Hedge Fund Deleveraging Likely to Continue - Seeking Alpha
One of the ways to recognize a bottom of the current market.
Is it the conditions, the outlook, or the shear desperation on the side of investors and traders but there is more and more bullish calls lately. Or, at least those calling bottom or the near vicinity of it.
Probably Buffett, suspected Treasury Secretary, is right with his advice to buy into the market at current prices.
Whatever happens, it is possible that the markets are entering the Phase 1 - sideways movement and preparation for Phase 2 - bull run.
Strategically, there are good hints about what is to come. The governments are solving the problem now. Central banks have already reacted in time. So, in that regard, the conditions are set to get better.
The crisis is entering real world, the world on the street, but that lags behind the markets so it will recover in time, as well.
The next month will be very interesting with the U.S. administration change and the world summits about restructuring the financial system. Enjoy the show. This does not happen every now and then.
I suspect that until we see the VIX approach more normal sub-30 levels, stop seeing the DJIA and S&P 500 Index post intra-day percent swings in the high single digits, and see crude oil stop falling in price, it is unlikely that the market will stop feeling the effects of hedge fund selling, allowing for a long-term and lasting rally.
Like most bottoms, we won't know for sure that it has occurred until we see it in the rear-view mirror, but I will be watching the VIX, the price of crude oil, and the Dow Jones and S&P 500 index percent swings for clues.
One of the ways to recognize a bottom of the current market.
Is it the conditions, the outlook, or the shear desperation on the side of investors and traders but there is more and more bullish calls lately. Or, at least those calling bottom or the near vicinity of it.
Probably Buffett, suspected Treasury Secretary, is right with his advice to buy into the market at current prices.
Whatever happens, it is possible that the markets are entering the Phase 1 - sideways movement and preparation for Phase 2 - bull run.
Strategically, there are good hints about what is to come. The governments are solving the problem now. Central banks have already reacted in time. So, in that regard, the conditions are set to get better.
The crisis is entering real world, the world on the street, but that lags behind the markets so it will recover in time, as well.
The next month will be very interesting with the U.S. administration change and the world summits about restructuring the financial system. Enjoy the show. This does not happen every now and then.
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