Markets around the world were led into a hole of bottomless pit as it crashes yet another trading day. On 24 October 2008, many markets had fell to historic lows and there are even countries fallen into great debts and nearing bankruptcy.
Over in Asia, STI, Singapore Bourse saw a drop of 145.39 or a hefty 8.33 percent. It is many days of free falling in Asia Markets. Banks and Financial amid being trashed down by the panic selling are at the same time trying to be on the same page with the economy by down grading stocks which led to further indiscriminate selling by short sellers. As there were a few shorting penalty in place, many have gone for margin to execute shorting in order to earn in such times of market disorder. Both Sensex, the bourse for India and Kospi, the bourse for Korea saw a drop of more than 10 percent. An alarming drop causing further fears that global economic system could drifting towards a very wrong direction.
However, investors and traders saw some light or rather consolation as Dow Jones Industrial Average Index, DJI falls by a 300 odds points which is a considerable good news in light of the past few days of relentless selling. Selling pressure actually eased on the Friday trading as Dow Jones closed at 8378.05 points.
Light Sweet Crude over at NYMEX had fell further to $64 despite efforts made by OPEC to cut production. Speculations were on OPEC to cut production further to ease free falling crude price.
In terms of technical analysis, the markets seemed to be on a sharpe declining trend. Bear trend had already been running strong since mid September. My personal sense is that even big chips or blue chips are battered down badly and even lower than their company’s earning potential. This is the result of overly panic selling. The chart of most stocks have seen to be exhausted and buying due to bargain hunting had quietly increased. The stage in my most humble opinion is set for a technical rally and it is going to be technically substantial one which will on the other hand caught shortist by surprise.
The above are of personal opinion and not at all an inducement to trade.