The wall street game is on. Last week the sell off excuse was Greece default and China hard landing issue. Today, China non manufacturing PMI came out at 59.3 compared to previous 57.6 which show the data is better then expected. Then the excuse came on UK manufacturing sector shrinking, today the PMI manufacturing index came out at 51.1 while expected was 48.4. It again shows the data is better then expected. Infact the PMI data released today showed Italy, French, German, Euro zone PMI beating estimate and it doesnt show contracting. "Yet the stocks are down". Greece remain the prime issue who's economy is less then Colorado. But right now its the biggest issue in the world. Anyways, who cares ?
Remember right now "Cash is king". Its not necessary to invest in something and loss the money. But if your brave, you can take chances and use this volatile market as opportunity. Vix right now is at 42.96.
http://data.cnbc.com/quotes/vix When vix is greater then 40, you should never invest for long term.
If VIX fall below 30 then you can invest for long term.
Today as per first news, shows big headline "Greece to Miss Deficit by 2 billion Euro Targets Despite Austerity " which is bad news while second headline was "Greek Finance Minister Optimistic On Next Aid Tranche" which has disappeared since all the market is in red and focused only on first news. This is what I say the mainstream media playing game with the market. Third headline was "Qatar Holdings to Invest $1 Billion in European Goldfields" which is not seen either.
FTSE100, CAC40, S&P ASX200 , Nikkei 225, are all down by almost 2%. Which means Dow should be down approximately by 2%. But this days the market swing based on headline and it can change any moment whether good or bad.
If your using http://finance.google.com, then use technical RSI indicator below the chart. RSI below 10% is best time to invest at any particular time while RSI above 75% is best time to sell. That doesn't mean the RSI in the morning at 10% will hold same or higher value at the close. This technique is good for day trading which last from 1 minute to 2 hour or how the chart is trending whether upward or downward.
If the stocks open low then wait for 10 minute to see which way the trend is going, Most people sell off or panic within first 10 minute, then its time for little pull back, check if RSI has hit below 10% then its good time to be in the stock. There is no harm in taking profit and leave the whole day. You cant go wrong with this strategy.
Today event are
Monday October 3rd
10. EST ISM Mfg Index : Any number greater then 50 is positive sign.
10. EST Construction spending. Any number less then -0.3% is positive
ECB meeting at Luxembourg is at 5 pm or 11 am EST.
Conclusion: Its not necessary to invest and be in the stock when VIX is above 40. Cash is king. RSI below 10% is best time to invest for short term. Don't buy individual stock at this time. ETF is safe bet.
Market is going up: Buy DIA, SPY, TNA
Market is going down: Buy put on DIA, SPY, and calls on TZA, GLD, VXX, VIX
Volatitlity to continue till October 13th, We may see the worst sell of this season and retest all the lows S&P500 at 1101, DJI 10517 and nasdaq 2331.
At the same time based on the previous data, I see upside in DJI of atleast 1500 point, Nasdaq up by 300 point, S&P 500 up by 131 points in short period of time from their bottom by the end of this quarter.
Remember right now "Cash is king". Its not necessary to invest in something and loss the money. But if your brave, you can take chances and use this volatile market as opportunity. Vix right now is at 42.96.
http://data.cnbc.com/quotes/vix When vix is greater then 40, you should never invest for long term.
If VIX fall below 30 then you can invest for long term.
Today as per first news, shows big headline "Greece to Miss Deficit by 2 billion Euro Targets Despite Austerity " which is bad news while second headline was "Greek Finance Minister Optimistic On Next Aid Tranche" which has disappeared since all the market is in red and focused only on first news. This is what I say the mainstream media playing game with the market. Third headline was "Qatar Holdings to Invest $1 Billion in European Goldfields" which is not seen either.
FTSE100, CAC40, S&P ASX200 , Nikkei 225, are all down by almost 2%. Which means Dow should be down approximately by 2%. But this days the market swing based on headline and it can change any moment whether good or bad.
If your using http://finance.google.com, then use technical RSI indicator below the chart. RSI below 10% is best time to invest at any particular time while RSI above 75% is best time to sell. That doesn't mean the RSI in the morning at 10% will hold same or higher value at the close. This technique is good for day trading which last from 1 minute to 2 hour or how the chart is trending whether upward or downward.
If the stocks open low then wait for 10 minute to see which way the trend is going, Most people sell off or panic within first 10 minute, then its time for little pull back, check if RSI has hit below 10% then its good time to be in the stock. There is no harm in taking profit and leave the whole day. You cant go wrong with this strategy.
Today event are
Monday October 3rd
10. EST ISM Mfg Index : Any number greater then 50 is positive sign.
10. EST Construction spending. Any number less then -0.3% is positive
ECB meeting at Luxembourg is at 5 pm or 11 am EST.
Conclusion: Its not necessary to invest and be in the stock when VIX is above 40. Cash is king. RSI below 10% is best time to invest for short term. Don't buy individual stock at this time. ETF is safe bet.
Market is going up: Buy DIA, SPY, TNA
Market is going down: Buy put on DIA, SPY, and calls on TZA, GLD, VXX, VIX
Volatitlity to continue till October 13th, We may see the worst sell of this season and retest all the lows S&P500 at 1101, DJI 10517 and nasdaq 2331.
At the same time based on the previous data, I see upside in DJI of atleast 1500 point, Nasdaq up by 300 point, S&P 500 up by 131 points in short period of time from their bottom by the end of this quarter.
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