Everyone on news, or in trading world, or in general is expecting a PULLBACK or SMALL Correction. Guess what! Market does not like to follow but rather ALWAYS likes to surprise. Its the element of surprise that defeats the enemy, Isn't it! So market continues to make new high, however it is doing so by creeping higher rather than roaring higher. All those who missed this rally which started in 3rd week of December 2011 are getting frustrated as each day market rises a little bit. The eagerness to get in the rally is HIGH and they are loosing patience. So, Are we concerned? Do we know what to do? Is this the best time to get in!!!...
Market has shown enormous strength so far. Many are expecting a pullback but so far no signs to be found. Remember, Market likes to penalize most people. All those who missed the rally started in last December 2011, want to get in as soon as a pullback happens. Market may continue to "creep" higher which means those who missed the rally will get more frustrated and impatient to get in. Once all those are sucked into the market then market will materialize its plan and we might see a pullback or correction. Then when shall we exit and what shall we do!!!
Market did manage to creep higher last week except on Friday when we saw decline on lower volume. Market is overdue for a pullback. News from Euro-zone keeps investors on the edge, however it seems like this might be a normal pullback which is healthy for the BULL market and NOT a major correction. BUT remember, anything can happen, its a "game of probability". Markets can keep creeping higher for weeks before the actual meaningful pullback or can breakdown in few days. So where are we headed!!!
Market did manage to maintain its uptrend so far. Earnings season was the catalyst as well as Euro-zone worries were discounted. Now that market is in extended territory, a pullback is due. However, market can remain in extended territory for weeks before a meaningful pullback happens. So then how do we know when to get out!!!
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