"Make no mistake this market is way overbought in the short term & due for a healthy correction, but the reality is that no one is going to sell the market, until a turnaround is confirmed. Many have tried to sell the market, only to see it rally back well above where they sold it (March 2005 & Octoner 2005, both of those -7% corrections were superseded by moves by market to fresh record highs) . As a result many in the past have been stung hard & even though they know the market has run too far, is slightly overvalued & in desperate need of a -10% correction – but still no one will dare preempt that move. Many said when the ASX 200 went through 4,000 a year ago it was ridiculous & again the same was said when it went through 4,500 – but now its at 4,800 and no of these instos are selling … What we do know is that the selloff is out there & it will be a really ugly one (-10% to -15%) – but from what level & when are the 2 big questions. One thing we do know is that like a gun slinger with his hand itching to fire his gun, many instos are sitting back with their fingers on the gun, trigger coked waiting to pull the trigger. "
