Another very volatile day which combined with low liquidity has mad for some very big moves. Bund has reach all time highs and we had a 120 point spike down in the Dax on 611 lots! Watch below as I analyse the latest moves.
Thursday, 18 August 2011
Close position: SNDK
Closed out SNDK today at 34, it was very bad trading on my part, didn't stick to the rules, and paid the price as I took a 25% hit on this one. You live and learn...
Entry: 45.00
Exit:34.00
Entry: 45.00
Exit:34.00
Wednesday, 10 August 2011
Mad Market Volatility - Dax, Bund, Schatz, Ftse
Just put this video together around 30 minutes ago and since then we have come off massively again in stocks. We bounced off the near term support in the Dax at 5721 but after bouncing 50 ticks we dropped another 100, such is the volatility lately.
The video looks at some of the wide ranges we have had lately.
The video looks at some of the wide ranges we have had lately.
Stock buy: GILD
Taking a little punt on this one. Managed to catch the spike down yesterday and willing to hold this for a bit unless we start capitulating in indices again.
Entry: 36.92
Target: 45
Stop:30
Entry: 36.92
Target: 45
Stop:30
Monday, 8 August 2011
Stock Markets falling off a cliff
This looks like capitulation here. Aggressive selling, fundamentals thrown totally out the window and the whole thing looking rather ugly.
Unfortunatly I'm still long SNDK which is getting smashed, I'm hoping for some type of a big rally where profit taking occurs and we get a snap back in stocks so I can exit, as I think this has a long way to go. These snap backs can be as aggressive as the move down so be aware.
Bunds touched 134 again today, and Gold soaring to new highs, and on top of this we have riots in London, where it seems these thugs have just total disregard for the law. Things looking glum right now!
Unfortunatly I'm still long SNDK which is getting smashed, I'm hoping for some type of a big rally where profit taking occurs and we get a snap back in stocks so I can exit, as I think this has a long way to go. These snap backs can be as aggressive as the move down so be aware.
Bunds touched 134 again today, and Gold soaring to new highs, and on top of this we have riots in London, where it seems these thugs have just total disregard for the law. Things looking glum right now!
Saturday, 6 August 2011
Trading volatile markets
Cool video on actual traders trading the volatility over the past couple of days.
Watch The Wall Street Journal's A Trader's-Eye-View of Market's Wild Ride
Watch The Wall Street Journal's A Trader's-Eye-View of Market's Wild Ride
USA downgraded!
It was inevitable, and I'm glad that the S&P had the balls to do it, Downgrade the US that is. With no credible plan to tackle the debt, and with the republicans not willing to raise taxes on the rich like all the other countries, this is the result.
Here is the S&P statement:
"The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability." What to expect on Monday: " it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021." And why all those who have said the downgrade will have no impact on markets will be tested as soon as Monday: "On Monday, we will issue separate releases concerning affected ratings in the funds, government-related entities, financial institutions, insurance, public finance, and structured finance sectors."
Here is the S&P statement:
"The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability." What to expect on Monday: " it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021." And why all those who have said the downgrade will have no impact on markets will be tested as soon as Monday: "On Monday, we will issue separate releases concerning affected ratings in the funds, government-related entities, financial institutions, insurance, public finance, and structured finance sectors."
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