xjo weekend zoomba lounge, page-149

Sarkozy has stated that there is no other viable option than to continue to bail out Greece. Common sense really, the pollies have finally realised that it is 2008 again.

Traders and hedge funds have been trying to front run the Fed's bond buying program hence the large sell off in gold and commodities. Moving money into long-term treasury bonds. Keep an eye on US inflation figures. Bernanke will be forced to start up the printing presses if consumer spending is poor leading up to Christmas. i.e could be as early as the start of 2012 depending on how bad things get.

I personally feel that sentiment is so poor right now the risk premium incorporated into valuations on the XJO is unrealistic. The US indices seem overvalued to me though - can't really reconcile the disparity between the 2. I think despite the volatility in the short-term you'll continue to see a rotation into industrials from resource stocks. Primarily a function of our falling AUD.

The market can definately fall from here and with the amount of fear in the market it wont take too much, however for all those looking to liquidate long-term positions the market usually recovers quickly from a deep sell off and you'll need to ask yourself the question whether you'll actually be able to buy back into a fast rising market possibly above where you sold for.

Remember buy low and sell high and precede with caution all those dabbling with leveraged CFDs.

As always do your own research.