How will today end? We are at crash-signal levels now. Will the indices recover to safe levels again like last week? I bought some calls yesterday near the day's lows and managed to make a little bit of money, but I certainly would not dare to do that again today. Never mind Russia, that's just a pretext (see below), there are much darker clouds on the horizon. Japan is close to cracking. And how long will the Hong Kong administration be able to hold up the market? If several of these factors coincide, today's action so far will look like a mild test run. I guess I should have bought some puts on Tuesday, but it may not be too late.
I see, another intraday rally coming up now.
Good trading/luck to all.
Phil
Excerpt from the WSJ:
Alfred Goldman, director of technical research at A.G. Edwards & Sons, said bearish investors are using Russia's woes as an excuse to create an "apocalyptic environment" on Wall Street. He believes the U.S. market's reaction to Russia's economic crisis is extremely overdone, in light of the limited exposure of U.S. multinationals to the Russian economy.
"We do no business with Russia," he said. "What's going on in Russia is just a continuation of the deteriorating economic conditions that have existed for years. But [the U.S. market] is in a correction and that leaves us vulnerable to bad news."
P.S.: Bobby, a weaker Mark/stronger dollar is usually bullish for the German stock market, since the German economy is export orientated. |
