Pressure is building!
Another week of sideways trading, the Banks in the US reporting better then expected while the Australian Banks came out with down grades to earnings and further write downs.
We are seeing the market stay with in the trading band at present but the pressure is building, I expect to see a move soon.
History over the past 18 months has told us that after sideway moves the market tends to fall further so at present the risk is to the down side.
Before you retreat back under a rock there is some good news, there are a number of stocks which are seeing strong support at these levels and we are also seeing the early signs of takeovers emerging in the market place. Also the smaller players in the resources sector have come out with good exploration results and had strong moves.
In short, the market is settling back down to some sort of normality, the volatile swings are reducing and investors are once again starting to look for value and income. Many stocks represent good value, so now is a good time to slowly get back into the water.
Do not wait for the market to turn, the market bottom will pass at some point but you will not know until months latter. It may have already done so.