Main stream media "Buy the dips!" and "Sales are looking better than last year" will be pushed all day long tomorrow.
Upon reading more news coming out on Dubia, it seems that the Debt to be refied is very small, "Dubaiâs debts is comparatively modest at $80 billion (£48 billion), " This is a small amount of money compaired to the overall "Defaults" and Wiping out of US Banks since the start of this back in Q1 The UK has the most exposure and will take most the hit if the debt is defaulted on. However, I doubt the debt will not be refied. IMHO US markets will not react to this as a long term trend reversal, just a short, light volume down open. The Emerging markets have reacted and flight to GOLD was their first safty. The US dollar could be the next flight to safe haven, or even US gov. Debt. The Dumb money was flowing into Emeriging Markets, thinking that it was safe. Now, the money is flowing back out of emerging markets into other vehicals. Question is, who will be left standing when the Musical ends. The game of musical chairs has now reached it final point, come full circle.
The US market needs any reason to pull back 10%. The market Has priced in a V when most likely we will have a L recovery. The DUBIA news could be the start of the reversal, even though the amount of debt being refied is very small. IMHO, the shopping numbers on black friday will be very low, miss estimates. This combined with the GDP number and the Housing data going forward will start the slide into Jan/Feb. How deep the rabbit hole goes is anyones guess as the US market has run up on light volume. Gold, Oil, Short term debt should do very well in the next few months.
and yes, good point. Bankruptcy's on the Weekend. Default news on Holiday. Hummm......and traders really think they have a edge, let alone a "Free" Market.
It shouldn't matter if you trade short term, all you need is a situation when volatility is about to increase.
<img src=http://www.telepresenceoptions.com/images/Tina_Robot_girl.jpg> You thought she, oops, it is holding a star wars booklet. No way Jose, it is a manual of all manuals, how to screw human psychology or how human psychology screws itself or how...you know what I mean I call this model - A TradeMate (TM)