Today’s financial market is very sensitive to any bad news & things become worse if some responsible person began to give some irresponsible opinions. Let consider German chancellor who said this week that euro is facing “ an extraordinary serious situation ” not only that she describe the situation as “very worrying ” & her finance minister said that fate of EURO is “ at stake ”. Now will not these remarks make the market worst ?
But the impact is not limited against US$ but it is helping to fuel the rally in Japanese currency across the board.
In one of my previous writing I was telling that market needs an issue to be down. There are many, if not, there will be. Just what matters is the timing. Now Korean tension is such one of that. Now between the Chinese inflation &
debt problem it suddenly appears & helps the sell-off. Let see market around the world. Ireland
Week ended Nov26
Week ended Nov 19
Now the market conditions can be understand from the news of IPO cancellation by bluestar adisseo in Hong kong. In spite of some good news from
there is no change in market condition. USA is also facing a problem related to insider trading, the govt charged an employee at an expert network firm related to leaking confidential information. USA
Oil jan future rises 2.80% at $83.87, some sell-off came yesterday because of euro zone problem which pushes dollar up.
Now in Indian market in between the episode of telecom scandal a new headline appears that is bribery case related with loan. Few arrests were made by officials from different cities & name of few companies come into news. There is a talk in financial world that when bad news starts to come it just come one by one & takes long time to end. Due to this bribe case those companies were heavily corrected in market. Overall many stocks corrected quite a lot. Some even corrected up to more than 25% in a single day.
Being a stock-trader I find little bit obstacle while trading in Thursday & Friday , though there were lot of chances after those falls but value were decreasing in such a fashion that many times it was very risky. But we know we made lot of good trades in last two days.
Dow Jones is getting good support at 11000 & in coming days it is very important to look on it, what move it takes after those reports will come. 5700-5750 is crucial for FTSE. This week Chinese stock has not corrected too much as well as Japanese market which is still overbought in short-term, but it is still low from it’s April high. So coming days will be a test for these market as well as for other emerging markets.
Now if we forget for a minute that whether it is a market crash or just a correction then we can see that some stocks are very cheap. Now is this and end of the rally, may be not. Unless the domestic matters as well as Chinese rate issue, the Korean tension & European debt problem, also some important events are coming from USA market such as home sales data, employment news, T-bill auction e.t.c if these things become good then we can see some better things otherwise there is a danger of moreeeeeeeeeeeeee.
But it is true that -- “ A Dil mange more ”.
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