High Heeled Traders

Bouncing and Checking

January 26, 2016

The talk of stimulus last week from the ECB and Chinese officials  fuelled a big rally late last week, which I couldn’t believe. I thought, I’d wait a little bit more to confirm whether this is already, as they say the “bottom”.   Well, yesterday there was more fun in the morning following the US, rally, but the evening session with the EU and US brought I guess the “reality check” if this stimulus is really coming — no firm announcement yet — from Chinese officials over the weekend and until today — so, you guess it right, another down day! So down actually, Chinese stocks haven’t been at this level for 13 months. Article here.

Ahhhhh when will this end?!   Have we reached the point of despair —  the “bottom of the bottom” — the “I’m not buying even if you pay me” stage? Do we dare test the strength of this bear market?    I had written an article about “testing the market strength” for a bull market in this link . Do you want to find out how far this bear will go? It’s not hard! Modern technology makes it easy – 2 taps in an app taking up only 2 seconds of your time that is well-spent Software solutions in commodity trading have made it easier for the public to trade anywhere, anytime.

So, go on, keep checking. My observation is that there will be some bear market rallies and an eventual turn around after some policy adjustments the Chinese government is cooking up. The stockmarket rescue efforts have not succeeded so far, and has been very expensive. However, as governments have done before, somehow they have to stimulate the economy, which revives growth and risk appetite. I’ve some “numbers” put out as key “Support” levels. I don’t really rely on those, I think like in bull markets, bear markets sentiment or “fear” is going to drive the trend. So yes, we will bounce around until they come out with that stimulus policy.
Keep calm under pressure and watch the market.


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