Market is still behaving awesome, S&P 500 is roughly 60% up since last march, stocks continuing rallying up the tendency but unfortunately it is not normal when fundamentals are unchanged and emotions and sentiments are feeding up this unstopable rally, my portfolio is behaving awesome trending the market and I can say it overcome the market in 50%, but, there is an important but, everything is overbought right now and it is a concerning indicator to be cautious in my case I wont be selling right now, but I will see what is going on the next days.
Dow Jones Industrial closed up 38 points on Friday at 9820 and is very near to touch the 10,000 again that is wonderfull !!!!!! I am pretty optimistic we will touch this level by next moth.
Recently I added up new companies to my portfolio I started buying low quantities of LVS but seeing his recent behaviour and the close linkage with Macao I bough pretty well more. There is an ETF I’ve been watching so far, EPU is a Peruvian ETF that is behaving great as well since its IPO a couple of months ago, the only idea that stop me up of this decision is the low volume transaction every day. I own BAC is a good one, INTC, TSL, STX, OXY, JAVA, even with the struggle of its merger acquisition SUN – SEAGATE , VWO is a good emerging market ETF that has Money in BRIC (Brasil, Russia, India, China).
At least for now just follow the trend, Trend moves the market, I am not worry for inflation now but when inflation comes I’ll add high-growth foreign companies, it can be a good thing to diversify my portfolio against the risk dollar inflation. I am not concerned for the trillion printed debt or stimulus money that was injected but the market is very optimistic right now and trend will tell us when things would change but not know.
Dow Jones will hit 10,000 again with volume increasing every day this is a good indicator that investor are turning to equities again – fear has gone but be cautious market is really overbouth now .
As we can see in the chart S&P 500 broke last resistance in september and continues to new highs….Good luck!