Thursday, May 13, 2010

Strong violatility on global indices in 2010

The trick is to try and work out how dramatic those swings are from sell to buy. The market is currently looking more towards having peaked out, or topped out from their highs. Personally it is more about a divergence in safe haven buys as oppose to risk, then selling in between that cross over to risk aversion, then buying back into risk 'on' environment. All done within a period of high volatility. This may take place within in 2-3 days on a week, or week to week, or month to month.

The play would be gold as far as a warrant on the gold price, or option plays; as a higher leverage buy.

Overall the market may trail lower into 2010, but not with out the wild swings.

Or it just sinks hard.

* MEC.research doesn't give investment advice, trade at your own risk

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