Interesting huh! We had US markets closing at decent levels over the weekend but most Asian markets fell today! Scanning the headlines, with no cause for joy anywhere, it seems to be about the Euro debt issues. (And don’t we already know that!) 🙂 There seems to be anxiety that agreement between the governments who again go to Summit on June 28-29 could be hard to nail down. Greece wants “extended grace period” on the austerity measure, while Germany says no! France wants growth (with funding still a mystery) and Germany does not want to do anything until it makes sure they are not spending for it (can’t blame them).
There were also a lot of profit warnings / credit rating downgrades / slower growth forecasted even on China and currency depreciation even from the lofty BRICS. Ahhh, the “Sales” at the markets could possibly go on and on and on….
What’s the opportunity? There are investors, the so called “bargain hunters” who may get excited with what’s happening. I’m looking at the 1 year chart of STO and the 52-week low 10.11 is not too far away from it’s current price around 11.22.
There are also seasonal factors at play that could add to the volatility, 30 June being the end of Financial Year for Australia, and
end-of-quarter expiry of options or other financial instruments. Some investors may liquidate their positions for tax considerations.
Waiting patiently can lead to valuable returns … keep watching the Support levels, you want to enter for a “long” position (meaning you expect prices to go up) when it has moved up from the lows — in this up and down (volatile) market.
Some articles :
http://www.reuters.com/article/2012/06/25/us-eurozone-tour-idUSBRE85O03U20120625
http://www.bloomberg.com/news/2012-06-25/central-banks-commit-to-ease-as-threat-of-lost-decades-rises-1-.html
