I don’t have a crystal ball. However, I was expecting the market will drop this week due and I was right! Traders and investors are expected to be cutting positions before the long weekend, and true enough, we’re on the last trading day in the Australian market, the US Market dropped ushering in a move lower for the Australian market at open, but I did not expect this = US market had a steep fall due to missteps in the Spanish bond auction and some dim company forecasts. I thought it was just the season, oh well, you can’t really identify all the events happening. So for all of us students of the market : keep track of the big picture (we know EU risks still in the background), follow the major trend, and remember that your position sizing is key to meeting objectives.
http://www.bloomberg.com/news/2012-04-04/u-s-stock-index-futures-drop-after-spanish-debt-auction.html
I don’t know if this will be the last drop, it is quite a big move, so even if I want to accumulate stocks today at a “bargain price” I have to find ways to lower my risk. I’d rather wait for a confirmation on up move again.
Wish you a fruitful Holy Week!
