Why? Because market already moved higher and it is now in overbought territory. Yesterday and today’s volume is a lot heavier as compared to the last 3 weeks. This sounds like pent up demand whereby too many people got itchy fingers and could not “tahan” anymore and have to buy something, especially when market is rallying. “If I don’t buy now, market will go up so much without me”, type of mentality. And this is good! Market is developing a clearer single direction and all I am waiting now is a signal.
Maybe the only market that can spoil the party is Shanghai Stock Exchange. If it goes higher, it may continue to pull the regional market higher. Therefore let’s see if there will be any surprise from uncle europe. Do expect the unexpected. For all traders, you must have a plan.
