Ending October 2008 saw a solid gain in world markets which led by Dow Jones Industrial Average Index. Following closely in corelated movement would be FTSE 100 and the vast Asian stock markets. Nikkei and Hang Seng Index was seen correcting on the last trading day of October 2008 which capped a solid gain in the ending week.
Overall stock performances for the month of October seems mixed, however, I am sure many people have lost a great deal of money, be it long position or short position. Many short term long positions were cut before the month end and just last few days saw a lot of short being caught by the unexpected bull came charging really hard against them leaving them no choice but to cover back. The coverings adds up to the buying forms the strong bull charging till the end of October.
Speculation during this period is not advisable as job data and presidential election for USA is underway. Market can go either ways although the market looks more calm and resilent during the past days.
The question is really how can you survive the Market Crash then rather how can you catch the bottom. In my opinion, the bottom was reached just before the recent rally. But nobody could confirm that amidst many important economy data coming on next week. And will attention be turning to small cap stocks? Nobody really can tell.
The above are of personal opinion and not at all an inducement to trade.
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