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Absolutely. Agree with J.D's and Don't panic's points too, Personally though i've got far too much £'s cash sitting on the sidelines because I neither feel comfortable going heavy long or even shorting the fear out there.

 

I'm sure there are many on the sidelines like me.

 

As for Greece I too would hedge my bets to a fudge of sorts, but i'm not confident how the market will react either.

 

Interesting that the Fed did not give the market the extra monetary stimulus that it desired and stocks are now falling back heavily again. I'm still convinced that the market doesn't really know what it wants, stimulus or cutbacks, or both! Depends on its mood at the time it would seem and if it coincides with a bout of profit taking after a rally, then anything will do.

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Tesco go on the offensive. Could be bad news for Ocado.

 

Tesco to start supermarket price war

 

Analysts said the biggest losers from any major initiative would be Ocado, which has promised to price match Tesco on most brands, and J Sainsbury, which is testing out a similar price-match scheme in Northern Ireland. Ocado shares fell 13.2 to 102.5p, at one point falling below the 100p for the first time since the company's 180p flotation in July last year.

 

Dave McCarthy at Evolution Securities said: "The impacts of such a move by Tesco would be wide-ranging and heavily felt across the industry. Our initial thoughts would be that Tesco would be the long-term beneficiary [otherwise why would it do it], Morrisons would not be unaffected but with a substantial self-help programme would be able to cope to a large degree. Sainsbury's would come under significant pressure."

 

Unlike most "price war" announcements, analysts expect this to materially alter the profits that Tesco makes in Britain. So-called price wars often see some prices lowered to a big fanfare, while many others rise to compensate.

 

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8780284/Tesco-to-start-supermarket-price-war.html

 

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Interesting that the Fed did not give the market the extra monetary stimulus that it desired and stocks are now falling back heavily again. I'm still convinced that the market doesn't really know what it wants, stimulus or cutbacks, or both! Depends on its mood at the time it would seem and if it coincides with a bout of profit taking after a rally, then anything will do.

 

Very interesting (although, oddly quite expected by many).

 

I think it was, however, another clear shot across the bows to the government.

 

Bernanke gave such a bleak outlook, yet didn't stimulate (print) more.

 

Question is, seeing they didn’t get what they wanted, will the markets keep throwing the dummy out the pram, or decide to calm down for a while?

 

If they keep volatile for a day or two, I wouldn't be surprised to hear Bernanke back with the old "Fed stands ready to intervene more if necessary) to calm them down again.

 

Makes the BoE's new QE decision more interesting too (still think we'll see it before end of year here).

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Very interesting (although, oddly quite expected by many).

 

I think it was, however, another clear shot across the bows to the government.

 

Bernanke gave such a bleak outlook, yet didn't stimulate (print) more.

 

Question is, seeing they didn’t get what they wanted, will the markets keep throwing the dummy out the pram, or decide to calm down for a while?

 

If they keep volatile for a day or two, I wouldn't be surprised to hear Bernanke back with the old "Fed stands ready to intervene more if necessary) to calm them down again.

 

Makes the BoE's new QE decision more interesting too (still think we'll see it before end of year here).

 

The Fed statement looks the same as before. The markets must know that more QE would result in a negative response in Congress, but then the markets would apparently like to see more being done about the deficit. Perhaps it likes QE, because most of that money heads its way via the investment banks, etc. It gives them more to play with, although as they often use it to play commodities the end result would be more price inflation down the line.

 

The Fed statement also said that they would use the tools available to it as appropriate, but it would appear that the market always needs Ben to come out a day or so later to hold their hand and state it for all to hear. Do the people in the market actually read the statement?

 

The Committee also decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013.

 

The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability. It will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate.

 

http://www.usatoday.com/money/economy/story/2011-09-21/fed-statement/50494642/1

 

BoE base rates to follow the same path until at least 2013? Most likely I would have thought, especially as 1.7million in the UK now face negative equity if house prices fell another 10%. Continuing nasty times for savers though.

 

Up to 1.7m home owners face the spectre of negative equity according to new housing data.

 

Currently more than 800,000 home owners 7.3pc of all households with a home loan have a mortgage that is bigger than the market value of their property.

 

But thanks to lax lending during the credit boom, and several years of house price falls, this number could double if property prices dip a further 10pc. This would mean that almost as many home blighted by negative equity in the early 1990s after the last housing crash.

 

The data, by mortgage administrators HML, was based on 250,000 mortgage accounts across the country. It shows that home owners in Northern Ireland and the North West of England are likely to be worst hit by further property price falls.

 

http://uk.finance.yahoo.com/news/1-7m-home-owners-face-tele-3541037235.html?x=0

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Is it time to start getting bullish?

 

http://www.investorsintelligence.com/x/charts/sentimentChart?_period=4y&stype=diff&sp500=y&w=600&h=400

 

We will either have a strong rally off this level, or a 2008-style collapse.

 

More inclined to believe a rally, as there would need to be an event to set in motion a repeat of 2008. We tend to be in a repeating pattern of market fears based on possibilities of what might happen at the moment which after a while subside when nothing immediate has happened and the market starts to tentatively rise again. Then the fears come back and the markets tank a little as the profit takers jump in and wait for things to settle. So far there has not been a definite event, a bank going bust (Lehmanns), a country defaulting, a policy failure, to push things over the cliff. There hasn't been certainty either, so markets continue to feel more fear than cheer. It is possible that we are at the beginning of a slow, bear market leg down, with significant rallies along the way. The 200/50 dayMA is suggesting this may be the case.

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More inclined to believe a rally, as there would need to be an event to set in motion a repeat of 2008. We tend to be in a repeating pattern of market fears based on possibilities of what might happen at the moment which after a while subside when nothing immediate has happened and the market starts to tentatively rise again. Then the fears come back and the markets tank a little as the profit takers jump in and wait for things to settle. So far there has not been a definite event, a bank going bust (Lehmanns), a country defaulting, a policy failure, to push things over the cliff. There hasn't been certainty either, so markets continue to feel more fear than cheer. It is possible that we are at the beginning of a slow, bear market leg down, with significant rallies along the way. The 200/50 dayMA is suggesting this may be the case.

 

I agree with much of that. It feels like a case of mid-summer jitters that the markets are prone to. We're just coming nicely into Sept/Oct window that is often a seasonal low for stocks.

 

However it has to be acknowledged that while SPX has nicely held support, many other markets have fallen much more -eg DAX and Nikkei. They are well into bear market territory now.

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Naked Trader, Robbie Burns could be right with his latest blog.

 

Markets

 

Some bloke says something in the States. Down 100 points.

 

Someone says the word "Greece". Down 100 points.

 

Someone say "QE3" - up 100 points. Someone says "QE2" and they all go off on a cruise.

 

An analyst downgrades a country. Down 100 points.

 

Someone in the US treasury farts unexpectedly. Down 100 points.

 

Ben Bananas smiles. Up 200 points. Ben burps. Down 100.

 

Up and down, up and down with it all ending up as a whole load of nothing.

 

Spin the wheel, folks, yes place your bets... or just toss a coin, far easier!

 

In fact I think we are waiting for someone or other to say something today, oh God knows, dunno about you but sick of the whole thing!

 

Greece, Italy, Euro, China, debt, credit, crisis, fed up with the lot of it!

 

After taking some reasonable amounts in the last month using FTSE spreadbets and the supershort I got tired of it all and done none of it at all this last week. I needed a rest. Indeed the market looks a bit tired all in all.

 

I suspect we will get this volatility for the remainder of the year. Or until something gets sorted for sure. Until then I suspect there will be massive down days and massive updays during which unless you're a daytrader it might simply be worth hiding behind the sofa with a good book and some toast.

 

http://www.nakedtrader.co.uk/

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Falling knives. Some big falls today especially amongst the miners.

 

Vedanta Resources (VED) 1,117.00p -13.28%

Antofagasta (ANTO) 972.50p -12.70%

Kazakhmys (KAZ) 846.50p -12.37%

Fresnillo (FRES) 1,709.00p -11.68%

Rio Tinto (RIO) 3,023.00p -10.80%

Lloyds Banking Group (LLOY) 32.51p -10.09%

Burberry Group (BRBY) 1,361.00p -9.81%

Eurasian Natural Resources Corp. (ENRC) 569.50p -9.75%

Xstrata (XTA) 849.50p -9.61%

Barclays (BARC) 138.85p -9.40%

 

When should you try to catch them?

 

I have a general rule not to, wait for the charts to show they have settled and a new uptrend/bounce may be starting, but it is probably important to distinguish between different types of falling knives.

 

I tend to go by the following general rule.

 

Falling knife - bad company - bad results, very high P/E, no dividend, reputation on expectations, etc, steer clear.

 

Falling knife - good company - good results - making money - lowish P/E, pays dividend or re-invests as miners tend to do, falling because of general market fear, etc, wait for the right moment to get in, assuming you have done your homework on the company and it fits in with your rules to buy. I would say that all of the miners above are pretty good companies, but the worst may not be over for them in current market conditions.

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Falling knives. Some big falls today especially amongst the miners.

 

Vedanta Resources (VED) 1,117.00p -13.28%

Antofagasta (ANTO) 972.50p -12.70%

Kazakhmys (KAZ) 846.50p -12.37%

Fresnillo (FRES) 1,709.00p -11.68%

Rio Tinto (RIO) 3,023.00p -10.80%

Lloyds Banking Group (LLOY) 32.51p -10.09%

Burberry Group (BRBY) 1,361.00p -9.81%

Eurasian Natural Resources Corp. (ENRC) 569.50p -9.75%

Xstrata (XTA) 849.50p -9.61%

Barclays (BARC) 138.85p -9.40%

 

When should you try to catch them?

 

I have a general rule not to, wait for the charts to show they have settled and a new uptrend/bounce may be starting, but it is probably important to distinguish between different types of falling knives.

 

I tend to go by the following general rule.

 

Falling knife - bad company - bad results, very high P/E, no dividend, reputation on expectations, etc, steer clear.

 

Falling knife - good company - good results - making money - lowish P/E, pays dividend or re-invests as miners tend to do, falling because of general market fear, etc, wait for the right moment to get in, assuming you have done your homework on the company and it fits in with your rules to buy. I would say that all of the miners above are pretty good companies, but the worst may not be over for them in current market conditions.

 

Tricky indeed. I like Xta and have held them before, (during and after the rights issue, which I took up happily).

 

Sold them a long time back at around 700. Thought I had done well at the time :D

 

Haven't been keeping an eye on them, but to see them back down at these levels, maybe they’re worth a look again.

 

Added a few Av this afternoon, went ex-div yesterday, but plan to keep for a good while yet. (Just a few mind).

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Here's a different view, perhaps even a real contrarian one, of what is going on.

 

The world is ending. You heard me. Europe is going to default. The U.S. will go into a depression, the dollar will shrink to nothing, Congress and Barack Obama will continue to fight in the Coliseum while us citizens shout and roar from the stands, and stocks will go down forever. To zero maybe.

 

All of that rioting that is in Libya will spread like a “contagion” to here. And in 13 billion years, the perimeter of the sun will be so wide it will suck us in, a cold dark Earth, a shadow of what it once was.

 

Do I worry? Me? Mr. “Dow 20,000?” Of course I do. I get worried that people will believe the lies listed above that are spread every day.

 

==================

 

Let’s look at some basic facts:

 

A The top eight banks in the United States have almost $1 trillion in capital and only $54 billion in exposure to the weakest Euro zone nations. Let them all default. Doesn’t bother us.

 

B In 1981-2, almost all of South America defaulted. The top eight banks then had 263% of their capital exposed to South America, based on accounting rules in place then. Guess what? We had a 20-year boom after that.

 

C Is Europe a Lehman? One big difference (other than the obvious one I just mentioned: The banks in 2008 were subject to the brand new mark-to-market rule. Now they don’t have to mark to market. They can make an assumption (”Europe will pay back eventually”) and not have to mark things down as quickly. Guess when the mark to market rule was eliminated? March 2009 — the bottom of the market.

 

D We’ve had eight straight quarters of GDP growth. Well, what if next quarter there is no growth? Impossible. Just the return of Japan to some degree of normalcy will guarantee growth.

 

E The government is going to cut a lot of jobs. Won’t that reduce GDP? Definitely not. Look at 1945. The government eliminated 10 million (!) jobs when the soldiers returned. I don’t recall the Great Depression of 1945, do you?

 

more....

 

http://www.marketwatch.com/story/no-worries-for-a-worrisome-market-2011-09-23

 

 

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I agree, we are a long way from the end of this and it could go on for years as No.^ points out. (Unless it all comes tumbling down in a rapid collapse).

 

I see only two options for Greece.

 

Default, or default. Just depends how it is done, orderly, or write off, or bail out with right off etc etc.

 

Markets set out their demands a while back. EU hesitated, but looks like they have now blinked first.

 

So, at last, realistic noises are coming out of the EU. 50% write down on Greece, 2 trillion euro back up fund and a recap of the EU banks.

 

Just what the market ordered.

 

Only problem now is when (and if) the EU actually do it.

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Markets set out their demands a while back. EU hesitated, but looks like they have now blinked first.

 

So, at last, realistic noises are coming out of the EU. 50% write down on Greece, 2 trillion euro back up fund and a recap of the EU banks.

 

Just what the market ordered.

 

Only problem now is when (and if) the EU actually do it.

 

Markets seem to be reacting positively to this, but there again they were oversold so a rally was not unexpected. EU seems to be working to a 6 week time frame from here whereas the markets want something quicker, wonder who will give in first? I suppose it depends on whether the markets begin to throw their toys out of the pram again or not.

 

5400 or so on the FTSE looks like the new 6100, as the hurdle to be overcome, 4 times since early August it has failed to break through, we could be seeing another attempt now at breaching it. Lots of mining shares with some catching up to do on any rebound.

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Buffett seems to like shopping at Tesco.

 

Prolific U.S. investor Warren Buffett has increased his stake in Tesco PLC, a person familiar with the matter said Monday, as the supermarket giant prepares to report on its first half-year under new chief executive Philip Clarke next week.

 

Berkshire Hathaway Inc., Buffett's investment vehicle, bought 34 million shares in the group in the last week of August, valued at around £120 million ($185.5 million) at the time, raising its stake in the group to 3.64% from 3.21%, the person said.

 

http://online.wsj.com/article/SB10001424052970204422404576594510606269894.html

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Markets seem to be reacting positively to this, but there again they were oversold so a rally was not unexpected. EU seems to be working to a 6 week time frame from here whereas the markets want something quicker, wonder who will give in first? I suppose it depends on whether the markets begin to throw their toys out of the pram again or not.

 

5400 or so on the FTSE looks like the new 6100, as the hurdle to be overcome, 4 times since early August it has failed to break through, we could be seeing another attempt now at breaching it. Lots of mining shares with some catching up to do on any rebound.

 

Rally might not last as long as expected after all.

 

German FinMin says increasing EFSF is "silly idea"

 

(S&P threatening downgrade of France and Germany if EFSF is leveraged)

 

EDIT ** In fact, just decided to open a small short on the DOW.

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Oh bugger.

 

I bought Lloyds last week at 33.09p as a swing trade. Up to 37p today; which was my target...but I got greedy and wondered whether in a year or tw0 it could be 50 or 60...now regretting my decision...

 

Im learing a lot about my mentality through these first steps at investing.

 

I learnt some very hard lessons courtesy of Exillon Energy.

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Oh bugger.

 

I bought Lloyds last week at 33.09p as a swing trade. Up to 37p today; which was my target...but I got greedy and wondered whether in a year or tw0 it could be 50 or 60...now regretting my decision...

Don't quite follow. You didn't sell and take the profit or did you? It could be worth 50 or 60 in a year or so, but if your decision to buy was based on a short term swing trade then to hold it for the long term from here would be a risky decision. It can easily go down a lot again. There will be plenty of ups and downs in the Lloyds share price over the next two years to get back in. A decision to sell on the basis of a swing trade, having bought at 33.9 was probably correct because it is now well into overbought territory. You've made around 10% very quickly, for a swing trade that is a result.

 

Im learing a lot about my mentality through these first steps at investing.

 

Trading is 90% psychology IMHO. Trading systems are 10 a penny and many work, while an individual's psychology often doesn't. If you cannot overcome any psychological hangups about trading that you may have than it probably isn't for you. I'm still working on it and this is one area that you will never master overnight.

 

I learnt some very hard lessons courtesy of Exillon Energy.

 

It had a good run recently and then sold off in line with the market falls and then some. I read one market report when it fell 20% in a day that no one could see any reason for it. I would agree, it could easily come back just as fast, but these oil growth companies can be every bit as volatile as small gold and silver miners.

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Just who is Alessio Rastani? Hoax or for real?

 

http://www.youtube.com/watch?v=7v9L-t3gxzQ

 

Was the BBC's trader from hell one big hoax? Claims greedy dealer praying for a recession in which to get rich was a FAKE

 

The 'trader' at the centre of a controversial interview, in which he claimed the City just 'loves' a economic disaster, was today accused of being a hoaxer.

 

Twitter users took to the social networking site to 'out' the City trader as an imposter and claimed he was a member of a group of hoaxers, hours after an astonishing interview on the BBC.

 

Interviewers were left open-mouthed as Alessio Rastani admitted that traders 'don't really care that much' about the prospect of an economic collapse.

 

He astonished BBC viewers yesterday by describing his hopes of profiting from a recession, adding: 'The governments don't rule the world - Goldman Sachs rules the world.'

 

http://www.dailymail.co.uk/news/article-2042291/Alessio-Rastani-Claims-greedy-dealer-praying-recession-FAKE.html

 

BBC financial expert Alessio Rastani: 'I'm an attention seeker not a trader'

 

He's become the face of the global debt crisis and an internet sensation. The self-styled City trader who stripped away the jargon and bluster of the financial world and summed up our woes in just three minutes. "I go to bed every night dreaming of another recession," Alessio Rastani explained in a BBC interview. "It's an opportunity."

 

==================

 

How a man who has never been authorised by the Financial Services Authority and has no discernible history working for a City institution ended up being interviewed by the BBC remains a mystery.

 

The incongruity led to some commentators speculating Mr Rastani was a professional hoaxer. The BBC denied the allegation: "We've carried out detailed investigations and can't find any evidence to suggest that the interview with Alessio Rastani was a hoax."

 

However, the BBC declined to comment on what checks, if any, it had done prior to the interview.

 

Mr Rastani was a little more forthcoming.

 

"They approached me," he told The Telegraph. "I'm an attention seeker. That is the main reason I speak. That is the reason I agreed to go on the BBC. Trading is a like a hobby. It is not a business. I am a talker. I talk a lot. I love the whole idea of public speaking."

 

http://www.telegraph.co.uk/finance/economics/8792829/BBC-financial-expert-Alessio-Rastani-Im-an-attention-seeker-not-a-trader.html

 

Trader was not a hoaxer, says BBC

 

A financial trader who appeared on the BBC was not a hoaxer, the broadcaster has said after doubt was cast on his credentials.

 

It issued a statement after Twitter users suggested that Alessio Rastani was not a trader.

 

"We've carried out detailed investigations and can't find any evidence to suggest that the interview... was a hoax," the BBC said.

 

http://www.bbc.co.uk/news/business-15078419

 

I am an experienced stock market and forex trader and professional speaker. I have had the privilege of learning from some of the world’s greatest traders.

 

I have a strong foundation in US and UK stocks, using precision timing and tools for entering and exiting the markets.

 

My belief is that anyone who wants to improve their income and achieve success in life, cannot afford to ignore learning how to trade.

 

The problem is that most people are under the illusion that they can do it themselves – often without any proper knowledge of how the markets work and taking measures to minimise the risks involved.

 

http://www.leadingtrader.com/about/

 

So, who are the Yes Men?

 

Identity Correction

 

Impersonating big-time criminals in order to publicly humiliate them. Our targets are leaders and big corporations who put profits ahead of everything else.

 

http://theyesmen.org/

 

If you look at his blog, his Twitter account, and his interview with Forbes, not to mention his notorious BBC interview, it’s pretty clear that Alessio Rastani is, at least in part, who he says he is. The Yes Men do set up elaborate hoaxes, but they do so with respect to large institutions: they wouldn’t put this much effort into inventing “Alessio Rastani” out of whole cloth. Mostly because there are lots of genuine traders like Alessio Rastani floating around the internet already. They trade their own money, they sometimes win and they sometimes lose, and they aspire to getting famous on the internet and selling their own trading advice.

 

That said, however, the resemblance to “Jude Finisterra” from the Yes Men is startling. Which raises the question: is it possible that Rastani is both a trader and a member of the Yes Men? And the answer there, I think, is absolutely yes.

 

Independent traders are, well, independent — and you don’t need to spend very much time hanging around the comments section (or even many of the posts) at Zero Hedge to discern a strong nihilistic and even anti-capitalist strain to much of the thinking in that community. Independent traders are often men in their 20s and 30s who inherited a substantial sum of money and who for whatever reason don’t have a more attractive opportunity in the regular workforce. They work from home, they tend to have a strong contrarian streak, and they have a lot of time on their hands.

 

http://blogs.reuters.com/felix-salmon/2011/09/27/is-alessio-rastani-a-yes-man/

 

Jude Finisterra hoax.

 

Bhopal Disaster - BBC - The Yes Men

 

http://www.youtube.com/watch?v=LiWlvBro9eI

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I bought and kept it. Im thinking that I will keep it now. Its quite a little yoyo'er. Resistance seems to be around 36-37. There were a few interesting large buys after closing (6m and 9m). I also think it will finish lower.

 

Re exillon, I collated the following:

 

Oil Price Falling

 

The world’s largest energy exporter saw the price of its main export, Urals crude oil, fall more than 7 percent last week to $104.93 a barrel, $10 below the level required to balance the budget.

 

Speculation over who would run for president pushed Russian equities evaluations to the lowest in emerging markets. The Micex index slipped 12 percent last week, dropping valuations on the measure’s 30 shares to an average 4.7 times of member companies estimated earnings, the cheapest among 23 emerging markets tracked by Bloomberg.

 

The ruble has slumped 10 percent against the dollar in September and is poised for its worst month since January 2009, according to Micex prices compiled by Bloomberg. The currency was unchanged at 32.0475 per dollar late on Sept. 23 in Moscow, the lowest level since Aug. 17.

 

____________________________________________________________________________________________________________________________________________

 

Back to oil and gas, FTSE 250 constituent Exillon Energy (LON:EXI) grabbed a big chunk of attention today for similar reasons to Aviva.

 

The Russian operating oil explorer saw its shares rally 4.6 percent to 209.2 pence this morning after taking a hammering last week as oil prices fell on demand fears.

 

As a result, Exillon became one of the most actively discussed companies on bulletin boards with traders debating whether the stock has bottomed out after slipping below 200 pence yesterday to trigger a buying spree.

 

Today’s upward movement in the share price got more support from the news that asset management firm Schroders (LON:SDR) bought nearly 700,000 shares, taking its shareholding to 17 million shares, giving it a 10.378 percent stake in the company.

 

Earlier this month, Exillon made an oil discovery in Siberia with its EWS I - 44 well at the East EWS I field on the Exillon West Siberia (WS) license intersecting 7.3 metres of net oil pay.

 

Besides the Exillon WS license in West Siberia, the company also owns the Exillon TP license in the Timan-Pechora basin in northern Russia.

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Rally might not last as long as expected after all.

 

 

 

(S&P threatening downgrade of France and Germany if EFSF is leveraged)

 

EDIT ** In fact, just decided to open a small short on the DOW.

 

Wow, 200 tick drop in an hour or so! (Pity I only had my limit at 100 :lol: )

 

Ah well, that's covered any potential loss on my Av holding.

 

As for the "trader", I don't think it matters if he was real or not. Having met some "real" ones, I thought he summed some them up quite well.

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Im learing a lot about my mentality through these first steps at investing.

 

Id agree that the markets teach you a bit about yourself. It certainly focuses on ones decision making abilities.

 

Not sure whether to type this partial admission, oh well what the heck, if one is a bit of a ditherer then it will show up - speaking from experience :( here. I blame inherited genes.... Still once the "problem" is recognised it can be tackled.

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As for the "trader", I don't think it matters if he was real or not. Having met some "real" ones, I thought he summed some them up quite well.

 

It seems that he is a private trader who for some reason the BBC latched on to. He clearly doesn't work in the city, but he does have that somewhat flash stereotypical trader look that many might recognize from Hollywood. He seems more of a marketing type with something to sell. Having said that, many of his comments rang true, the Goldman Sachs ruling the world one probably being the best. The BBC have had another go at explaining it all.

 

Maverick trader: Was what he said actually right?

 

Financial trader Alessio Rastani raised eyebrows after making extraordinarily candid remarks about his feelings on the financial crisis. But are his views commonly held?

 

Rastani, who describes himself as "an experienced stock market and forex trader and professional speaker" told viewers he had been looking forward to a recession in order to profit from it.

 

"I dream of another moment like this," said Rastani, adding: "Anybody can actually make money. It's an opportunity."

 

More revelations included the apparently widespread conviction in the City that the euro was doomed, that any rescue plan by European governments was "toast" and that it was financial institutions like Goldman Sachs - rather than elected governments - who "ruled the world".

 

And he issued a grim warning of a coming financial meltdown that would strip millions of their savings.

 

But how much of this should we take seriously?

 

Geraint Anderson, a former City analyst, "Cityboy" columnist, and author of Just Business, gives his take, as does Julia Finch, business editor of the Guardian and Observer newspapers.

 

============================

 

Rastani said: "Governments don't rule the world, Goldman Sachs rules the world"

 

Rastani underlined the power of international financial institutions to control global markets, and painted a picture of nation-states powerless to affect the flow of capital across their borders.

 

Anderson says: "This is very simplistic. It's not just Goldman Sachs who affects the market. Ben Bernanke [chairman of the US Federal Reserve] affects the markets when he sets US interest rates. The Chinese economy affects the market, as does global instability

 

"However, there is the classic phrase 'you cannot buck the market' and it is true to say that governments can be shown to be relatively powerless if they try and take on the financial institutions - as the UK did in 1992 with its failed attempt to stay in the European Exchange Mechanism.

 

"I would say there are lots of pieces of the puzzle that make up the global market. Some are bigger than others, but they all have a role."

 

But many commentators have noted the power of some of the big finance houses.

 

"Goldman Sachs has probably been allowed to have too much influence in the past, with many of its former top bankers once in the highest echelons of the US Treasury and administration," says Finch.

 

"But there's too much conspiracy theory about Goldman Sachs".

 

This is his latest market video.

 

http://www.youtube.com/watch?v=nG4WtnuhX5c&feature=player_embedded#!

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As for the "trader", I don't think it matters if he was real or not. Having met some "real" ones, I thought he summed some them up quite well.

 

Pretty much what I thought when I listened. Then I heard that the BBC had brought on to commentate on the EU situation and he didnt give much factual commentry other than relishing the crash aspect. Also he has been waiting for this for years..... gotta wonder what he was doing in 2008 :lol:

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Pretty much what I thought when I listened. Then I heard that the BBC had brought on to commentate on the EU situation and he didnt give much factual commentry other than relishing the crash aspect. Also he has been waiting for this for years..... gotta wonder what he was doing in 2008 :lol:

 

Answer is here.

 

Markets often move much faster downwards than they do upwards.

 

So let’s be honest folks. Who really wants to take a staircase?

 

What most people tend to be unaware of is that you can make money as the stock prices are falling. If you can apply the right strategies to make money in a downward market (more on that in upcoming posts), then heck, I am going to get inside that elevator and press the button to take me to the ground floor!

 

Don’t get me wrong. I am not into “get rich quick”. Far from it. I have always believed that the fastest way to go broke is to try to get rich quick. There are a lot of risks involved in trading no matter which direction you want to bet, long or short.

 

Conclusion

 

One of my biggest regrets is that I did not make as much money as I should have done in the crash of 2008. I did not do too badly though. I managed to capture the most of that year’s trends. But I got sucked into the “fear” and the “waiting for the news” B.S. that everybody else was getting sucked into.

 

I made a promise to myself: never again! That year taught me to stick to my trading plan and just trade the nice trends like a good trader.

 

That is exactly what I am waiting for this year and next year as well. If a global recession is heading our way, then that is an opportunity. It is an opportunity not just for me but for everybody, including you, dear reader.

 

Don’t get fooled by the fear of everyone else. Always remember the words of Warren Buffet: “Be fearful when others are greedy, and be greedy when others are fearful”.

 

http://www.leadingtrader.com/

 

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