Dear all

Since my write-up on 23 Dec 2018 (see HERE), S&P500 has jumped approximately 7.5% since then. In fact, S&P500, after touching an intraday low of 2,347 on 26 Dec 2018, it has risen 249 points or 10.6% to close 2,596 on 11 Jan 2019.

Is this the start of another upcycle in equities? Should we chase the rally?

Below are some of the positive and negative points which readers can take into consideration before we can arrive to a well thought out answer.

Potential positive points supporting the continuous rally

a) Fed may acknowledge rising risks to their interest rate hike and shrinking of balance sheet (which Fed Chair Powell said on 4 Jan 2019 that he will be flexible on interest rate);

b) Most U.S. upcoming corporate results to be stronger than expected. We should have a glimpse this week as Bank of America, Citigroup, Goldman Sachs,