Friday, Jan 22, 2010

If you're going to panic, panic first

FT: Investors fret over Obama’s bank assault

19:30 GMT. Collateral damage from President Barack Obama’s battle with the banks was strewn across the global financial theatre on Friday, as traders feared that similar proposals could be adopted in other trading centres and investors worried about the impact the move could have on fragile market sentiment.

Posted by devo @ 09:41 PM (597 views) Add Comment

5 Comments

1. techieman said...

yep been watching. FTSE after hours got down to below 5200 - although its now 5215 (thats against a London close of just over 5300). I doubt that we will open on Monday with a gap down of that size... but who knows! As i said earlier FTSE should lose momentum @ the 5200 level, although i only liquidated because i have taken some S&P shorts home.

Of interest is this : "And those bulls hoping for succour from the US fourth-quarter earnings season will have been disappointed, again, by the reaction to Google’s numbers overnight. The internet company that is a verb smashed analysts’ forecasts but saw its shares fall 3.7 per cent."

That tells you that sentiment has probably turned.

Technically the Dow closed below 10,200 and the S&P below 1100. Closed at the lows of the day and the week. Thats really not good, even if it may be a little bit overdone on the very short term. The VIX too is a bad sign for the bulls.

Friday, January 22, 2010 10:05PM Report Comment
 

2. devo said...

1. techieman said... The VIX too is a bad sign for the bulls

Yes, It's Happening; VIX Surges To Over 27.50 As Panic Grips Market

Submitted by Tyler Durden on 01/22/2010

http://www.zerohedge.com/article/yes-its-happening-vix-surges-over-2750-panic-grips-market

Friday, January 22, 2010 10:11PM Report Comment
 

3. devo said...

and

Jan 22 (Reuters) - The CBOE Volatility Index .VIX, known as Wall Street's fear gauge, capped its biggest three-day run in nearly three years on Friday as U.S. stocks were hit by concerns over proposals to curb bank risk-taking.

http://www.reuters.com/article/idUSN2215503720100122?type=marketsNews

Friday, January 22, 2010 10:14PM Report Comment
 

4. techieman said...

Yes Devo, I'm not being critical when i say this but everyone can see what its done.... the trick is being able to calculate when and to what extent it will do it!!!

This was on the 7th January : http://4.bp.blogspot.com/_TwUS3GyHKsQ/S0ZTXzhsvqI/AAAAAAAADa8/vch1H3-HUvo/s1600-h/vix60.png - its a VIX 60 min chart.

The "ED" is an "Ending Diagonal" pattern, so called because it ends the previous (in this case downward) trend.

Friday, January 22, 2010 10:27PM Report Comment
 

5. dill said...

Never thought that something as loud as this would reinforce the bend. Top was obviously in (with nowhere to go), and everyone wandering aimlessly. Now the shorts are well and truly pencilled in, but with lots of volatility to come. Lots of scope for experienced, informed, and very brave Traders ahead. Otherwise - steer well clear.

Friday, January 22, 2010 11:44PM Report Comment
 

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