Rally to fizzle and out?

STI continues its rally today. I’ve starting taking profit instead of adding to any of the positions, even clearing some slow movers at breakeven instead of holding out. My main concern? – The rally is going to fizzle out soon.

The fear is that the rally isn’t going at a slow and steady pace, but rather at a breakneck sort of speed, with some of the bluechip counters breaking through previous highs. While some may take this as a new upstart, I have my concerns rooted in the fundamentals of the economy. And while stats points to the equities market usually leading the economy by 4-5 months, the economy is NOT set to recover till end of the year at the least, with analysts calling for a even worse meltdown in 2010.

So on the safe side, it’s good to rake in the cash and go back to the observatory tower again.

What else could they write about?

It’s yet another hot, humid and scorching afternoon as I sit here at Starbucks @ Tanglin Mall sipping coffee and reading the papers.

“US manufacturing hit..”

“Singapore GDP worst in 7 years…”

“Job cuts hits China, India & Russia…”

It’s bad news time at the papers again. But I’m thinking at a time like this, what else could the journalists be writing?

But there turned out to be some interesting reads… Teh Hooi Ling on New Year Resolution is amusing and cheering, and James Saft talking about us all being in as a Madoff investor packs more brain than 80% of the paper contents.

All eyes really though, are probably on whether the rally will persist next week. I think?