Will this rally continue much longer?

Marc Faber is telling his clients to take a vacation now. But even he is acknowledging that this rally can go much further, on virtue that a lot of money has been printed. In his latest blog however, he warned that the final crisis is ahead of us. If you pump money into the system and you create large fiscal deficits, you create volatility. We've seen an intermediate low in March, we'll rally for a year or so or maybe 18 months -- the ultimate crisis will happen much later, and the ultimate crisis would clean the system.

Singing almost the tone is Nouiel Roubini, who said that the worst is behind us. However, he later issued a statement that "despite those reports - however - my views expressed today are no different than the views I have expressed previously. If anything, my views were taken out of context." It seems he has the same reservations as Faber.

Perhaps, Stefan Keitel of Credit Suisse aptly puts it, saying "Everyone is expecting an equity correction and a big 2H rally is not the consensus. Global equities will continue to "surprise everyyone by moving in a steep uptrend without any significant disruption till the end of the year. This is due to massive cash hoards of under-invested invetors re-entering the markets.

Bob Doll, of Black Rock, states "in our opinion, however, the cyclical bull market that began in March has further to run. We do not believe that stocks have fully discounted the possibility of an economic recovery, which means that more upside to the stock market should be possible."

Actually, this was congruent with my earlier belief that stocks would rally till end of the year, until the fake break down in the S&P and Dow. Fortunately my sell stop orders were not triggered.

Against this current backdrop, and the current uptrend, I will still look to long equities. But, with prices already so high, what are the options left?

The best option is perhaps to buy on correction. A check on several stocks revealed:

My old friend, Sino Ocean, is showing signs of reversal after its recent correction, but on modest volumes. Beijing Capital Land is also showing very little volumes on upticks. Hence, no incentive to enter both.

On the local front, the STI has set a new high for the year. The strongest must be Wilmar which is now cents away from its all-time high. However, the volumes are very low. KepCorp is also up, but on lowered volumes. Only Capitaland seems to be higher on above average volumes.

Should I therefore buy? I think I am buying on increased risks. There is now a real risk of market correction, even if market trends do not reverse. As Simon Liew of Frontier Wealth Management puts it, "My current advice to investors would be to exercise patience before committing money." At this stage, I have nothing to buy, but wait for a more opportune time.