Agree it was nice to see the DOW in a green finish and holding onto some gains instead of what the futures was predicting........I thought it may start to blow over next week but if it wants to do it early then I'm happy.
Good news is that the SPI futures are up 58, so we should be getting that catch up bounce overdue since Thursday but withheld due to this noise....interestingly the VIX is back at 20 and if I use that as a historical guide then we are in for a rising market next week...
Large put positions were being traded yesterday with a strike price of 32.50 and 33 so it will be interesting to see where this is pushed to close on options expiry Thursday....
LEngming,, I agree with the risks you outline,,my theory was negative outlook near term/short, like you I agree that something will have to give to change the market directions in the future but I'm not sure if those risks will play directly into the market numbers right now, for example (whilst undecided) the market started to slide before the GReece media hype was released and think, thought it was more to do with the US Defecit and jobless recovery.....
Question,,,whilst China , India and others snapped up the gold from the IMF last time, when they purchased it was as a hedge against their US Treasury holding which often times were depreciating almost immediatley after they were purchased due to the sliding dollar, casued by seemingly reckless spending by US GOV.......eg USD vs Euro 125 sliding to 152........now that it has reversed (excluding the reasons/theories in the last 4 months or so) do China and others need to purchase at the same rate? or have they gone from hedging their paper reserves to hedging simply against paper? I havent heard about any filings or announcements from china this year, what are ppl basing this China "continuing" to buy Gold on?
I see that the reversal in Gold in the last week also co incided with the US filings showing that two reknowed professionals, Soros and Poulson had increased thier Gold Holdings in the fourth quarter 09, whilst this is comforting, in my mind its historical and they could be selling right now for a sizeable profit........Im unsure as to why the FEAR premium has risen so much, is Greece, such a tiny percentage of EU GDP going to cause that much market turmoil?
NCM Price at posting:
$31.80 Sentiment: None Disclosure: Not Held
