Big Rally in Financials
Posted by Frugal on November 15th, 2007
This is an option expiration week. It’s extra volatile. Looks like a short term bottom in financials may be in. However, longer term is still a problem.
$BKX is up against some resistance, so I believe that majority of the gain is probably behind us. It should take some pause.
US dollar starts to fall a little. That should be positive for stock markets. Global stock markets are mostly synchronous. It’s hard to find a place to park your cash, when you don’t really want to be in cash.
The movement of markets is quite violent. I suggest that one should simply position oneself for the proper/suitable asset allocation, and don’t trade too much. If you do trade, you have to be really nimble, and make use of stop orders. It’s not easy to catch the exact top & bottom. And if you are caught in the wrong side of the trade, the violent movement can easily wreck your portfolio.
Be safe, and best luck.
More related posts:
Digg it Del.icio.us Reddit Furl BlinkList Newsvine Yahoo MyWeb





