Let’s look at the positives – the markets generally are in strong uptrends. And until those uptrends turn down, that’s the place to be.
The negatives are largely speculative. Some charts (e.g., Nikkei) look like they could fall over as early as Monday. Any retracement is likely to be shallow as good support lies not far away, and medium to long-term strength is solid.
The key may be the market reaction on Monday to the Chinese news on increasing inflation. Another news item concerns the income tax situation in America. Apparently Obama has made a deal with the Republicans on the question of tax and the house votes on the deal on Tuesday. That’s another market moving piece of news. Remember – it’s not the news but the reaction to the news that’s important. Watch the charts and don’t try to second-guess what the markets reaction might be.
Good luck
Red
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