Tuesday, February 5, 2008

Profit Booking Brings Down Stocks

After five days of consecutive gains, stock market players chose to book profits and that brought down almost every stock market across the globe barring taiwan's stocks, which was up almost two percent. This shows that market players are still hesitent of carrying long postitions for too long and don't want to leave any profit making open as markets still are struggling to come out of recent mahem that occured few days back. It's very natural to expect such reaction from them as stock holders/traders gave gone through deep mental agony during that devastating crash of unseen magnitude and intensity. Gold too has seen some profit booking, it has seen fantastic rise during stock meltdown days, so it's wise to take away some profits. Share holders will not find solace unless and untill markets see substantial recovery. Till then they have to live this high volatility.