simple: the market will do what will hurt the most. translated: when every man and his dog are short on a thin market watch out for a short squeeze limit up, perhpaps multiple days..... More pain has to be inflicted and those gains have to come back! No easy money for the goats! Maria
Short cover rally on fear of china announcing rate cut tomorrow. They do it on Saturday and no body wants to be short coming into the weekend.
don't think i buy that one. the market that had the most tepid reaction was the shanghai when it came back from lunch. one thing's for sure, a shit load of stops were taken out to fuel it once it got going. frankly, i'm lucky to have dodged this bullet. damn good thing i diverted my margin power away from holding HSI thru the break and to 'averaging into a loser' in the SGXNK. i won't do that 'average a loser' in HSI, but it is something that has worked pretty well (knock wood) in the n225. just hoping i don't piss away my return to near break even.....
Probably a short cover, but I'd be shocked if the market did not sell off to at least near flat. After that anything goes.
Asia reversed on the news that Saudi Prince AlWaleed bought $300 Million more of Citigroup and expressed "confidence" in the CEO.
Right. That won't help C much... maybe he was just trying to give it a psycho boost so he could DUMP what he's got...
What about asian CB intervention in the equity markets? Think about it - US market seems poised to collapse on an option expiration day particularly with the nasty sell off on the close. You can't intervene in US any more with US market closed, so go to asia and do it there. Asia up, europe up, makes a disaster in the US less likely (at least on the open). Of course, I have no idea what I am talking about. But if I was a CB'ker peering over the abyss, I might think about it. Disclosure: long calls, puts, equities, and probably being taken out to the woodshed today.