The bulls have been in charge the last few weeks since I last posted. This is the best September month so far, from years of history. This coming week we will see if we really have a upside US equity market from now until December.
There are encouraging news that double dip recession is unlikely because of the recent labor and economic reporting. So, general investment sentiments are up and actually quite high historically. The monthly indicators on our right navigation bar is positive. The major indexes have not dipped below their 200 days moving average. The mutual funds managers think that the US equity is cheap based on low P/E. Everything looks rosy. But I will wait a week to see if this move up since August is a whipsaw. Be reminded that the economic condition is still not healthy, the market is anticipating. And we should follow if it resolve to break out to above the August highs. It it does then the dips from here will be shallow for a while.
Gold is still bubbling up despite what Soros said recently about it being the ultimate bubble.
Summary: Be patient for another week if you like to be long. Not a good time to be short when the bus is full of happy investors.
GC – Editor
