This Week's Action - 08 Aug - 12 Aug 2011

[golden]

Seems to me the system needs gassing up again

Take it easy out there guys


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[cyclops]

10 minutes to this weeks open .... NZ down 100 - ~ 3% .... US futures recovering to down 200 - 1.8%. This is much better than it looked an hour ago.

[golden]

Mine are green today........and that's not from envy!


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[alank]

Hey all - back to seeing how the smart traders are operating.

As mentioned elsewhere, I and better half went travelling for a few months (Middle East, Cyprus, Italy) to spend some Aussie dollars while they bought something. Of course now the capital losses of the last few days has me squirming slightly that we spent our pennies so readily then!

What a night for US and European markets ... Dow down 635 points ...

Will there be further capitulation and a monotonic downward slide on the ASX today? Despite fastoy's reassurances that corporate US is in pretty good shape, and my feelings that Australian comapanies (particularly the resources sector) are now pretty cheap on most ratios, we all felt the same in 2008 and watched everything get much cheaper during many long weeks of "global deleveraging".

Any opinions?

Cheers,

Alan

[golden]

Now that's a recovery story. 1 min chart.


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[fastoy]

Ever the optimist, I was invited to join a US friend on her visit to her financial adviser just a few days ago. During the visit the subject of the billions of dollars in US cash accounts came up. The adviser told of clients who have $700,000 in cash accounts earning nothing. One rolls over his $700,000 each quarter and has collected a return of $183 for the year.

I have long given up trying to crystallise the increasingly complex events and reactions, but when that elusive confidence returns, there will be billions ready to pour in to the market at very short notice. I tend to think that the 'smart money' will move ahead of any obvious event. So once again for the umpteenth time, I'm listening to the market rather then the politicians and 'experts'. Did any predict the events of last two days?

[cyclops]

Who would've thought it

Apple rallies 4% to briefly surpass Exxon as biggest U.S. company by market value

[alank]

Aug 10, 2011 9:59:25 GMT 10 fastoy said:

the 'smart money' will move ahead of any obvious event. So once again for the umpteenth time, I'm listening to the market rather then the politicians and 'experts'. Did any predict the events of last two days?

Hey there fastoy! Welcome back from the USA.

Didn't predict anything myself but did hit the 'buy' button when FMG rolled back to around $5.20 yesterday - seemed like a potential support level from the charts - then was greeted by the welcome swarm that swallowed all the asks for the rest of the day. Of course, buying almost anything around 11.15 am yesterday would have provided rewards.

The swarm has subsided a tad today. What is the market telling us?

Cheers,

A

[alank]

Looks as if the TINO community is slumbering peacefully ... or else the market gyrations of the week have kept everyone gainfully occupied at the desk.

Ciao to all!

A

[golden]

Transfixed might be a better word Alan

"LOS ANGELES (MarketWatch) — France and three other European countries are banning short selling, with the moves coming after weeks of wild swings in global equity markets, reflecting investor worries about slowing growth, debt burdens and credit downgrades.

Belgium, Italy and Spain round out the other countries that will impose or extend existing short-selling bans beginning Friday, according to a statement from the European Securities and Marketing Authority late Thursday. The ESMA coordinates securities and trading rules among European Union member states. ........"

www.marketwatch.com/story/four-european-countries-impose-short-selling-ban-2011-08-11


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[cyclops]

Good to see you back Alan

I'm a bit thick ... I haven't heard one decent reason why short selling is bad for the market.
After this past week I sure know how it can benefit us traders/investors though, if I was strictly long I would be out of the market now and a lot poorer.
My short positions almost offset my longs so I ended up being only a small percentage down.
I managed to keep stocks such as Cisco, Proctor + Gamble amongst others. Both those put out excellent earnings reports and I am considerably better off because I didn't need to sell them.

The shorts are now gone so I feel a bit nervous but comfortable with it.
I feel like a dodged a bullet