Tuesday, September 30, 2008
crazy monday! in my opinion was mr. crash out there TODAY (the final sell-off?) and the markets could start their slow recovery tomorrow :o))
oh, my god! what's a day on the financial markets today!
after the announced bailout for financial institutions on the weekend (volume $700 billion) reacted the markets like crazy. they liked that huge bailout. gold + silver fell sharply, in that time have been the european stock markets in low negative numbers (max. for small cap stocks -3%), usd rose against eur like if there were no dollars tomorrow (+1.44%) ... but why? supply of dollars was increased significantly AND the dollar didn't fell like a stone from the currency heaven? ... unfortunately, in the short term are the fundamentals meaningless :-)). that's trading, that's life! btw, all commodities were hit hardly: oil -5%, corn -6%, silver -3%, lead -7%., ... why?
in the late market hours decided the u.s. congress not to accept the proposed bailout solution and then was mr. crash out there: DJIA fell more than 500 points (from nearly 11.000 to 10.397), all other indices didn't wait too long and started their own crash! the dow fell 777 points – its worse day ever! for the S&P, it was the worse day since ’87 => DJIA -6.98%, S&P500 -8.79%, nasdaq100 -10.52%,). all of them 'led' by financial institutions (wachovia -81.8%, sovereign bancorp -72.16%, national city corp -63.34%, fifth third bancorp -43.63%, ... and there was just 1 (= ONE) company in S&P500 with positive result: Campbell Soup Co. +0.32% btw, are u hungry? what's about a soup?)
what about my own trading? i had 2 limit orders in the market and bought the german technology index at 699 euros (at that time about -3%), toronto60 @ 699.9 cad. later i've decided to buy silver @ 13.04 after i could recognize that the sell-off in gold + silver probably) ended as there was a strong price increase. after dinner in the city with a former colleague of mine i couldn't believe my eyes: all these red colors and double digit losses ...
my trading account lost 'just' 150 euros, than i started to trade the late recovery of DJIA and won about 150 euros :-). after that i continued to trade DJIA and lost about 60 euros. i will post all the details about my 20 trades tomorrow, PROMISED :o)