What a wonderful month so far for markets a swing of near 6% downside in a week and a 4% upside in a day ,Credit goes to European Officials single handedly making the markets to dance according to there tune and also we yet to know the reasons for 1000 point swing of Dow Jones..rumors in market are mistake by iIbank in selling e-mini S&P worth 15Billion USD, large Europe bank liquidated its positions. and high frequency trading ..any way leave it...we will get to know more on it in few days..
So What exactly happened during the past week and weekend ? what made europe for the changes in there policy towards bailing out countries all the while opposing towards that idea. I guess this weekend will be recorded in history for sure. European Bank offered a trillion dollars package to weak countries? Will this solve the current problem? From where will they bring 1T $ ? Print Money.if so..haha..LOL..that will have ripple effect in coming days for sure ..if not ..Why didn't they do this much earlier? when bonds were yielding much lesser..Now when they are higher they are buying them..pretty bad i guess ..its like buying at high price and selling at low price...If thats not the case..then Markets are doomed to come down again...for now europe went up..but still there are problems around euro..i dont think in a weekend all there problems are solved ..May be am wrong..will see..
So what next for markets..inch higher for now until we see another blacksawn. If there arent any events like that then by default we have the great driver of our ENGINE ...yep its China..Many are suspicous of China coz they dont reveal much data to the rest of world and we have to speculate a lot on its conditions..
I personally feel China is the ultimate culprit for making Metal Prices ,Oil to go up in 2008 coz of Olympics it conducted which lead to massive cornering of metals...to build the stadiums,roads,infrastructure..and it drove Oil prices like anything coz it piled up huge reserves of Oil to use as backup fuel in case of occurrence of Earth Quake. Once the event is over we had a oversupply of commodities,Oil and it crashed. Now again if oil or metals to go up we need such a kind of demand...
So even without any real demand metals going up..means expect a fall in near future which is already happening in China..Thats why am bit worried of China Throwing a Bomb on us..Have to be carefull in knowing the next BlackSwan timing