"LIFE'S A BITCH!" cursed the bear in the face of a noisy stampede of bulls

For weeks, they (=the bears) felt safe and in control: fundamentals were 'deteriorating', reports mostly negative, investor sentiments that of old trembling men.  And then came the turn, as always when most are giving in to their worries and concerns and run for cover.  

It took two days of dithering but the liberating move is happening right now! 

I must say, some learned colleagues in other FA firms have the uncanny gift to make their call just when markets are turning the other way, for the second time in row! The last time in mid-May they wanted us all to buy into treasury bills! Yesterday, the expert steadfastly proclaimed on TV that equity markets can only get worse. These calls may not be wrong for the applied strategy with their portfolios but it sure must be frustrating for clients who have a good appetite for risk.

It also goes to show that allowing for consensus to influence your investment decisions in markets like these does nothing much for your portfolio.

I happily admit that the last 3 days were a trying time for me, too, having opted for the more bullish outcome.  It just did not seem ready to come together, - until this evening around 10:00h.

This is the picture right now!

The DJIA is up more than 2.5%, in tandem with the European markets. This is one concerted global effort to get the rally back on track.  

Now, who...??
Look at the next graph!

!0:00h in New York (above chart) is 22:00h in Singapore(chart on the right): Just before 22:00, gold prices peaked at $1254 an ounce, then sold off. Prices are back down below 1240 again.  

So what happened?  The 'big boys' are back in the game. As quickly as they raked in quick and sharp profits from their gold investment they reallocated the proceeds towards a phenomenal stock market rally, all within the space of about 3 hours!

It's not what they can do that is interesting, - we know that by now. It is the fact that they are back in the markets that is important, because without the support from the big boys, September could easily become another bad statistic. But for now and a few sunny trading days, the adrenalin is flowing again in the traders' veins. 

From a technical perspective this means that the positive scenarios I had outlined last week are back on track: the Indian summer, hot and sizzling or warm and comforting. I take it any which way. I will say more about this move toward the end of the week.  Good night!

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