Finally Some Market Volatility – “What Next” ?

Posted on 30. Nov, 2009 by Anthony in Economic News, Stock Broker Reports

It is never good news when a major global company can’t pay its bills however I started to think – “ They owe $60 Billion U.S right now and at the rate the U.S dollar is falling maybe they can pay it back in 6 months time a lot cheaper maybe $50 Billion, after all this is exactly what the U.S government is trying to do right now with its loans as they devalue their currency… 

So don’t take this news as anything more than a global growth “speed bump”, global markets are overbought right now and they don’t need any major excuse to take a breather or even a sharp selloff based on “FEAR”…… 

I still see a healthy correction or a continuation of this sideways consolidation necessary as time has to always catch up to the recent fast pace of increase in most of our Aussie shares, enjoy having insurance – protection and hold top quality Aussie stocks long term… 

Those of us who want to trade the markets, get ready, stay in good cash position or  hold short term gold stocks for now, bank stocks are getting cheaper and may be a great buy around Christmas time.. 

Here is our current X.J.O daily chart… 

We have not only a very good head and shoulders formation, we now have a solid 2 month downtrend in play so we must respect this short term sentiment and be either prepared to ride out this short term wave of selling or buy insurance for your long term holdings..

Any short term positions should be seriously revised as Volatility is certainly back especially over the last few days and this has to be calculated into a share price if you want to enjoy a profitable ride, smaller positions – larger stops will be needed… 

Our longer term moving averages the 200 day and the American 240 day are both steadily rising and it looks to be a few weeks away before time catches up to current prices again, either we dip down quick to meet them or we sit tight and go sideways until they come to us.. 

Any more news that scares the markets and you all should know what will likely happen, especially after Fridays example.. 

Don’t panic and sit tight in your quality stocks, enjoy the current Gold bull market by buying Gold and gold stocks on their next dip, its coming..

Expecting success

James McMurtrie

Meridian Financial Pty Ltd

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Tags: all ords, broker report, global markets, market report, stock broker, stock market crash