Market Watchers : Rally overdone?

[Botany Bay]

Here in Australia we're about 35% off the bottom, which we hit in March.

My gut is telling me things are a bit overdone, profits should be taken and caution should be exercised over the next month or so.

How are you feeling? What do you think is the fate of this rally?

 

[Tomato]

No way.. rally will continue, we will get shocked here and there but we are good to go.

 

[Holdfast]

How are you feeling? What do you think is the fate of this rally?

Bit of breathing space. The rally will continue, as the bad news is all out there now and it's doubtful there are more major skeletons in closets. But it won't be as strongly as before in the short term and there are profits to be taken. Most larger funds are taking time to reorganise their portfolios a little, which inevitably creates a pause in a rally. But it's not a fundamental pause, just a breathing space until more good news emerges, I think (hope).

Of course, the old adage is "sell in May, come back on St Leger's Day".

I never actually do this, mind you, but there's a kernel of truth to it, I think - summers can be a bit listless/deflating.

 

[RJDiogenes]

It seems to me that it will be trending upward for a while.

 

[Botany Bay]

Of course, the old adage is "sell in May, come back on St Leger's Day".

Never heard that one before But, you're right, any time out of the market is dangerous at the moment, if this rally does have legs.

There's an argument going around that large chunks of institutional money are getting back in, mainly out of embarrassment from sitting on the sidelines. Hopefully that can keep us up around here.

 

[Holdfast]

Of course, the old adage is "sell in May, come back on St Leger's Day".

Never heard that one before

Well, I guess it's more understandable an adage in the UK than elsewhere.

Plus, on the cynical side, I guess it gave market participants the opportunity to induldge in "The Season" without worrying too much about the stockmarket.