Financial markets started to react just minutes into midnight. Europe and US benchmark indices crashed 3.4% and 3% respectively! The list of global events mentioned above had caused
· All US and Europe major indices to break low for the year 2011 (risk off)
· Crude Oil finally closed the gap of Feb 14th 2011 (weak global demand) at US 87.30 from US$ 100. In a matter of 8 days! (Risk off). Still diving lower below US$ 87.
· The Aussie touched a low of 1.05 from 1.10 in a matter of 3 days (risk off)
It is not surprising that the· USDX spiked to 75.32 from 74.02, today (risk off)
· VIX peaked at 28.69 from 17.5 (on July 21st, 2011, risk off)
· The Baltic Dry Index (BDI) peaked just a month ago (indicator)
· Gold spiked to a new high of US$ 1681 (safe haven) and subsequently reversed down to US$ 1640 (to fund equity losses).
For the benefits of new readership, we practice Sun Tzu’s Art of War as a principle to our investment strategies. Know your “financial climate” means how knowledge savvy do you understand inter market analysis to interpret the possible events about to occur. AND, it is time to go for war (I mentioned this on July 28th, Are you ready for a financial war?).
If you recall, we had been risk off since early May. Our Generals have rested well. The way the market had moved for the past ten days indicates “FEAR”. When most traders, speculators and investors fear, that’s when it is timely and appropriate to move in. And the time is almost ripe.
Regardless of the ALL important nonfarm payroll and unemployment data due 830pm tonight, this is the time to reap your yield. The strategy will be in DCA formation. That is all I could share with my audience.
As the audience comprise of readers from all levels of risk profiling, broadcast recommendation is not appropriate. If you have · any queries with any of my post since early May
· clarification of any post(s)
· need a one-to-one NO obligation FREE discussion
· outsource your investment planning
· an opinion of your investment portfolio
I will be too pleased to have a listening ear.Please note: If you
· Do not monitor the market CONSTANTLY
· Have no investment strategy
· Do not know what your investment risk is
· You are not investment savvy
· You do not have experience in investment by education or practical experience
Please seek an investment advisor who has at ALL the above positive criterias. Having a solid background of more than 20 years in forex, commodities, intermarket analysis is preferred.
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Hi, does the term DCA stands for dollar cost averaging? And why DCA formation?
ReplyDeleteYes, you are correct. Formation as in regular intervals depending on financial climate or that suits you.
ReplyDeleteThere's no right or wrong answer. DCA is more prudent in the long run
ReplyDelete