Thursday, August 23, 2012

Greed and Fear are Holding Hands

When greed and fear are telling you the same thing, do the opposite of what it's telling you.
Right now, fear is telling me that the markets will sell down from the 1400 level as we are now at the post GFC highs. Greed is telling me to bank all the profits from the past few months.  However deep deep intuition of watching markets move everyday is telling me the group psychology wants to take the current markets even higher.  

Stay the course, stay long and leveraged.

QAN full year loss, but price moving higher; up 4c in the session.  

Fed sent strong signal that it is preparing new steps to boost the recovery.  The stimulus would be coming 'fairly soon' - we saw gold rally, US dollar drop on this, and a recovery on the sp500 - the markets are remaining cautiously bid.  The FOMC suggest action at the Sept meeting.  Knee jerk reactions, shown by charts

European global stocks are heating up, valuations have been good for awhile now. 

Iron Ore prices continue to fall, but FMG is on target, and it's share price is at a very good entry point.