Tom
Scollon
Chief Editor		 The markets moved higher – “move” being something of a slightly dull term. The markets showed that maybe from here it is going to be something of a crawl to the top wherever that might be, but increasingly the experts are saying that is not far away. Who knows? Although the number of pundits who claim the market is overvalued is now gaining in number. And this is confirmed technically as many markets start off the day with energy only to fade as the day closes – a sure sign of caution and indecision.

But one of the interesting aspects of a market at these times is that we see stocks at very different stages of their price cycle. In the month of October the Australian market rose a little over 3% but there were many that gained considerably more and there were many that lost major ground and the variance was greater than plus or minus 30%.

I spoke last week how many stocks struggle to rise out of that Elliot wave 4 pullback. Many more stocks are falling into this category. They will continue to vacillate until a fillip gives them another leg up or bad news on the horizon sends them south.

I continue to trawl the market and find value but often getting a bid in before the stock takes off is not so easy and it calls for even greater patience not to chase a stock to an absurd level. Even if the stock has staying power it will pause at some stage and that is your entry point if the stock is still strong and it is merely having a breather.

Tom Scollon
Editor