Upfront Investor Share Market Report 26/10/09

http://www.youtube.com/watch?v=WOq1E5hr-4Q

It would appear that despite the severity of the pull back leading up to the low in March 2009, many investors have failed to learn from the mistakes of the past. During the bear market leading up to March of this year many investors were overwhelmed with fear as they watched their investments fall up to 40 per cent with some as much as 70 per cent. However, with the market conditions being so bullish over the past 6 months, investors have now replaced their fear with greed and turned to speculative or penny dreadful shares in an effort to make quick profits.

Over the past few months, however, the market has risen at a speed far greater than what was evident in the run up to both the 1987 crash and the sub-prime meltdown. Given this, the market has the potential to fall heavily, which could result in many investors reverting back to fear and experiencing the losses they are trying to avoid.

So what can we expect in the market?This week the market has unfolded in a similar fashion to what occurred in late September, where we had a mixture of up and down days as the buyers and sellers tried to decide on a direction. This could be a signal that at least a short term high has been achieved and that the market is about to move down into the low I have been expecting in November.

That said we know that the market has been bullish and we need to expect that it will continue to do so until it indicates otherwise. Therefore I am still expecting the market to rise to between 5000 and 5200 points between now and mid-November before it falls into a low in mid to late November or early December.

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