Hey folk
It is rather simple and everyone know that we are in a drop. Let get the general trend right, we are in a up trend.This is a big overall trend. Now we are having pull back.
In normal situation, when the dollar is strong, Gold will go down and the stock will go up. But in situation like now, which is quite irrational, when the dollar is weak, Gold and the stock goes up together. Because there are buyer that wanted a safe heaven that is gold and buyer who want to buy stock. So look at crude to lead the stocks. As economy is growing, the demand of oil will grow too thus the price of crude.
As i said in the last few posting that a big move will lead the way. A big up move have occur and it result a up n up n up move since 1st Nov in STI, the Us indices on the subsequent day. From technical point of view the up move is scary. Almost vertical, that is when i am cautious about it. I did bought stocks (as i said be long at the end of Oct, it came true) but in small quantity. This drop is a healthy drop. As all good bull run would have a drop and continue on the up move. I am still bullish on the overall trend.
Gd luck
