Last Friday, we saw a typical roller coaster ride in the global market. Asia investors/traders were the first one to take the ride.
Asia market plunged around 2% after market opened when result showed that Brexit's voters was leading. Around 10am, market turned around when result showed Bremain voters leaded. Market shoot up, broke Thursday closing price and some markets even crossed their resistant level. Unfortunately this cheer did not last long. An hour later, once again Brexit turned around to lead. This time, market took the second plunge, all the way down to negative 3%, 4%, 5%....... US future even at one time triggered the 5% cooling alarm. FTSE future down by 9.5%.......
The ride did not stop here. At 3pm, Europe stock market opened. CAC, DAX.......plunged seem unstoppable. However, hours later, we started to see FTSE recovered from its -9.5% loss to -7.5% to -6.5%...... By then, Asia market went into T+1. By 9.30pm, US stock markets opened. Global market started to follow the US, recovered from losses. Unfortunately, this gained did not last long either. Hours later, markets started to plunge once again al the way to closing.
This Brexit panic wiped $2 trillions off world market. Sterling pound slumped to 31 years low. In Singapore, several people rushed to the money changer, hoping to cash in on the sliding pound. However, these people were disappointed after being turned away by money changers who either refused to sell or claimed they had no more stock.
More than seventy-five percent of the people did not expect Brexit to happen. If you are one of them who tap on to a lot of the so called expert called, you should know most of them has little worried about the result of the Brexit to happen. When labour MP Jo Cox was shot on 16-Jun, market shoot up. We saw UK market continuously up for seven days ranging between 1% to 3.5%. I received message, email, called from my those well known remiser (retail investors/traders called them expert) advice me to buy. And so once again, I learned what I had been always been sharing in my blog - Do not trust anyone, do your own homework. And trade what you see and not what you think.
The Brexit result is out, so what next?
How much more the market is going to sell down? That very much depend on the result aftermath. PM David Cameron announced resign. Scotland first minister Nicola Sturgeon pledges to protect Scottish EU interests. More than two million have signed a petition calling for a second EU votes.........Will Scotland fight for independent? Will other EU members follow what UK did? This is something that worry the EU most.
Over the past few years, we saw country after country printing money, lower their interest rate......... All those artificial things been done did not really help the economic. Instead, it went into the market.
People, the lowest income together with the sandwich class struggled to survive. They don't live much happier than yesterday, the day before, the month before, the year before......... We saw inflation number with only 0.5%, some countries even having 0%, -0.5%, ........ But ask ourselves the daily food, groceries....that we purchase, got more expensive or cheaper? And by how much? Oil came down from hundred over dollars to forty over dollars. You drive your car to the petrol station. How much you are paying per litres?
These people became frustrated. They started to vote for someone who really speak for them. Beside the Brexit, we look at the recent selected Philippine president Rordrigo Duterte, US Donald Trump........ Of course, how capable those guys are, that is another side of the story. However, if they are able to prove their capabilities after been elected and got into the parliament, by then we will start to see politician starts to go into the another direction.
The next few days or even weeks, market can be very volatile. It may not be that easy and straight forward. How panicked the market can be, depends on what I mentioned earlier- the aftermath. Government funds will come in to support the equities market. Short term and intraday traders will do the ride. This group of traders can go either way. One thing for sure, they will surf with wind direction. So trade with care.
My new website: http://achua138.wix.com/mysite
Asia market plunged around 2% after market opened when result showed that Brexit's voters was leading. Around 10am, market turned around when result showed Bremain voters leaded. Market shoot up, broke Thursday closing price and some markets even crossed their resistant level. Unfortunately this cheer did not last long. An hour later, once again Brexit turned around to lead. This time, market took the second plunge, all the way down to negative 3%, 4%, 5%....... US future even at one time triggered the 5% cooling alarm. FTSE future down by 9.5%.......
The ride did not stop here. At 3pm, Europe stock market opened. CAC, DAX.......plunged seem unstoppable. However, hours later, we started to see FTSE recovered from its -9.5% loss to -7.5% to -6.5%...... By then, Asia market went into T+1. By 9.30pm, US stock markets opened. Global market started to follow the US, recovered from losses. Unfortunately, this gained did not last long either. Hours later, markets started to plunge once again al the way to closing.
This Brexit panic wiped $2 trillions off world market. Sterling pound slumped to 31 years low. In Singapore, several people rushed to the money changer, hoping to cash in on the sliding pound. However, these people were disappointed after being turned away by money changers who either refused to sell or claimed they had no more stock.
More than seventy-five percent of the people did not expect Brexit to happen. If you are one of them who tap on to a lot of the so called expert called, you should know most of them has little worried about the result of the Brexit to happen. When labour MP Jo Cox was shot on 16-Jun, market shoot up. We saw UK market continuously up for seven days ranging between 1% to 3.5%. I received message, email, called from my those well known remiser (retail investors/traders called them expert) advice me to buy. And so once again, I learned what I had been always been sharing in my blog - Do not trust anyone, do your own homework. And trade what you see and not what you think.
The Brexit result is out, so what next?
How much more the market is going to sell down? That very much depend on the result aftermath. PM David Cameron announced resign. Scotland first minister Nicola Sturgeon pledges to protect Scottish EU interests. More than two million have signed a petition calling for a second EU votes.........Will Scotland fight for independent? Will other EU members follow what UK did? This is something that worry the EU most.
Over the past few years, we saw country after country printing money, lower their interest rate......... All those artificial things been done did not really help the economic. Instead, it went into the market.
People, the lowest income together with the sandwich class struggled to survive. They don't live much happier than yesterday, the day before, the month before, the year before......... We saw inflation number with only 0.5%, some countries even having 0%, -0.5%, ........ But ask ourselves the daily food, groceries....that we purchase, got more expensive or cheaper? And by how much? Oil came down from hundred over dollars to forty over dollars. You drive your car to the petrol station. How much you are paying per litres?
These people became frustrated. They started to vote for someone who really speak for them. Beside the Brexit, we look at the recent selected Philippine president Rordrigo Duterte, US Donald Trump........ Of course, how capable those guys are, that is another side of the story. However, if they are able to prove their capabilities after been elected and got into the parliament, by then we will start to see politician starts to go into the another direction.
The next few days or even weeks, market can be very volatile. It may not be that easy and straight forward. How panicked the market can be, depends on what I mentioned earlier- the aftermath. Government funds will come in to support the equities market. Short term and intraday traders will do the ride. This group of traders can go either way. One thing for sure, they will surf with wind direction. So trade with care.
My new website: http://achua138.wix.com/mysite
No comments:
Post a Comment