This is a risk here. With Dow going down by 60 points, Nikkei currently trading at negative region. Should I hold or take profits? Next week we will have Fed's meeting that is what the market will be waiting for. But ever since the decline, Fed has mentioned, hinted, more than once that inflation is his main worry. The challenge for him is to manage inflation and slow growth. Slow growth of course will cause more harm to the market. I do not think we are reversing out of a bear market yet. The higher we climb the more delicate the situation. For I remember market always give people a second chance to get out of the way. Earnings season coming up, that should be positive for the market. Otherwise, I will take a very cautious approach.
My view before the worldcup is that June was a good month to form a base. It is happening right now. After a base, we should be heading up. This upwards movement will be key. If it is unable to sustain, it will be dangerous as we can see us breaking STI 2280. Perhaps even see 2190 where many analysts predicted.
DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings. Copyright © 2006 GrowMoney Blog. All rights reserved.
