Global stocks remain in an uptrend and it appears as though this rally has further to run. It is notable that after a brief pause, Wall Street has resumed its north-bound journey and on Thursday, the S&P500 Index closed at a 52-week high.

The Federal Reserve on Wednesday increased its QE-ternity program and indicated that it will keep interest rates unchanged until the US unemployment rate falls to 6.5 percent or the annual inflation rate climbs to 2.5 percent, claiming that these yardsticks will make its operations even more transparent and give consumers and businesses ample time to prepare for rising interest rates.

My trend following system gave us a ‘buy’ signal a week ago. Since then, the market action has been choppy, but the major US indices are showing signs of strength.

The world’s stock markets are in correction mode and this is not the time to be invested in common stocks.