DOW cant stop rallying each and everyday. We were expecting the slight correction since Jan 15, 2011 but DOW finishes on the GREEN side everyday and seems that it has overextended a few notches.
Normally, Short term Rallies extends to 2-3months, then few weeks of correction, and medium term rallies extends to 6-8 months before a 1-1.5month correction. Today's count is 7 months and still running, might be getting towards to the 8th month rally, or might be getting that 1-1.5 months of correction, we will see this Feb and March 2011.
With DOW's 3yr high since the late economic dip. GDP's getting better for Q4 2010, Jobless for end of Q4 2010 was so good with a 9.0% unemployment rate, from its 9.4% last Q3 2010. Overall, its a bull market with growing economic indicators, its just that, i feel these times when everyday for DOW is an a positive note, especially on a 7month advance, i feel like there would come a time that IT will give back some of those. - for a healthier and tradable market to hit new healthy highs in the near future.
My trades: PSE has been so weak, everytime DOW goes UP, PSE goes down. And if ever DOW finds it short term peak, will our PSE be finding its short term BOTTOM also? Let us see in the consecutive weeks.
PSE (peso) - 80% in. - have a gut feeling that we are near the bottom of this long correction around 3800.
AsiaPacific(dollar) - still 100% cash
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