Sorry for not posting any update for the past 2-3months, quite busy doing errands. :)
To recap what happened in the past few weeks, U.S. made new highs after resuming work on Government Shutdown and moving the deadline of debt ceiling to Jan-Feb of next year. Our target correction of double digits(10% or so), was cut into half, and US rallied into new highs. Quite short that we were not able to chase in the gains.
Remember that US companies are earning good amount of money, hitting new all time highs, but the US debt is increasing every second, making some catalyst that may possibly downgrade US govt bonds/debts by early next year. At worst, a US bond/debt default.
Now that Elliot Wave Analysis suggests that US extended its Major Wave 5 of Primary Wave III Bull Market, we should be ending the minor wave 3 or 5 of Major Wave 5. And the double digit correction should be seen soon, to compensate the 20% YTD rally of US Equities for 2013, before rallying into new highs until early to mid next year. US Equities are now at 15-16x, around the historical average. (60% chance to happen)
A possible 3-6% correction could be happening soon before making new highs, and delaying the expected double digit correction by Jan, coinciding the debt ceiling issue (40% chance to happen)
Europe Equities also made 5 year highs, and hitting 70>RSI levels and reaching the upper range of the entire bull market, so there's quite a hint, that a slowdown in rally could be in place very soon.
Asia Equities on the other side, like Jakarta and Philippines are taking time to digest the rally they gained from 2011-early 2013. They are still 10-15% from the top, and are in a sideways pattern. Low volume and low foreign buying left them in a sideways pattern. Their PE is at 20x and 19x respectively, still above average, but GDP are in good shape.
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