Im sorry i disagree completely. Buying today imo would be madness, even if the market pulls back up, it will pull back from much lower prices. I would look to buy after a lot more of a pullback.
But i could be wrong.
Seems to be the same pattern recurring in the market...push higher, consolidate, down day, wash out the dead wood, then trudge higher again. I removed my stops this morning as I have been caught in the white wash to often with this market behaviour. Stops will be replaced for Monday. Risky stratergy I know, but seemed that today was always going to be an over reaction on the open.
Seems to be the same pattern recurring in the market...push higher, consolidate, down day, wash out the dead wood, then trudge higher again. I removed my stops this morning as I have been caught in the white wash to often with this market behaviour. Stops will be replaced for Monday. Risky stratergy I know, but seemed that today was always going to be an over reaction on the open.
Well... I'm out. Gold stocks only. A correction was due and this is the catylyst.
If I'm wrong, I'm sure if I'm patient I won't get back in too far from where I left.
Strengthening USD? Whats that all about.
That surely is not the most prudent risk strategy? The Aussie market hasn't been able to move up even with the DOW making new highs, it will be very surprising if we bolt up Monday. Esp considering that US is half day tonight and unlikely to provide clear leads.
My punt is that the attention will be turned next to those Eastern EU countries who are about to go bust.
Not prudent on face value, however the end result should be the same unless if we gap down on Monday. I knew the intial wave of selling would knock my stops out, and when the market has news like this before the open, 9/10 the lowest point of the day with be the open. Stops will be replaced tonight under the lows of the day. It still comes within managing my risk given that I have kept an extra allocation of risk up my sleave on each purchase lately, so they I can try and move my stop away from these short down moves which are just taking me out of far too many profitable trades. I will see how it goes, this is the first time I have attempted not buying my full allocation of shares (i.e normally 1%, I have now done .7% and have left .3% to allow the stop extra room if need be). I will quickly learn whether this is suited current market conditions or not
» BREAKING NEWS » News
Stocks plunge on Dubai debt news Australian shares have plunged in the wake of the government of Dubai asking for a six-month debt moratorium for its investment vehicle, Dubai World.
Austock Securities senior client adviser Michael Heffernan said the market wasn't too upset and he was confident that Dubai would not default.
"If it was anybody I owed money to I would love it to be the Dubai royal family," he said.
"They have oil dripping out of them and have plenty of dough pouring into them.
"This doesn't affect whether shoppers going to Woolworths or Safeway - and they're both down and all the banks are down - and I don't think they have any extensive lending to the Dubai royal family."
Mr Heffernan said the drop in the market meant it would be a buying day, with retail and banking stocks selling at good value.
He said Leighton Holdings and WorleyParsons were two companies with exposure to Dubai.
Hi sammy, we fell 40 odd points after the open today but bounced straight back up; If you're not looking to trade intraday then I guess thats fine, but IMO you should haev let yourself get stopped out, reasses; and then possibly re-enter.
Cheers
I tend to get a little uneasy when the doomsayers are no where to be found, is all. Perhaps they're all long.
Agreed, was just trying to find innovate ways to stop my current draw down. Also re-entry is a lot harder mentally than defending positions on a down day.
Back on topic, not worried by Dubai. Dubai was always a bubble, I would hope most market participants were smart enough to price that in. Nevertheless, Abu Dahbi has over $150b cash in reserves. Considering they only have a GDP of $37m, the ramifications for us should not be too large. I'm just glad I don't own leightons
I tend to get a little uneasy when the doomsayers are no where to be found, is all. Perhaps they're all long.
I just took a peek at the Hang Seng index...
DOWN -666 points
Omen??
Errr.. make that -765 after another 2 mins....
Please another 20% drop then follow by margin call and another panic
I been saving cash since August
4 stocks I like to have but people need to start throw them out of the windows because of margin call.
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