First let me apologise for the sparse and intermittent postings on my Blog. A combination of work, school holiday break and most recently some minor health problems including a surgical procedure yesterday have limited my ability to write regularly. This should improve now that I am recovering and as we enter the Q2-2010 reporting season.
I have been bullish since the recent “correction” not double dip started with the problems in Europe. I saw the correction as being long overdue from the rally which started in March 2009. The correction was also technical with many major indices cutting down through their 50, 100 and 200 moving averages. The VIX index also moved up sharply when the European credit crisis started and has since come down to a comfortable level in the mid-20s. Remember I highlighted that a sustained fall in the VIX below 30 would be a good signal to slowly consider coming back into the market. Its now at 24.43 (see chart below).