This morning, in Japan, Nikkei average posted its largest intra-day loss so far this year (-3,3% right now)!!! (showing that a strong currency (here the YEN) was intially good for the Japanese stock market, but that when a currency gets too strong too fast, it is a negative).
Because gold is not a safe place to park your savings ... and because Japan's stock market, energy stocks, and big cap technology stocks have run up, where can we invest?... My answer: No safe place left, ladies and gentlemen!.
Stock market, in next few days, could see some serious distribution on increased volume,... break from its trending range, to the downside and look for resistance areas and finally a bottom...
When safe places are no longer existant, nervousness will increase, volatility will increase, and fear might resurface.... In other words, it is quite unlikely that bulls will prevail in short term.... BWDIK! I have been wrong before.
Not to late to raise more cash and look for some PUTs here and there, IMHO. I would not overdo it though, with PUTs and shorts, and would be 50% in cash as you can make serious mistakes during a downturn because volatility could be enormous.
Just IMHO and my 2 cts.
Good luck to all
FHG |
