- – - An Objective View of the Markets – - -

If most have been reading my UCC’s, most may have felt that I am on the BULL camp. So with all the injuries suffered now to prices, egos, and to supports, where am I now sided ?

I must say I am still with the BULL camp, but now a more reserved and cautious one.

Markets were already due for ’some’ correction after the massive run-up from March ‘09 lows, but I was of the view that the positive growth and real recovery will outshine all other mini hiccups. Mind you, this current correction is still ongoing, and we are far from being out of the woods altogether, BUT there are signs of a short term bottoming out process.

Looking at the reasons for the recent downturn, we have

1. the worries of a sovereign debt crisis on the European P.I.G.S. (Portugal, Ireland, Greece, and Spain)
2. possible monetary tightening in the works (maybe 2nd half), if recovery and economic numbers are to continue to improve, hence siphoning out liquidity..
3. tightening of policies, and putting the brakes  on the speeding and overheating China economy

Those were some… Now that confidence and fear has gripped markets again, it is quite hard to reclaim footing in just one sitting, so do expect more volatility to plow back into the markets., though some normalcy and silence should be in the works esp when a lot of  Asian fund managers will go on break for Chinese New Year.

For the DOW, we could see some bounce onto 10,300,  as we are recently seeing some rubber band action when it touches below 10,000…

Keep it safe, all!!!

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