December is just around the corner the DOW and S & P Indices reaching record highs are indicating that Santa Claus is early!
I’ve been reading a couple of articles sniffing out the sentiment in the market, and so far I can see no immediate danger to the uptrend in stocks. The usual suspects are asleep it seems and wish they won’t wake up soon!
1) Europe debt issues
2) US government policy changes (well this one will fire up early next year)
3) Geopolitics
I admit, my bullish reading would be limited to most US companies, blue chips, so for holders of emerging market stocks (like Philippines, Indonesian, Thailand which were the darlings early this year), you better be ready for more market swings. If you want any clues to this “money movements”, this article gives an overview of what’s happening among investors / fund managers as they review the performance of the the asset classes.
There is a very important lesson in it and I hope you are able to put it to mind. That, there are many places to put money on, and each attracts money in different ways. Notice how gold was so strong at the onset of the financial crisis however it has fallen off more than 20% its highs at the talk of tapering and interest rate rises.
For me my new short-term trade on my retirement account is in a bank stock (ANZ) that has reached a high of $34 but has traded lower last week to 31.50 level, my goal is to make 3times what I risked till the end of the year. I have a fairly wide Initial Risk or 1R of 60c.
Last Friday the stock moved 20c higher and with the Monday trade following a good week at Wall Street, I am expecting this stock to roar.
