moolamanic's - fear phase - wednesday, page-63

100 point reversal on the CAC, 150 points on the DAX and 40 points on the SPX in one hour of power is usually enough to tear my hair out, but I can't say it wasn't expected.

I note two things:-

a) The market rallied on news of bank recapitalisation plans.

b) The SPX made new lows, but bounced of the 1080 region.

Perhaps a decent relief rally on the way, if European Zone tonight holds up and there is follow on buying. But doubtful.

My breakevens for my shorts are roughly 3050 on CAC, 5575 on DAX and 1175 on SPX. I shall ammend my stop losses to 3% higher than breakeven. Not counting of course the trades in between that have made a little warchest.

That puts my stops at 3160 CAC, 5775 DAX and 1208 SPX.

I am on offer for 2950 CAC, 5450 DAX and 1248 SPX - 1 parcel each on CAC and DAX.

This rally should not last past Friday morning.