I would be entering long positions with extreme caution right now, wall street is shooting the lights out, yet european stocks and the JSE are teetering on resistance levels. A change in sentiment in the US is going to drive us into a big correction, IMO. Unless this Irish thing is really impacting european markets?
ChartAdvisor.com has this to say: Traders are now facing a dilemma. The markets have been extraordinarily strong, but are now faced with the possibility of a correction. It is still too early to know if this is simply a few days of selling or the beginning of a deeper correction. The price action in the leading ETFs like QQQQ and IWM are suggesting a shift in sentiment and could be hinting at a deeper correction. It is important to note that the markets remain technically sound so far, and traders must simply be patient and wait to see how the markets will react in the coming days. Despite the fact that many names are well off their highs, the markets are still quite vulnerable to more selling and aggressive buying is likely not the best course of action right now. The bulls have been conditioned to buy each dip and at some point that strategy will likely be punished, even if only for a few weeks. The safer play is to sit back and let the markets digest the recent selling and see if a more clear pattern emerges.
I think the european stock are only playing catch up with US, since they are on average 1,1 pc behind in growth since september 1. Pc 11.1 plus for DJIA and 10.0 for Europe50 index. That could explain accelerated growth nowdays. Also, they dipped at the beginning of this year, more than US did. Correction is ahead, there always is, question for us is when and how much. If chinese get hang-over after their New Year celebrations, we may have a big one.