Stock markets have held steady, and several market indices have recorded all time highs.
Still, most retail investors and people in the street are nowhere near optimistic about the economy. And that probably means there is more upside action to come.
We have to bear in mind that the 2008 crisis and market decline is still not forgotten by most. After such a sharp decline, which shocked small investors, it usually takes many many years for these investors to come back. After the bottom in 1931, the market went up until 1937 even though the depression was ongoing.
Let’s have a look at the Nasdaq index (click for larger image):
We have another week of lunar Red Period to go. The market is moving sideways, suggesting ongoing strength.
This market has been lagging several other indices because Apple shares, the largest component in the Nasdaq, have been declining. I think it will catch up and I would look for the Nasdaq to test and possibly exceed 3200 by early February.
Last week I gave some information about the solar cycle.
The complete article is now ready and you are welcome to download it here (PDF file):
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As always, your comments or questions are welcome.
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I have just added it with a Scribd frame.
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