18 Aug, 2014 (7:23AM IST)
Aug 17, 2014, (9:52 PM EDT )
Time to open my mouth and put my foot into it by predicting intra day trend in global stock markets 🙂
( I had left this job for experts over the weekend 🙂 )
The biggest, and most important event of this week will be 3-day meeting of various central bank officials in Jackson Hole, Wyoming. Two years ago, the then Fed Chief Ben Bernanke had declared QE3 in this annual meeting of major central banks. Now I understand why global stock markets had suddenly started rallying last week, before Ukraine punctured their inflated numbers by attacking a Russian convoy.
It was a sudden crash in U.S. and European markets on Friday (except in U.K., where good economic numbers helped markets survive the onslaught of sell off).
DAX suffered the most, U.S. markets recovered later in the session with the help of tech stocks.
Today, although markets have opened with weak green numbers, the jolt on Friday was big enough to scare market whales into hiding and no matter how much they hope for more easy money from Jackson Hole meeting, a fear of retaliation by Russia will keep markets in check.
Nikkei is showcasing this swing of hope and fear in global markets today, by going up and down in green and red numbers.
U.S. and European stock futures are highly positive at the time of writing, but there is no surety that these high numbers will sustain through the day. Global markets will be waiting for Russian markets’ opening bell in a few hours now and might follow the trading pattern of those markets.
SGX Nifty is trading at a loss of -14 points as emerging market’s currencies suffered a drop against USD on Friday last.
Expect a highly volatile session in global stock markets today. Ukraine- Russia fight and the American jet fighters bombing in Iraq to control rebels- these two crises will continue to keep markets nervous and make traders trigger-happy, ready to bolt out of the trading ring at the drop of a pin– a hand- grenade’s pin 🙂
Good luck, trade carefully and for short duration, keep a strict stop loss in all your trades.
See you later.