits until resistant levels are tested and to take profit where resistance level looks difficult to be breached!

Happy Investing!