Monday, January 21, 2008

Complete Mahem And Blood Bath In Stock Markets

Today's trading session across the globe from Asia to Europe has seen unprecedented level of blood bath and investor/trader mahem, every body wants to exit from these assets like world is going to end tomorrow. There was extreme nervousness and fear in the minds of market men, U.S. markets also are doing no good to improve the sentiment. It's been almost 12 straight trading sessions of severe correction in the markets. This nerve reckoning correction has the potential to send jitters even to most brave heart investor. Sanity it seems has gone completely out of the mind and only getting out at any price is the only aspect people are looking for. U.S. markets must stabalise at these points otherwise more collateral damage to world is not ruled out. Having said that, after stocks correct almost 50%, some sort of value buying may emerge in growth sectors and some sort of relief rally is not completely ruled out at this critical juncture. However, some traders might use this relief rally to close their weak trading positions rather than buy on rallies. It will be very important week for equity players as it will decide future sentiment for the markets.