An Eruption Building Up...
WELCOME BACK FROM THE LONG WEEKEND!
Hope you guys had a blessed and loving weekend and are now spiritually and mentally recharged for the challenges ahead.
The force of a volcano eruption is directly proportional to the build up period prior to it. This is the same in the stock market. The stock market has been building a bullish eruption for the longest period that I have ever experienced personally. The market was literally going sideways with gold and oil prices going skyhigh while short term bond yields tank. All these pent up investments need to be released into more investable assets very soon and a return to equities in a big way seems inevitable. The first signs of the eruption has already happened with gold and oil pulling back strongly from their highs. The 2 favorite sectors, commodities and agriculture are taking a big hit while the market moved up in inverse proportion. Any bears still betting to short side better think twice by now as the bulls are going to come strong and hard when the erupt starts. Speculators could consider buying into this using risk limited instruments such as stock options now.
Labels: fundamental analysis
posted by Jason Ng at 5:51 PM
3 Comments:
We just narrowly escape a financial tsunami (from BSC rescue) and you are telling us that the market is going from bust to boom now? Okay, let's see if you are right this week.
I can see that you are probably a new, young investor with lesser than 5 years behind your ears.
If you have been through the past 2 market crashes like we professionals have, you won't dare laugh at my analysis of today. :)
Go do more reading and research. :)
Oh, just one more thing. I never said that the eruption will happen this week. You are probably reading my analysis wrong as well. It is coming and it is already starting but don't expect to see an eruption straight away this week. That is why I only suggested buying options, and not getting outright fully invested. This could take a while but when it comes, you will definitely be better off prepared than not. With the current developments, there is definitely more room to upside than downside.
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