Whither Ahead ???

After a long wait, probably for many years, the Bears finally had a reason to celebrate. They feel that their time has come. They have come out of hiding and celebrating widely in the open. Now it's Bulls time to run for cover. They are throwing every thing on the road and running to save their lives (the little money that is left). In a matter of one week the trading world has just reversed it's course. Fear and Pessimism are rampant in the market and they only seem to grow bigger. That's the current market condition. This condition is mainly caused by Citi bank which is the world's biggest bank by market value and revenues. The surprises thrown by Merryl and Citi have finally showed the markets what Warren Buffett has always said about the derivatives markets. People have finally seen those Financial weapons of mass destruction falling on our Stock markets.

At this time a lot of people turned bearish and being compulsive traders, they have started buying the Short ETFs like QID and SDS. I have noticed that lot of fellow traders in SLB Open are buying these Short ETFs. Some people are increasing their cash reserves. We also have a category of people who are trying to preserve their capital by buying safer stocks with that have less volatility (low beta stocks).

Continue reading for Raju's thoughts on how the next two months will play out

by Megan Rotondo |  11/12/07