The trading session on September 16, 2008 was again choppy. The charts suggest that there is some buying force coming from investors betting on a short term technical rebound after the previous day of free fall triggered by the collapse of Investment Giant, Lehman Brothers Inc.
At this time, the market is already lacking positive news and, making matter worse, AIG, America International Group, is currently in question. AIG is looking for cash. Many believe that the lifeline which AIG needs very critically for its business continuity and survival could be coming from the table of the US Government. The insurer’s current situation has caused its overseas main office in Singapore to seek information and, some believe, to surrender policies to get back some money. AIA, the insurance company under AIG, had assured policy holders that everything is under control.
The Dow Jones Industrial Average Index, DJI is in a very volatile mood on September 16, 2008 as the chart went down sharply as soon as the trading bell rang. During around midday, the DJI is currently slightly in red, overall mixed with a drop of 17.42 points to 10,9000.09.
The financial problems are not limited to Wall Street. The global economy is forming a very negative impression to investors around the world as well. However, short term recovery is in sight as the market seems to be over reacting to the September 15th trading session which saw a fall by more than 500 points.
The above are of personal opinion and not at all an inducement to trade.