Thursday, May 23, 2013

Putting it in context

Given the level of near-panic from some investors/traders, you would think the markets have completely crumbled over the last 24 hours. However, the bigger picture tells a different story.

If you are not obsessed by every tick in the market, then the charts below of the FTSE and DAX show that, yes, there was a drop, but not a particularly big one given the recent rise in the global markets.

As regards individual equities, sure there has been a small erosion in open profits, and I've been stopped out of a couple of positions, but that's to be expected. Nothing ever rises or falls in a straight line. Trends come and go. They can finish at any time. Time will tell if this is, indeed, the 'top' of this uptrend in the indices. I would encourage you to read Jon Boorman's post here for more.

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