Good Afternoon ,
Just another Manic monday ? ....
after two very poor -200 point days in the USA and a pick up in volume on the sell side and a pick up in the Vixx volatility index , European markets opened lower today , and remarkably rallied from their opening low points. Low conviction rally but not much selling pressure in Europe and across the board the markets rallied and crossed through into positive territory on the day peaking at midday. This story wa sidentical in irelan , Europe , the UK but the markets did not hold the levels and as the openin g of New York approached all the efforts at rallying failed and the markets slid back to close at pretty nuch their opening levels for the days whcih were close to the lows.
However there are bulls around iin the face of this eerie calm....and one person told me that falls of 5% within 5 days of making a 100 day high are usually followed by a bounce higher 90% of the time, within the following two weeks and this has happened 8 of 9 times since 1960 and the belief is that these swift falls without a failed rally, or some type of top pattern, rarely mark significant tops. The only failure identified was in 1979. Lets hope that the bulls win out.
In the meantime there is an uneasy calm...
have a good evening
Liam
___________________________________________
Liam Boggan
Merrion Stockbrokers
Tel.: 353-1-2404171
Mob:353-87-2313505
www.merrion-capital.com
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