I think we are back to Rizgars market warning scenario. The markets are still firmly in a downtrend with many warning signs. Dow and Nazdaq futures are barely positive and things not looking good. Nazdaq is now at its lowest point since 1999. The immediate future will depend on whether the Fed reduces interest rates on Friday. Even if it cuts by 0.50% it is now seen as too late to help the markets in the short term. America is facing the possibility of a hard landing and full recession, certainly in terms of company earnings. MORE profit warnings are expected in first quarter. Is a market CRASH possible? Of course it is, the American public rely on the stock market for income and wealth. If the selling increases, and I have said this before, selling could reach critical mass then CRASH. Probably won't happen but it is looking more and more dangerous over there. THE GOOD NEWS IS: shares are likely to get cheaper but I do not think members should be tempted back into stocks too soon. WAIT a couple of days to end of week to see how NON FARM PAY ROLLS come in and whether the FED moves on interest rates. Remember the rule, for mere mortals like me, it becomes very difficult to win when a general sell off occurs. It reminded me this morning when Anatov (ATV) lost 4p. My £250 profit suddenly became £85. Did I take it, you bet I did. A profit, is a profit, is a profit. More to the point it was not a loss. I can come back when things improve. That is how you must think. Ask yourself the question, WOULD I BUY THIS STOCK RIGHT NOW, IF THE ANSWER IS NO THEN YOU SHOULD CLOSE THE POSITION. Expect an increase in volatility. Might seem like a contradiction but it is not easy to forecast swings in this market. If you don't believe me look at price of KCOM yesterday, did you forecast the sudden rise, did you buy it and benefit? Unfortunately I did not see the rise coming. Did you buy Vodaphone at £2.30, very risky play, next day up 12p but look at it now. If you did not sell VOD on the day of the rise you are now back to square one with a loss of 8p today. This is intended to show you the extent of the problem. As soon as traders smell a profit they are taking it. Remember patience is the key to success. You do not have to trade to win, sometimes it is better to stay out because the risks become too great. WATCH OUT - THE MARKET IS TELLING US SOMETHING AND ITS NOT A PRETTY PICTURE RIGHT NOW.
No financial advice intended
Tx
[This message has been edited by traderx (edited 03-01-2001).]
No financial advice intended
Tx
[This message has been edited by traderx (edited 03-01-2001).]
