Todays rise came as no surprised. Yesterday was a bloodbath. But...

Todays rise came as no surprised. Yesterday was a bloodbath. But while todays close was a mini correction overall, todays open was a day traders delight. I dare say, they saw this coming a mile away. And my only regret was that I didn't wake up early enough.

What needs to be put into perspective is the slow grind down after open. Some Blue chips closed only marginally higher than yesterday. I think that after open, some sense was restored onto the market. This is a new economic environment and stocks are being revalued accordingly. This ought to be explained.

What people should realize is that rates cuts will not make an impact in the Short-term in practical terms and has only a mild impact on sentiment that will wear off in a few days. What will be the litmus test as far as I am concerned is businesses that need to refinance. Are they going to source from the US given that rates are cheap? yes is my answer! They are going to try. Does that mean some will miss out? yes is my answer! Lenders are going to be picky as hell. Gotta minimize risk at every turn from here on out if we are going to ride this storm unscathed. Does that mean those that miss out are going to be in a pickle? Yes! Lets look at MFS and challenger for example. They have literally hit a brick wall and cannot rollover their debt. One year ago, it would have been business as usual and the rollover facility would have occured without a second glance. Businesses cannot function without credit. Some Lenders are going to pull the pin to save their own backsides regardless if these businesses can prove on paper that they are still viable. Some lenders might even short the stock while they do the dirty. Will be a while until the free flow of credit is like what it was at its heights a year ago. So going forward, this year, I can't see them enjoying the kind of growth we were use to last 4-5 years.

Bargains are going to present themselves in the next couple of weeks for you cashed up value investors. Lots of margin loans gonna be called so don't worry, there will be plenty of forced sellers. I would say that it would be best to remain calm and patient till those oppies come, but don't be too greedy.