jeudi 3 juin 2010

Today's - The system remains very shaky, sell the rallies and buy the dips...?

By small and large french politicians and mainstream french Press have once more ridiculed themselves big time... over the past few days, the population currently under their administration having a good laugh... when the "hummanitarian" equipment was exposed....


Sharp rise in use of ECB deposit facility

Bond markets idle

Debt Crisis May Cause Run on Europe Banks: Strategist

Banks Deposit Record $394 Billion With ECB, Avoiding Loans to One Another

And here is the problem

Sentiment improves on Wall Street bounce

The risk for the bulls, however, is that a string of supportive fundamentals can easily be rendered swiftly impotent in the face of “headline events” such as last Friday’s downgrade of Spain, which should have been expected but nevertheless had the capacity to shock on arrival.
Providing greater heft to the bad news is classic bear market psyche, and as Maurice Pomery of Strategic Alpha in London says: “The markets are so skittish; the slightest bit of news is seeing huge swings.” Or as Chip Miller, strategist at UBS in New York puts it, “Volatility is volatile right now.”
John Schlitz, chief US market technician at Instinet, said that long-term investors are intrigued by such good days, but still aren’t convinced the bottom is past.

Homework :

Volatile? and sentiment? If you were given the opportunity

  1. to assess a market, sentiment driven, is naturally and can only be volatile, would you? Explain.
  2. to compare behaviours, LT investors(Warren) and traders, would you reach the conclusion, the higher the volatility is, the higher the number of sentiment driven market transactions (bullish or bearish) is showing traders outnumber by a lot LT investors?
  3. to be a legislator, what is the side of the issue you'd choose to take, ban proprietary trading and hope for the best regarding volatility or work a legislation with incentives to rebalance the ratio traders LT investors attracting small LT investors in numbers? Explain.
  4. Has the crisis shown big gov, unlimited unfunded liabilities take an unsustainable toll on the economy that regulation on financial institutions will not solve? Explain.

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