Eerrtt, if you read my earlier posts before Christmas, I had anticipated a recovery rally in January, what I had not expected was the extent and breadth of the recovery. But I had also stated numerous times, that indices are misleading, the reality is that many stocks are doing much worse that the ASX200 suggests. I expect a sideways movement in the coming months but leaning towards the downside. Rate cuts could be a double edged sword- while it would be applauded by the market but it is also suggesting that the underlying strength of the economy has taken a more substantial turn for the worse for the RBA to do so when it was more upward bias last year, and that cant be a strong outlook on the earnings front, and I think that's why you see a number of good stocks being marked down.
But make no mistake, the dangers in the horizon are still there, it is not going away because the market has recovered. In the meantime, it is a trading environment on carefully selected stocks (with good technical and fundamental outlook) with quick profit taking approach.
