the most worrying sign about last night trading was the divergence of the falling Euro falling market trade, for a couple of weeks now the currency market was leading the equity market but the last 48 hours or so we have seen a closer correlation to the oil/gold markets leading the equity markets.
looking from a technical perspective we are likely to see the XJO fall into the 4000-4100 range before deciding whats next, what has been alarming is the speed of the decline, I thought we would see a steady grind lower over the next couple of weeks rather than the possibility of that target band being hit early next week.
there is no doubt there are some mid cap miners that present excellent fundamental valuations, but until market sentiment calms down it is better to stick to the intra-day scalping rather than the higher risk stratergy of short term overnight holds hoping to catch a short term market reversal.
I'm not entering today's trade with any pre-conceived trading plan and will react to what opportunities present themselves.
it is important to remember "the market can stay irrational longer than the average trader can remain solvent" so be careful out there and don't assume that because a stock looks cheap today it can't get cheaper tomorrow.
hope everyone keeps a level head today and doesn't take on any un-needed risks.
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