Pullback?

Last night, US released a few key news that will impact world market today:

1. Pending Home Sales declined 16% in November

2. Factory Orders rose 1.1%

3. GMAC expects $5B 4Q loss, selling mortgage assets

1&3 are very bad news while 2 is a piece of good news. As news#3 just came out an hour ago, it could be very nasty piece of knife that cuts through the global equity gain momentum.

News#3 could have lingering impact to the US stock market tonight. Moreover News#1 & News#3 are related to mortgages and assets.

Yesterday's crazy rally will have a T+3 this Friday. We'll see if this housing problem persists until Friday. If it does, it could be ugly for contra players but good for budget hunters. If there are too many budget hunters waiting, there won't be any sharp dip unless there is no budget hunters.

4pm: KLSE resumed rally in the afternoon. I guess the CNY rally will be strong this year. Hang on to your holding and you may see the light before CNY. The problem is that most people will sell before CNY. What happen after CNY?