Wondering if this should be called a rally or not. It looks more like a nice and easy build-up. ASX 200 index is currently nearing 3800, which is 20% above November lows of 3200.
The downside of proclaimed 20-30% bounces after a through is that one has to get into the market at the very bottom, which is extremely difficult psychologically. And, besides, these percentages are much, much lower if the percentage is calculated from the top or other time periods. At the current levels, this is only a 10-15% retraction if you bought at 5000 and not at 3200.
Nonetheless, below is the current market chart. Some analysts say the economy is in a bad shape and there is no reason to be optimistic. Let's hope this is not the case and this upward movement is not purely speculation based on high hopes of the new US Government's spending plan.
The downside of proclaimed 20-30% bounces after a through is that one has to get into the market at the very bottom, which is extremely difficult psychologically. And, besides, these percentages are much, much lower if the percentage is calculated from the top or other time periods. At the current levels, this is only a 10-15% retraction if you bought at 5000 and not at 3200.
Nonetheless, below is the current market chart. Some analysts say the economy is in a bad shape and there is no reason to be optimistic. Let's hope this is not the case and this upward movement is not purely speculation based on high hopes of the new US Government's spending plan.
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