Morning Report Wednesday 2 April 2014
The S&P 500 made fresh all-time highs in the US overnight and both the Dow and German Dax look set to follow in its footsteps tonight. Unfortunately, the ASX200 remains 21% adrift of its 2007 highs. The NASDAQ continues to unfold exactly as we predicted. Potentially , the press coverage may start to create the "Fear of Missing Out" scenario that pushes markets too high, too fast and sets them up perfectly for a +10% correction in May / June.Please see the Market Matters video update on the NASDAQ and ASX200.
I now expect US Indices to rally another 5%, likely into the seasonally weak May period.
After this rally, I am anticipating a +10% correction.
Conclusion and application to the Australian market:
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