17th May 2006 Nobody knows anything. I was reading the FT yesterday and some analysts [being paid high salaries by the investment banks] all made contradictory statements about the three day mini-crash we've just had. Some said there will be more blood on the carpet; many said they "saw it coming" considering the US deficit situation, high oil prices, chinese revaluation issues etc. Yet what happened today - a modest rise - and they're all in rationalising mode, some almost reversing their arguments. OK one day is too early to tell where things are going: the only obvious thing to me is that everyone's jittery. I woke up today to see the charts in the green zone in the morning and then a green/red mix in the afternoon. If we are climbing back up, it's a good time to make a few bucks - but i'm using Limit Orders in case there is another dip and I can get the stocks at a really cheap price. So i'm hoping there will be another mini-crash where my Limit Order will kick in and then another modest rally where I'll cash in. My only worry is that there won't be another mini-crash. I get the feeling that we've adjusted to the fact that there will be interest rate hikes and everyone's factored that into their buy decisions. Learn more Click to view the new online newsletter: http://www.wanttosaysomething.com/ ********************************** You are free to reproduce this article as long as no changes are made, the author's name is retained and the link to our site URL remains active. |
