world economy, page-16

My modelling shows that XAO shouldn't go much below 3800 even if Greece defaults. This of course is a ridiculous assertion (given that I'm a nobody), however I stand by it. If we go under 3600, then next support could be just below 3000. For this to happen, something big would have to be up, like the Eu-UK-US scenario I discussed in posts a couple of months ago. As such, I'm riding it out for now and am looking for buying opportunities in undervalued stocks when the time is right. This market is a traders paradise at the moment IMHO, and there would be many out there making a motza despite the doom and gloom speak. I'm still hopeful that DJIA will hold about 12,000, which would be bullish for our market IMO. Might be catching falling knives (who knows...really), but am prepared to take the risk for the right stocks. We are in margin call territory now (with the rate of the fall), so finding true bargains (even for short terms) is a real possibility. Tricky and risky, and hopefully my modelling will help.

WRT SEA, we are quite cheap now, but I'm holding and not adding any more as have a decent number already. I won't be selling unless the fundamentals change significantly, as I believe that oil price is resilient due to increasing population and a lack of true alternatives ATM.

Good luck all. Hopefully things turn around soon. Interesting how many $$ have been wiped from global markets relative to Greece difficulties and the sums involved. The word "overreaction" goes through my mind (as Greece should have been factored in/the election results were expected from early polling well before markets turned), but then again, Greece is "now" and markets trade the future, so what do they know that we don't know...

Hope this makes sense, a bit of quick post.