Markets have dipped and then came back since I last commented. For the short term (months), I am moving my bearish stance to neutral because markets have moved beyond the Fibonacci levels. Staying on the sideline in this volatile market is probably the best bet for now. One should use small trading size and take profits at near resistance levels, while take a small bite at near support levels.

Based on the relative strength, I continue to believe that high-tech sector should be slightly over-weighed. However, since I’m already in high-tech industry, I do not hold anything in this sector besides my company shares & options.

Intermediate to longer term, precious metal-related investment should continue to go up.

Without any external events, this summer stock markets may be just range-bound to slightly trending up. Until all the banks stop to extend & pretend on their loan terms, kicking out the home squatters (not paying any mortgages for an average of 449 days), there will not be big write-offs from the balance sheets, nor a dramatic fall in financial sector. Reckoning days postponed.

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Tags: Markets, Markets Turning