Are you ready for a financial war?

The dead line for US debt ceiling is Aug 2nd. At point of writing, it is still in a tug of war. How would you trade during this period?

Since my last post, though I was still monitoring the financial climates, i hesitated to post as there was no new news to post. Markets were volatile and within range. In my opinion, my speculation is still valid.

From my earlier post on the worst has yet to come dated July 12^th, I speculated

“And if you are thinking of the US corporate earnings to booster up confidence, do not hope this would happen. Let me explain, the quarterly results reflect the earnings of the previous quarter. Even if the results are good, the speculators are focus on WHAT is happening today!”

The bulls did not do much better as the bears were still in control of the whole drama. I’ll resume posting as D-Day is just round the corner. Be prepared for more volatility!

Let’s look at how benchmark indices are performing at time of writing, 1230pm Singapore time 20110729

Benchmark	20101231	20110429	20110531	20110630	20110729
All Ordinaries	4,846.90 Dec 30	4,899.00 Apr 29	4,788.90 2:52AM EDT	4,659.80 3:33AM EDT	4,503.30 11:28PM EDT
Shanghai Composite	2,808.08 Dec 31	2,912.14 Apr 29	2,743.72 3:00AM EDT	2,762.08 3:00AM EDT	2,694.14 10:47PM EDT
Hang Seng	23,035.45 Dec 30	23,720.81 Apr 29	23,684.13 4:01AM EDT	22,398.10 4:01AM EDT	22,395.65 11:33PM EDT
BSE 30	20,509.09 Dec 31	19,135.96 Apr 29	18,503.28 6:30AM EDT	18,845.87 6:30AM EDT	18,209.52 6:30AM EDT
Jakarta Composite	3,703.51 Dec 30	3,819.62 Apr 29	3,836.97 5:00AM EDT	3,888.57 5:00AM EDT	4,105.95 11:48PM EDT
KLSE Composite	1,518.91 Dec 30	1,534.95 Apr 29	1,558.29 4:50AM EDT	1,579.07 4:50AM EDT	1,546.33 11:33PM EDT
Nikkei 225	10,228.92 Dec 30	9,849.74 Apr 28	9,693.73 2:28AM EDT	9,816.09 2:28AM EDT	9,893.71 10:34PM EDT
NZSE 50	3,309.03 Dec 30	3,519.33 Apr 29	3,547.64 1:31AM EDT	3,448.35 1:14AM EDT	3,400.11 11:33PM EDT
Straits Times	3,190.04 Dec 30	3,179.86 Apr 29	3,159.93 5:10AM EDT	3,120.44 5:10AM EDT	3,176.70 11:28PM EDT
Seoul Composite	2,051.00 Dec 30	2,192.36 Apr 29	2,142.47 5:05AM EDT	2,100.69 5:05AM EDT	2,138.02 11:28PM EDT
Taiwan Weighted	8,972.50 Dec 31	9,007.87 Apr 29	8,988.84 1:30AM EDT	8,652.59 1:30AM EDT	8,663.11 11:28PM EDT
CAC 40 Paris/France	3,804.78 Dec 31	4,106.92 Apr 29	4,006.94 12:06PM EDT	3,982.21 12:05PM EDT	3,712.66 12:32PM EDT
DAX Frankfurt/Germany	6,914.19 Dec 30	7,514.46 Apr 29	7,293.69 11:45AM EDT	7,376.24 11:45AM EDT	7,190.06 11:45AM EDT
FTSE 100	5,899.94 Dec 31	6,069.90 Apr 28	5,989.99 11:40AM EDT	5,945.71 11:35AM EDT	5,873.21 11:35AM EDT
DJIA				12,414.30 Jun 30	12,240.11 4:04PM EDT
NASDAQ Composite				2,773.52 Jun 30	2,766.25 5:30PM EDT
S&P 500 INDEX,RTH				1,320.64 Jun 30	1,300.67 4:19PM EDT

As you probably know, the highlights of events were Europe debt crisis and the US debt ceiling. The drama is about to end. The volatility will heighten till Aug 2^nd or the resolution of US debt whichever comes first.

My Generals have rested. The financial climate is conducive. We’re ready to battle come August!