Stock mkts too complacent??

[minimerc]

in the current risk-on environment amid all the another QE talks and LTROs, stock mkts have exhibited much confidence to a point where the short term historical vols (options) has came off to a significant low of below 10 and less than 50% of long term vols... All financial mkts are mean reverting and what goes up must come down before gaining momentum up again. These coincided with both STI and DJI formming a hammer albeit a very weak one.

Just be careful with the stock markets in the next few days... Likewise if you like high yielding currencies such as the Aud dollars. just be careful. Risk-off may be coming soon...Lets hope that nothing negative will happen in the next few days.....

[Rolex01]

With so much market uncertainties world wide, djia still able to cross 13k which is very positive and encouraging for the mkt.

Voliality had increased after since post Lehman which give us more excuses to trade. Hehe

Trade with care.

[minimerc]

US data have been very positive and it is these positive data that reversed the weak fundamentals.In fact, the US stock mkt didnt get affected much last year by euroopean issues. by buying time, the greek and european issues will be resolved whether by a ugly exit out of EZ or trigger of CE etc and mkt will slowly accept the fact and focus back on real fundamentals and liquidity. historically big corrections always happen when indice cross a significant high. i have been very bullish since Q4 last year and am still bullish in the long term, so long as central banks are in competition of easing, just worried about a short term FLASH correction. would rather sell covered call to extend the profit range rather than going all long... just hope that everything will be fine...

[Rolex01]

Yes, very true. But too bad we live in a country that greatly depends on global economies as we have no natural resources to depend on.
Whenever US, Europe, China squeeze...we will have earthquake. Hehe